Indian Time Cycles, Gann and the Future of the U.S. Stock Market

"Most Gann aficionados know that Gann used				minor ups, strong downs, or sideways. If one
astrology and that the most successful				studies the 215 year history of the stock
traders use it in their trading, as it is the				market, and is familiar with the rules for
hidden undercurrent that runs the markets.				predicting and interpreting the Indian dasha
J.P. Morgan, the founder of the Morgan bank,				or time cycle system, the mysterious cycles
was fond of saying that "anyone can be a				which seem to govern stocks would no longer
millionaire, but to become a billionaire, you				be a mystery. For example, by no accident the
need an astrologer." He had a private				bull market that began in 1982 coincided with
astrologer, Evageline Adams, who helped him				the beginning of a 16-year Jupiter period,
tremendously. I have been fortunate to				which began in late August. In general then,
purchase financial astrological books from				this system predicted the stock market would
her library.				continue to expand until 1998, since Jupiter
				is a ""bullish"" planet and is well placed in
It is a little known fact that W. D. Gann				the natal chart of the May 17, 1792 stock
went to India and studied Indian Sidereal				market chart. Rises and falls within the
Astrology. In his notebooks we find sketches				major cycles are explained by sub-periods, or
of astrological symbols on his charts; and in				antardasas. These sub-periods can either
his memoirs, he discusses his journey to				amplify or diminish the strength of the major
India. In fact, the famous Gann wheel was				period.
first used by tea merchants in seventeenth
century India. Gann also discussed the				Within this 16-year period, the transits of
importance of using the starting date of when				Jupiter, its retrogradation and aspects to it
the first futures contract for a commodity				are especially influential since Jupiter
began trading for predicting the future of				assumes the second most important role in the
that commodity. To my knowledge, there are				NYSE chart next to the moon, the chart lord.
very few individuals who use these starting				The Jupiter period ended in 1998, when a
dates to successfully time the markets even				19-year Saturn period assumed the second-most
though my experience in using Indian Sidereal				important role.
astrology has shown that these charts are
invaluable.				A recent study I did of the NYSE will explain
				how the dashas can be of use to spot short-
Below is a brief introduction to Indian				term and intermediate declines or rises.
Sidereal Astrology, an overview of Indian				Certain combinations lead to very predictable
time cycles and how they can be used, and a				outcomes. To get daily timing on the stock
forecast through 2017 for the U.S. stock				market, one needs examine four or five levels
market based on this system.				of dashas, or cycles, to break the larger 20-
				and 2-3-year periods down into 20- and 3-4-
The Western Zodiac vs. the Indian Zodiac				day periods. Amazingly, the cyclical
				combinations that are negative on the larger
Indian astrology is over 5000 years old and				scale level will often prove negative on the
has its foundation in ancient science.				smaller scale.
Parashara, a great seer or ancient scientist,
intuited the laws of space and time				A comparison of the October-February 1987-88
responsible for the evolution of human				fourth level cycles (Jupiter/Mercury/Venus
consciousness and recorded his findings in a				Rahu etc.) with the third level periods in
book called the Brihat Hora Sastra.				1901-1904 (Mercury/Venus/Rahu) reveals that
				the major lows coincide with a repetition of
The first major difference between Indian and				particular combinations. This principle can
Western astrology lies in the calculation of				also be extended to sections of other cycles
the longitude of the planets. Ancient Indian				in other years. For example, note the
astrologers observed that the equinoxes and				following:
solstices moved backward by one degree every
72 years, an astronomical phenomenon now				Venus/Rahu/Saturn: (8-28-29 to 2-17-30)
known as precession. Over time this has				Declined from high of 372.06 on 9-03-29 to a
resulted in a difference of slightly over 23				low of 230.07 on 10-29-29. Jupiter/Mercury
degrees between the tropical Zodiac, used by				Venus/Rahu/Saturn (Dec 4, 1987). Signaled
Western astrologers, and the sidereal Zodiac,				another major low and decline to 1747 on the
used by Indian astrologers. In essence, the				Dow after being as high as 2051 following the
two systems differ in their choice of a zero				crash.
point for Aries--the Western system uses the
position of the spring equinox, while the				Jupiter/Mercury/Venus/Venus/Rahu (October 19,
Indian system uses a fixed star. Thus when				1987) The third level Venus period did
the Sun is moving into Aries according to the				contribute to the direction of the decline in
Western system, it is still at 6 degrees				combination with a number of bearish
Pisces in the Indian system. (For a further				oppositions, the return to an eclipsed
discussion of the differences, please see my				constellation, and the sidereal transit of
article in the Winter 1989 NCGR Journal.)				Uranus into Sagittarius. This one example
				indicates how the Venus/Rahu combination can
Planetary Periods: Beyond Transits				be used to signal a sharp decline if it
				occurs in a particular combination.
A dasha is a period of time during which
one's life is influenced or governed by a				This particular Venus/Rahu combination is
particular planet. For example, the shortest				only one of many combinations that one can
period, the Sun period, lasts six years,				label, and historically study. Other
while the longest period, Venus, lasts twenty				combinations are bullish, such as when the
years. These cycles unfold in a fixed				sequence unfolds from a Sun period into a
sequence and comprise 120 years before they				Moon period and onto a Mars period. For
repeat. The order of the cycles is:				example, the stock market's last major Moon
				Period went from August 1947-August 1957.
Ketu (Moon's South Node): 7 years				During that time the Dow went from 179.74 to
				492.32, a gain of over 200%. During smaller
Venus: 20 years				moon cycles within larger periods, such as
				the Mars/Moon period from Jan 21, 1964 to
Sun: 6 years				August 21, 1964 the market climbed from 776
				to 838. And in the Rahu/Moon period from Jan
Moon: 10 years				31, 1980 to July 31, 1981, the Dow climbed
				from 875 to 935. Even on the third level we
Mars: 7 years				can usually count on a rally during a moon
				period, such as the Jupiter/Mercury/Moon
Rahu: (North Node) 18 years				period from April 4, 1988 to June 13, 1988.
				We saw a surprise rally that began in late
Jupiter: 16 years				May and took the Dow from 2000 at the
				beginning of the period to almost 2200 by the
Saturn: 19 years				end of the period.

Mercury: 17 years.				From the above examples, one can see the
				value of being able to label and quantify the
Where the cycle begins is based on the exact				cycles in order to predict the magnitude of
position of the moon at the time of birth.				the move. As many cycle analysts know, one
For example, when soybeans started trading in				can often find major cycle lows and entry
1936, the moon was in the constellation				point but still not have any idea how large
(nakshatra) of Orion, which is ruled by the				the move is going to be. The Indian time
planet Mars. Thus a sequential unfoldment of				cycle analysis is a genuine solution to
cycles began with a seven years Mars period				forecasting because it can predict the
followed by Rahu (North Node of Moon), 18				future, not just suggest it from the past.
years, Jupiter 16 years, into its current
Saturn period that lasts 20 years etc. If				Future of the US Stock Market Based on Indian
beans had begun trading a day later, then the				Cycles into 2017
cycle would have begun from the next
constellation, which is ruled by Rahu, or the				A 19-year lackluster Saturn period in
North Node of the moon. The number of degrees				1998-2017 does not have the bullish energy
the moon has transited through a nakshatra				that we have seen in the Jupiter Period from
will determine how much time is left in the				1982-1998. Consequently, the market will not
initial cycle. Thus if the moon were in the				go straight up nor will it go straight
final degree of the constellation, the				down--and it turns out that Venus periods
initial cycle will begin in the last section				have the biggest percentage losses. As we saw
of the cycle. (Software is available for				in the 18 year Rahu period from August 1964
rapid computer calculation of these				to August 1982, the market can go net
cycles--see references below.)				sideways in relatively narrow price bands
				over many years.
Within major cycles are sub-periods or
sub-cycles that also unfold in a set				There is an approximate high into June 9,
sequential pattern. The sub-cycle begins with				2007 followed by a sharp decline into the
planet ruling the major cycle and then				week of Oct. 22, 2007 with a lower low due
continues in sequence. For example, the				into about the third week of April 2008. We
current Saturn period for stocks started with				are still watching patterns to translate this
a Saturn/Saturn period in 1998, and continued				into price movement.
with a Saturn/Mercury period in August 2001
followed by a Saturn/Ketu period in 2004,				There appears to be a recovery rally into
etc. The major Saturn cycle will finish in				late May 2010, then a sharp fall into Dec.
2017 and then the U.S. stock market will go				2010, a recovery toward the highs into Jan.
into a Mercury major period. In order to				2013 and a major decline into 2013 that is
properly use the Indian time cycles and their				one of the lowest points in the whole period,
smaller periods, one must have the exact time				a recovery into August 2015 and then a sharp
of the start of the first future's contract				fall into the end of the period, which makes
of a commodity. Each minute that one is off				new lows into April 2017. Hence the periods
can lead to changing the prediction low or				to be long stocks appear to be Feb.-June
high by about 4 days. O'Non and Remnick				2007; April 2008 to May 2010 and Dec. 2010 to
illustrate the importance of the exact time				Jan. 2013. We adjust these directional
using an analogy from physics:				indicators using Elliott Wave pattern
				analysis to predict price. There appears
To launch a rocket ship to the moon,				enough upward momentum in the current cycle
knowledge of the precise angle, time, and				to take stocks much higher into the June 2007
location of the launching on earth are				cycle high.
necessary. If it is launched at a slightly
different time and angle, it will miss by				Gann reminded us that we have to take
30,000 to 40,000 miles.				everything we know and apply it to our
				forecasts. Indian Time cycles are one tool.
I have had to travel to the archives of the				In our newsletter, we combine it with Elliott
Chicago Board of Trade and other major				wave pattern analysis, minor astrological
exchanges to verify the first tick starting				timing from planetary aspects, and five other
time and have collected an almost complete				proprietary cyclical techniques as well as
set of dates and times that I make available				technical analysis.
to participants in my advanced seminars or
through my home study course on Vedic				Back in 1990 and 1994, when everyone was
Financial Astrology (see references below).				bearish about stocks, we predicted DOW prices
The challenge is that some of this data is				well over 7000 into 1998-2000 based on our
very hard to get or was destroyed as was the				dasha cycle models.
case for wheat and corn data due to the
Chicago fire and New York exchanges merging				Conclusion
and not keeping good data. It takes time to
rectify the charts and make them useful. The				Anyone attempting to uncover the mysterious
easiest way to understand the effects of a				laws of nature that underlie the commodity
period is too look at past examples. Because				and stock markets will be rewarded and
we have 215 year of data on the U.S. stock				intrigued by the depths of Indian astrology.
market, and the complete unfoldment of a				The study of Indian astrology leads not only
series of cycles is 120 years, we can go back				to knowledge of economic laws, but ultimately
to the period between 1878 and 1897 to study				to knowledge of the self. Understanding
past analogues.				Indian cycles and transits is as important
				for trading successfully as a good timing
Application of the Indian Cycles to the US				system. A combination of the two is
Stock Market				astoundingly useful and leads to a profound
				appreciation of the order of natural law.
What is extraordinarily exciting about using				While no astrological system should be used
dashas or Indian time cycles for market				100% to time market entries and exits, using
prediction is that it allows one to know the				both astrological and technical signals can
exact date that cycles change, to label them,				certainly stack the odds in one's favor.
and to quantify whether they are strong ups,

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Indian Time Cycles, Gann and the Future of the U.S. Stock Market