Study the past and the future will become an open book.
Every movement in the market is the result of a natural law and a cause that exists long before the effect takes place that can be determined years in advance. The future is but a repetition of the past. Study the past and the future will become an open book. There is nothing new under the Sun.
The larger cycles influence the masses through their subconscious, and have them believe that times are either good or bad. These feelings are what drive prices up or down through buying and selling, and determine times of boom or bust. The cycles are affected by magnetic forces that establish their time, duration and magnitude. By understanding the cycles, you will be able to do the opposite to the masses and make money. Booms or busts are only in the minds of men. It is also important to be familiar with your own cycle. When a low period is coming, it is time to be inactive, to study, and to prepare for the next high period. You can only learn from difficult, not easy times.
Everything has a major and minor, and in order to be accurate in forecasting the future, you must know the major cycle. The most money is made when extreme fluctuations occur. When the larger cycle is dominant, it will cause the minor cycles to reverse. This is the main reason that the average person misunderstands cycles. There are even larger cycles than the following examples, going back thousands of years. You can use cycles for predicting weather, wars, real estate, stocks, bonds, and commodities.
Great Cycles
Never overlook the great cycles, which mark extreme high and low prices that occur over a long period of time.
90-Year Cycle
When we start from sunrise or the horizon and measure until noon, we get an arc of 90º, which is straight up and down starting from the bottom. 90 years is a very important time period. This time period must always be watched at the end of long time periods.
90 days, weeks, or months are also very important time periods. The 90 year time cycle is also important because it is three times the 30-year cycle and two times the 45-year cycle. In conjunction with the 90-year cycle, also watch for extreme price moves at the end of the 30 and 45-year cycles. You can also check back against extreme highs and lows to see how the cycle works out 90 years later.
84-Year Cycle
This is one of the great cycles in stocks or commodities as it runs out 82 to 84 years. 84 is 7x12 and an extremely important number (7 times 12-year cycle). If you go back 84 years, you will see the value of this cycle.
60-Year Cycle
The 60-year cycle is twice the 30-year cycle, one of the main cycles. The cycle equals 360º and the main stock or commodity cycle is 360 months, or 30 years. The Chinese use a 60-day and 60-year cycle, and 60 is 1/6 of a circle. You should always use this cycle of 30 years and its proportionate parts.
49 to 50-Year Cycle
A major cycle in stocks or commodities occurs every 49 to 50 years. Periods of ‘jubilee’ years of extreme high or low prices, lasting from 5 to 7 years, occur at the end of the 50-year cycle. 7 is a fatal number, referred to many times in the Bible, which brings about contraction, depression, and panics. 7x7 equals 49, which is known as the fatal and evil year, causing extreme fluctuations.
The 49-year cycle is 225º to 240º in the second circle of 360º, the period of 49 years being 588 months. Note that 576 is the end of the 4th square of 12, which is the fatal square, or death point, representing the grave, the winter season, the end of life or anything, and the beginning over again. There are 4 sides to a square and the square is inside the circle, therefore, it is the end or the beginning of a new square or cycle and could commence as early as the 48th year.
45-Year Cycle
The digits from 1 to 9, when added up, total 45. 45º is the most important angle. Therefore, 45 years in time is a very important cycle. One-half of 45 years is 22½ years, or 270 months. One-fourth of 45 years is 11¼ years, or 135 months, which is three times 45 months. You will note how important these points are on the ‘360º Circle Chart’. One-eighth of 45 years is 5⅝ years, or 67½ months. One-sixteenth of 45 years is 33¾ months. 45 years is the synodic cycle of 30 years and 84 years together, and is half of the 90-year cycle. This is where the 84-year cycle moves forward 45 years, and at the same time, the 30-year cycle moves forward 1½ cycles to equal 45, which is the synodic cycle.
30-Year Cycle
This is one of the main cycles, and the minor cycles are all proportionate parts of the 30-year cycle or circle:
30 years |
is |
|
360 months |
22½ years |
is ¾ |
or |
270 months |
20 years |
is |
|
240 months |
15 years |
is ½ |
or |
180 months |
13 years |
is |
|
156 months |
10 years |
is ⅓ |
or |
120 months |
9 years |
is |
|
108 months |
7½ years |
is ¼ |
or |
90 months |
5 years |
is 1/6 |
or |
60 months |
3¾ years |
is ⅛ |
or |
45 months |
1⅞ years |
is 1/16 |
or |
22½ months |
2½ years |
is 1/12 |
or |
30 months |
0.93 years |
is 1/32 |
or |
11¼ months |
20-Year Cycle
The next important cycle is the 20-year cycle, or 240 months, which is ⅔ of the 30-year cycle. Twenty years is also the synodic cycle of 12 and 30 years together.
15-Year Cycle
This is the next cycle of importance because it is ½ of the 30-year cycle. 15 years is ¾ of the 20-year cycle and most important because it is 180 months, or ½ of a circle.
13-Year Cycle
You will see why this cycle is of importance by the examples against previous years. You can prove for yourself by checking and adding 13 years to any important top or bottom. Quite often, the market will go from high to low and from low to high during this cycle. 13 years is a quarter of 52, and 52 is close to 1/7 of a circle.
10-Year Cycle
The next important major cycle is the 10-year cycle, which is ⅓ of the 30-year cycle, ½ of the 20-year cycle, and 1/6 of the 60-year cycle. It is also very important because it is 120 months, or ⅓ of a circle. This produces fluctuations of the same nature and extreme highs or lows every 10 years.
9-Year Cycle
The market often makes important tops and bottoms with this cycle. Look at 9, 18, 27, 36, 45, 54, 63, 72, 81, and 90 years apart.
7-Year Cycle
This cycle is 84 months and a very important cycle. You should check 7 years from any important top or bottom. Also watch 14, 21, 28, 35, 42, 49, 56, 63, 70, 77, and 84 years. Top and bottoms often come out 7½ years apart or on the 90th month. It is very important to watch 90 months for major and minor tops or bottoms. 42 months, or ½ of this cycle, is very important. You will find many accumulations around the 42nd month. Watch around 21 months, or ¼ of the cycle, and 11¼ months for a change in trend.
5-Year Cycle
This period of 60 months is important because it is ¼ of the 20-year cycle, ½ of the 10-year cycle, and 1/6 of the 360º circle.
3-Year Cycle
Accumulation of major and minor moves often occur in the 34th to 36th month from major and minor tops and bottoms. Always watch 3 years from any important top or bottom, as a change in trend is likely to occur.
1-Year Cycle
This is the smallest cycle, but there is a commodity crop harvested every year. As mentioned, important changes in trend often occur one year from previous tops and bottoms. Watch all anniversary dates for changes in trend. This may not be a change in the main trend, but a reaction can run one to three months at the end of a one-year period. They cycle of 1 year will often show a change in the 10th or 11th month. Cycles do not always come out in even months. Follow swings and geometrical angles on daily, weekly, and monthly charts.
The seasonal year |
begins on the |
20th of |
March each year |
The Spring Equinox |
begins on the |
21st of |
March |
The Summer Solstice |
begins on the |
21st of |
June |
The Autumn Equinox |
begins on the |
23rd of |
September |
The Winter Solstice |
begins on the |
21st of |
December |
Commodities are seasonally low at harvest time, the winter months, because farmers sell their crops and prepare their ground for the following season. Commodities are higher in March as scares about planting occur. April is a seasonal low if planting goes without any major problems. The next high period is May and June as the heat of summer can bring drought conditions. Seasonal lows can occur in August with highs in September. Follow the large cycle to determine if commodities are consistent with the natural curve.