Everything moves in cycles as a result of the natural law of action and reaction.

By a study of the past, I have discovered what cycles repeat in the

future"; "It is not my aim to explain the cause of cycles, the general public is not ready for it and probably would not understand or believe it if I ex-
plained it....everything works according to past cycles, and that history repeats itself in the lives of men, nations and the stock market"

WD Gann

Cyclical- en Astrological week analysis

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 Nr.16

GanntraderAstro

Forecast for the week 21st till the 25th of April

Looking back to the previous week (14 th March 18th of April)

Last week we saw the markets consolidate and on Wednesday they even steadily rose
towards the old tops and Friday, on expiration day they hit the markets and put out the
support level line. The actual question at the moment is whether we can still expect a
sturdy fall or have we landed at levels from which we can expect a new rise? We are sit-
ting on the fence. If we were to rise now it would mean the coming out of the bear dip and
that it well possible. The decline from last week was not all that powerful, except Friday 11
of April, when the worlds markets all dropped by two percent. The markets are falling
slower than that they are rising and that is a pretty powerful signal. Every bit of good news
gives hope for a bull run.

The other side of the coin still reveals insecurity in the market. The volumes are not huge
(except on expiration day) and bad news rules. The sentiment on the market can change
at the drop of a hat. We cant yet call ourselves rich with the profits from last week. There
is also the trend-line, which was definitely taken out last week. There is a large third top
and the Bollinger band is getting smaller. A bigger movement is expected. And now it
seems to be higher and higher.

One thing is for certain and that is that the world never stands still. A major movement is
on the way and the technical pointers are definitely positive, only the cycle analysis and
the Astro analysis leave space for doubt, as stated in my analysis last week. Does this
mean that we are in for a new sturdy bottom? No definitely not. The downward pressure is
not strong enough. We can expect a new bottom this week if the markets dont fall on
Monday, which is not that likely. The negative scenario can now be dropped.

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Technical Trading
Signs of the patterns
The pattern is holy and the techniques are supported by what we see on the markets. We
have to stay focussed on the wave movements. We see three beautiful tops that are con-
nected together in time and size. If we are to look at the pattern in the form of an upside
down head and shoulder formation, then this is the moment that the markets could rise
and break out.

Lets zoom into the pattern. The rise from last Friday seems steady enough and asks to be
continued. The pattern also has positive signals. We see that the tops are flat and the
troughs are pointed. The market decline from last week was limited to one bad day and a
few days of consolidation. The head and shoulders pattern has a top in time in June of
13.900 for the Dow Jones. Thats I lot! But I have to say that the pattern is not that beauti-
ful. The right shoulder is a little bit to small.

Dow Jones consolidation pattern

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What are the underlying triggers that could expect a decline? They are the underlying
markets. Looking at oil, exchange and the gold trade we see record after record occurring.
The price of gold could well have had a serious fall after the announcement from IMF that
tons of gold were being removed from the vaults from banks, only we saw gold again rise
last week to nearly the old tops (only last Friday the fall again). Inflation can be calculated
in many ways only for many investors it is a ghost that throws soot in the present Bull Run.
We see the same pattern on the Euro Dollar market. The trend-line from the Euro is still
unbroken and is at the point of breaking out of a temporary consolidation. It would be rea-
sonable to expect a new rise. The value of the Dollar against the Yen is also rising.

Euro-Dollar market

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Cycle analysis
Looking to the coming weeks

The Minute cycle started last Tuesday and saw 4 days of rising. Should this continue then
we could expect a short correction at the end of the week. The rise will surely attract more
buyers to the market. A correction starting Monday could last about 5 or 6 days with a bot-
tom occurring between the 24th and the 28th of April.

For my there are two scenarios. The first is a rise to a top around 24 of April. This is the
most bullish scenario by which the climb will attract new buyers. The second scenario is
an equal bottom. Equal tot the last bottom of last Monday. For me it isnt anymore a option
that there will come a lower low. A bearish movement that we can now break out of the
consolidation pattern down side. With the climb last Friday this scenario is not like to be
happened.

Dow Jones Delta cycle

See next page

5
6
There are plenty of opportunities only the market reveals its own story: one of increasing
power. Even though the volumes are not that large and there is much bad news we can-
not deny that there is a foundation being laid under the trust. The fear for a melt down is
no longer at large.

How is it with the cycles? I will wait and see what next week brings. As I wrote last week a
cycle analyst only knows a few truths and they are that the market can go up, go down
and go straight ahead. We have seen a sturdy rise and placed a top. If we are to take the
top from the end of February as cycle top number 1 then the trough from the 17 th of March
will be number 2. A dip during the third week of April/ beginning of May, which I have
based my analysis on since January, now seems questionable. A miracle would have to
take place. I do however expect that a bottom will be made between in this time period
only I dont think this will be a lower bottom. The next primary top is due sometime in Sep-
tember/ October and until then we can still expect a few Impulse waves. For now the pat-
tern is slowing down so I put a extra top and bottom before the red Delta line (number 13
and 14).

The Gann Fans

Lets look at the Gann Fan from the bottom on the 17 th of March. The days closure of that
day from the S&P 500 would be the best moment to place the Gann Fan.
This creates an entirely different analysis than using the bottom from the 23 rd of January.
The market found support on the 1:1 line. Should this indeed be the correct place for the
Gann Fan and not the bottom from the 23 rd of January, then it is reasonable that the mar-
ket will again go in search for support on the 1:1 during the next decline, as the cycle is
still relatively young. Keep an eye on the level 1335 in the S&P 500 because the Elliott
number 5 is set coming week.

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Gann Fan Chart

Gann Time Projections

The Gann time projections are aiming at the period around the 24 th of April, which is very
close by. The rise from previous Friday suggests that we will not get to see a low, but
more a top. The Gann time periods dont indicate whether it will be a high or a low. The
top on the 7th of April gave an obvious signal that we would be declining around the 24 th of

8
April, although the rise from last Friday brings doubt. The 90-day period is one of the most
important time periods in the Gann analysis and this asks for either a high or a low. We
can say on this moment that it will be a high and not a low. The second important line is
15 of May.

Time projections S&P 500

Square of nine
The Square of nine is one of the most interested methods of Gann. All his visions are re-
lated tot this calculation. I made a combination of two types of squares. You see the time
levels and the prices levels. For 15 of May there are two kinds of levels. The first is a
prices level of X. This is the most obvious one because the Minute number 5 of the Elliot

9
will be set this week. But when we look further, we can also see a price level of X. This is
the same prices level of the head and shoulder pattern.

Square of nine

Master Time Factor

Lets look for to one of they other Important Gann methods. The Master Time Factor give
us a clue of the way we can expect that the course will go. You can see in the chart that
there will be one more bottom before we can see really all bulls run.

10
Master Time Factor of the Dow Jones

Resume
The pattern that presumes is not longer intact. This gives the presumption that we are ac-
tually dealing with a different pattern than the presumed pattern that I have been following
over the previous months. There are two possibilities. We will either go into a short con-
solidation phase followed by a decline to the end of May (that will then be a higher bottom
than those from the 23rd of January and the 17th of March). Or the market will now break

11
out of the consolidation pattern and thereby close the bearish decline and rise to a higher
level. The markets will then continue to rise till October, obviously with the necessary
steps in between.

Lets take a look at what is happening astrologically.

Astrological analysis
Looking to the coming weeks
Last week we expected a counter trend of three to four days, around Tuesday or Wednes-
day, with Wednesday having the Moon Saturn conjunction. Considering that Saturn is
strong at the moment we can expect a rise, although this is only a short duration influence.
We have to look at the whole picture. The astrological signs for next week are negative.
We are dealing with an increasing opposite between Mars and Jupiter. Mars in negative
aspect with Jupiter can create a progressive pressure and opposites are usually about
struggle and doubt. The bow is slowly being tightened. The forces are standing right oppo-
site each other (180 degrees) and, as it were, are pulling on each other. The tension will
build up during the coming days now that both planets are aiming for the exact opposite
on the 24th of April, the climax of the opposites. The underlying signals are very strong.
Out of the 10 economic news affaires, 8 are negative and 2 are positive. The increase of
negative affairs characterizes this opposite. What we cant see is the market aiming for a
low: this is a rare contradiction. The climax is generally a top. The so-called wall of wor-
ries reaches its top. I may be mad but I cannot see these signals as positive.

It could well be that I have misinterpreted another important signal. Last week I mentioned
the aspect Sun 120 degrees Saturn, a relatively innocent aspect that in normal circum-
stances creates growth. Sun triangle Saturn indicates staggered growth and a need for
security. Definitely a positive aspect was it not for the Sun being exactly between the op-
posite of Mars and Jupiter. The Sun, as it were, bridges over the true struggle between

12
Mars (destruction) and Jupiter (growth). The Sun shines much light and brings the prob-
lems between these two planets to the foreground. It is therefore my opinion that the eco-
nomic (Jupiter) decline (Mars) will be made clear. However, maybe I oversee the strong
need for security (Saturn-Sun). This would define why the markets are rising yet the micro
economic figures are very negative.

Astrology chart

If the 24th of April becomes a top then it will be followed by decline, a trough that will most
probably occur around the end of May. This should definitely be a higher trough and
should put a definite end to this bearish phase. The long lasting negative Vedic cycle is
then at its end. The 9th of June brings in a long-term positive cycle. Beware: the signify

13
cance of this cycle has surprised me more than once. At the end of this present Vedic cy-
cle there is talk of a double negative cycle started on 28 of April, even though the signals
from western astrology do not follow. If I have to go in search of a bottom then it will more
than likely be around the 26th of May, as the aspect Jupiter Uranus will be playing a major
role. We have seen how this aspect has worked out positively over the last couple of
weeks. The need for growth and expansion is so enormous that its strength can even cre-
ate positive market results even though the sentiment is negative.

On the 23rd of May these two are again an exact positive aspect. Nevertheless, around
this time we also have to take the aspect Saturn opposite Neptune and Saturn 90 degrees
Sun into consideration. Note, the aspect Saturn opposition is not exact. The distance be-
tween the two is 7.5 degrees. Shortly afterwards Saturn will turn retrograde and walk away
from Neptune but the strong Sun negative aspect in both will no doubt have its influence.
The days of 23-26 of May are not in the same range of the Gann period of 15 of May. We
will see whats going to happened, we follow the pattern.

The aspect Mars and Jupiter will increase during the coming week. We have four days till
Thursday. The Sun, which last week created negative aspects between both planets, has
been replaced by Venus. This stands next week in between the two at 90 degrees. With
Venus we can expect an increase in currency exchange. On Thursday Venus is exact with
Mars and Jupiter whilst the aspect between Mars and Jupiter is also exact. Typical for this
signs are failure companies. This should be a first class climax, which can go up or down.

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Technical Trading
Trading the Ross Hook
The Ross hook has mixed signals and the fall to below the Bollinger bands should be
taken seriously. The market has given off half signals about the making of the 1,2,3 high.
The top from the 7th of April stands and so too the bottom from last Monday. The rise till
last Friday hasnt been rounded off yet and for this reason it is necessary that the market
will go climb some more. Fact is that the 1,2,3 high hasnt made last week and that we still
have to wait.

S&P Ross Hooks

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Forecast for the coming week
The underlying forces on the market are on the increase, actually quite strongly. The tech-
nical indicators can be interpreted in a variety of ways and the formation of the highs and
lows give reason for rise and the reversed head and shoulder pattern is also a positive
signal. Negative signals were the trend-break from last week. This market rise also took
place in the expiratie week. Mixed signals from the Gann time period point to half way next
week, the 24th of April, where either a high or a low can be made. The cycle analysis also
gives off different signals. The Minute cycle is nearly rounded off and can create a fall.
Problem is however, that a large number of indices made new tops last week. The rise
from last week, was in any case, too strong to create a counter-trend. Still the underlying
markets reveal negative signals. A record price in oil, a record in the Euro price in relation
to the Dollar and also a strong rise in the price of gold. To round it off: the astrological sig-
nals. The tension is mounting and everything points to a climax on Thursday. To be hon-
est I dont know what will happen.

Trading Tips
Should Thursday start with a decline then it is reasonable to say that the Ross hook sig-
nals are present as a first number. We can expect an initial fall towards the bottoms of last
week. I advise caution when trading and only if you are able to keep an eye on the course
of the market. Fore the Ross hook traders, they have to wait an till there will be another
1,2,3 high.

Good luck with trading

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Notes

I generally use 3 methods to determine my trading moments. They are cycle analysis, as-
trology and technical analysis, the last being based on the Joe Ross method. I shall define
all 3 procedures.

The cycle analysis: In a period of 28 days I have shown the average deviations of the
highs and lows. The 28 day periods are shown on the graph as the vertical, colored lines,
red, blue, green and yellow. The various colored horizontal lines and numbers show the
highs and lows that fall within this period. It's a static calculation of the future highs and
lows. The blue numbers forecast the smaller highs and lows, the Minute waves. These
have an average length of 14 days (10 trading days) from low till low. The red lines show
the medium larger movements (minor) and the brown numbers the major highs and lows
(from the four/five year cycles).

The Minor wave has an average of 35 days and the primary wave movements have a
length of 77 days from low till low. The primary cycle from the first low till the last low has
an average length of 4 years with a maximal length of 5 years. Certain periods have a
quicker succession of highs and lows ( for example by a top and bottom pattern). The hori-
zontal lines under the figures show the expected position of a high and low together with
the length of the average deviation. It is therefore reasonable to assume that a high or low
will be placed within these lines, but it is not definite.

Beside cycle analysis I also use astrology. I generally use the major aspects between the
celestial bodies and estimate when the influence of these aspects, which can take
months, are most effective. These moments are determined by aspects from the faster
moving celestial bodies. Gann also used astrology in his analysis method. On a graph,
that was found after his death, he had penned in that the exchange rate was determined
by the faster moving celestial bodies (the key is in the fast ones).

20
I too hold this opinion. Certain aspects often appear by a high and others mainly by a low.
These moments are indicated by short vertical lines with a date. In the accompanying
graph the green, red, yellow and light green, short, vertical lines indicate a fluctuation in
prices. The art of using astrology when investing lies in the giving of an interpretation on
the position of one or more planets,

it is human work. I also try to estimate the power in the movements. I therefore speculate
the course of the stock exchange because this method alone doesn't offer enough certain-
ties. The Gann analysis from Jan van Gemeren offers more security.
Furthermore I use the astrology from the Veda's, this in particular is aimed at making pre-
dictions. In this the cycle periods of the planets, the sun, moon and North Node are all
taken into consideration, the arrangements are constantly different but the relationships
are the same. In doing so periods of positive, negative and neutral cycles come together.

Besides using cycle analysis and astrology I also use technical analysis, in particular the
method of Joe Ross (especially the Ross-hooks). The theories of Joe Ross work well
when determining trading moments. Precisely the combination of these techniques pro-
vides much insight into the expected rate of exchange. Above all I try to be as clear as
possible about the short and long term rate of exchange. These are techniques and meth-
ods which alone can not offer security but can be visually illustrated ( the road map).

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