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Method for forcasting the stock market

You should keep a yearly, monthly, weekly and overnight chart. You will find on the weekly chart that stocks will often reverse the minor trend up two or three weeks, but the third week it will not make a higher top or a higher bottom; yet at other times it will hold for several weeks without advancing above the level made in the first two weeks rally. In cases of this kind, it is always safe to buy or sell with a stop 3 points above or below the two weeks reverse move. If the market is going higher, it should continue up the third week, or down, as the case may be. The rules apply in a bear market as in a bull market.

The overnight chart, in order to show a reversal in trend, must go 3 points above the last top or bottom. The over night chart is based on bottoms. As long as higher bottoms are made, it continues upward. As long as lower bottoms are made, it continues downward. The basis of all movements are calculated from bottoms. For a market to advance, bottoms must be progressive or increasing, and if a market declines, bottoms must decrease.

HOW TO FORCAST

Every movement in the market is the result of a natural law and of a cause which exists long before the effects takes place and can be determined years in advance. The future is but a repetition of the past, as the Bible plainly states: “ The thing that hath been, it is that which shall be; and that which is done is that which shall be done, and there is no new thing under the sun.”  -Ecol 1:9.

Everything has a major and a minor, and in order to be accurate in forecasting the future, you must now the major cycle, and the most money is made when extreme fluctuations occur.

The major cycle of stocks occurs every 49 to 50 years. A period 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 and it is ruled by the planet Saturn, which brings about contractions, depression, and panics. Seven times 7 equals 49, which is shown as the fatal evil year, causing extreme fluctuations.

The most important Time cycle is the 20-year cycle, or 240 months and most stocks and averages work closer to this cycle than any other. Five years is one – quarter of twenty and ten years is one – half of twenty and very important because it is 120 months. Fifteen years is three – quarters of twenty years and important because 84 5/8 is 15/16 of 90.

The next important major cycle is 30 years, which is caused by the planet Saturn. This planet makes on revolution around the Sun every 30 years. Saturn rules the products of the Earth and causes extreme high or low prices in products of the Earth at the end of each 30–year cycle, and this makes stocks high or low. The most important cycle of all is the 20–year cycle.

The next important major cycle is the 10–year cycle, which produces fluctuations of the same nature and extreme high or low every 10 years. Stocks come out remarkably close on each even 10–year cycle. The minor cycles are 3 years and 6 years. The smallest cycle is 1 year, which will often show a change in the 10th or 11th month.

In rapid markets a move will run 6 to 7 weeks and have some kind of a minor reversal in trend, but often markets will continue for several months, only reacting two weeks, then resting possibly two or three weeks and resuming the main trend. Often they move right on up or down in the third week. This same rule applies to daily movements. Fast markets will only move two days in the opposite direction to the main trend and on the third day they will resume their upward or downward course in harmony with the main trend.

In all movements use the angels and also calculate the 1/3, 2/3, 1/4 and 3/4 points of the major or minor move. One – half is the most important as it equals the 45° angle, which is the strongest and most fatal. The next in importance is 2/3, which would equal a triangle, or 120.

All rules based on Natural Law are applied the same to Time, Space and Volume Charts.

It never pays to guess. Always consider the main time swing of a market; then watch your weekly and overnight charts until they show a reversal or time has expired. All markets move in three to four sections. The third or fourth movement up or down marks the culmination. A reverse signal is always given before time expires and then the market may make two or three swings up or down into the same territory, going a little higher or a little lower than the tops or bottoms from which the warning signal was given. When this is taking place the market is either being accumulated or distributed.

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