Continuing this year's market lessons, Gann's decade cycle is also handy
to know. Gann was the first to point at that the decadial years ending
in 1 and 2 were often lows, year three recovery, year four retracment of
that recovery, year five had always been strongly up, and has continued
since Gann's day, year 6 a bit undulating but up, year 7, at least until
Gann's time, big highs in the (northern) summer, big low in October, year 8 recovery, year 9 high, after which often came recession.
Here are the 07 years, since Gann moved on in 1956. They have happened
pretty much as Gann said they would.
Dow 97, 87 - PDF
Dow 77, 67- PDF
Dow 57, 47- PDF
To look forward, Gann said to look back. 07 therefore, count back 5, 7,
10, 15, 20, 30, 40 years and so on. Gann explains how to do this in chapter six of the commodities course, and is highlighted in my classes
Dow 60 months, 90 months - PDF
By any measure, you have to say an interesting probability for a Dow
July high and October low this year 2007.
(I did not do this calculation just now by the way. It is something I
had looked at several years back, and added to the real estate 18-year
cycle stuff, is one more reason I have been bullish these past couple of
years, as past emails have stated.)