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 Instructionsfor MassPressureCharts
This excelprogramis extremelyeasyto use.It hasthreetabsat the bonotnof the sheet
(1) Mass PressureChart,(2) ChartData and (3) o/oChange
Data Dou'30.

First, click on the o/oChange

Data Dow30 tab. This sheetcontainsall the data tor the
Dow30 and or NYSE stockaveragefrom 1880to 2000.The yearsarethe numbersin Red
running acrossthe sheet.We simply copy & pastethe yearswe want into the Chart data
tab.

What you do is simply click on the letter abovethe dateyou want. This will highlight the
entirecolumn.Next click your mouseaffow on the word "Edit" at the top left hand side
of the worksheet(Next to the word "File"). Now click the word copy and the column that
was highlightedwill have a dasheddottedline going aroundall the cells. Showingyou
that the informationhasbeencopiedby Excel.

Now click on the Chart Datatab and move your mouseaffow to cell C1. Click on this
cell so thata dark boarderappearsaroundit showingyou that it is active.Now hit "Edit"
agarnand select"Paste". If you want to make a compositeof more yearsjust go back to
the %ChangeData sheetand copy anotheryear.Then pasteit in cell Dl. Next would be
E1 the F1, etc.You canmakea compositeof up to 14 differentyearsor out to cell P1.

If you want to duplicatethe Mass PressureChartthat David Hunt doesin Australia,you

simply copy the data from exactly 80-yearsago from the o/oChange Data tab and pasteit
in cell Cl on the Chart datatab.That is it. So as an example,forthe year 2001,You
would copy the year l92l by clicking on the letter abovethe year,which is the letter
6'AP"then click the mouseaffow on "Edit" then selectcopy, then click on the Chart Data
tab.Next click on cell Cl, click "Edit" andthen selectpaste.Now just click on the Mass
PressureChart Tab and look at the Chart.

If you wantedto make a compositeof the years 198I, 1941and l92I you would have
simply copiedtheseextratwo yearsand pastedthem in cells D I and E I . It doesnot
mafferwhat order you do it in either.

If you want to make your own decenialcharts,just copy and paste dataat every ten year
incrementfrom theo/ochangedatasheetto the Chart datasheet.For the year 2001, You
w o u l dc o p yt h ey e a r s1 9 9 1 ,1 9 8 I , 1 9 7 1 , 1 9 6 11,9 5 1 ,1, 9 4 I , 1 9 3 1 , 1 9 2 11,9 1 1 ,1 9 0 1 e
, tc.
Into cells C1 throughL1 respectively.Now just click on the Mass Pressurecharttab and
you havethe result.

When you go back to the o/oChange data sheet,if the cells still have the dasheddotted line
aroundthem showingyou that the informationhasbeencopied,hit the Esc (escape)key
to remove the dotted line before doing anothercopy & pasteinto the Chart datasheet.
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 PriceForecast

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Gann's Mass PressureChart (I neverpublishedthis!)

Each year,W.D. Gann would draw up a stick figure forecastof the stockmarket

averagesand various commodity futures in his Supplv & Demand newsletterservice.He

would provide commentary that would provide an outline of what he expectedthe market

to do. Gann said that the future was just a repetition of the past and one neededonly the

right beginning to predict the future. In latter years, Gann provided somethinghe called

the Mass PressureChart. In his advertisementfor his Master MathematicalTime Price

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 of the coursewherehe is outlining the variousMajor cyclesthat you shouldbe awareof.

I do not know for certainexactlywhat the Mass Pressurechart is. Although I havemy

own version,and havebeenableto duplicatemany of Gann's forecastcharts;I have

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never seenan actualMass PressureChart.My personalbelief is that it is a compositeof

the last 10,20,60 and 8O-yearcycles.As an example,when I madea forecastfor the year

1997,I lookedat the years1987,1977,1937and 19I7. I madenotesof whenthe major

highs and lows cameout in theseyearsand then went on to make a compositeof all these

yearsas a singlechart.This chartbelow is what you get. By the w&y, do not expectthese

forecaststo be accuratein termsof amplitude.In otherwords,they forecasttrendsand

extremesbut not the masnitudeof the next trend.

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The market first topped on March lzth as indicatedin the compositechart. The bearish

forecastinto early May only lasteduntil mid April before stocksregaineda bullish up-

trend. This tells us that the market is strongeror more bullish than the composite.The

High for the year came on August 6thbefore bearishcycles startedto weigh on the

market,which lines up with the forecast.There was also a secondhigh on October 10th

and a panic type break on October 22"d.The market had the strong bounce back as

forecastbut never testedthe panic lows again.Volatility lasteduntil November 22nd

around Thanksgiving when the up-trend accelerated.The market did sell off again

providing the buyng opportunity indicatedfor the winter solsticeon December2!", 22"d.

Overall, the forecastpredicted the generalmood of the market with uncanny accuracy.

Even though the forecast chart doesnot match the actual chart swing for swing the main
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 copy of Gann's Supply& DemandLetter for 1929online.The site is

My forecastchartlacks someof the detailsthat

www.webtrading.com/gannforecast.htm.

Gann'scontainedbecauseI only had monthly data for the year 1869as opposedto the

daily data.

Actual vs forecast

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-10

1997was a fairly easy yearto forecast.We were alreadyin a Bull Market and it

was a pretty safebet that we would repeatprimarily like the Bull marketsof 1987 and

1937. The fact that the market recoveredso well after the Asian currencypanic is another

indication that the bull market will continuein 1998.Gann's basic rules for ascertaining

the type of year the stock market will have on page F-6 of his "Forecasting"coursesay's

that years ending in 8 are typically bull market years. This is another supporting factor for

abullish 1998forecast.Gann also saysinthis samecourse,rule #1 -"Abull campaign

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to a high (+) in 1993andwill likely go to anotherhigh (+) in i998. u.hichhasbeena big

help for the bull market. From this informationalone,I would expecta major high for

stockson 4122198
and a major low on 9lll98. This will be one of the largercorrectionsin

this bull marketbecauseof a harmonywith other cycles.If you createa deceniala.k.a.

1O-yearpatternchart or a Mass PressureChart as illustratedearlierin the article,you will

seethat they will not indicatethis strongdown move. What is actuallyhappeningis that

Mars will move a 120ofrom the low onl0l22l97 to a high on516198.

This will complete

a Mars' low to high move. Mars will be negativefor the next 60ointo 9lll98 and Safurn

will alsobe negativefrom 4122198

becausethis dateis 120'from the Saturnlow in 1988,

completinga low to high swing.Mercury shouldadd to the down pressureafter 815198

when it passes2l Capricorn.Venuswill add to the negativepressureafter 717198

and will

bottom on9lll98 with Mars, aftermoving90ofrom 0o Taurusto 0o Leo. Mercurywill

alsobe 120" from 815198on9l3l98 supportingthe upward energyfor a strongbounce.

Both Venus and Mars startan up-movehearbut thereare also otherlargercyclesin play

that supportan up-movefrom 9lll98 but I will leavethesefor you to discover.Thereis a

chart on the following pagewith the cyclesillustrated.The following is anotherarticle

that I neverpublishedpertainingto forecastingwith planetarycycles.By the way, Saturn

will be down for 5-years,which indicatesthe importanceof the year 2003 again.
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informationtogetherthat would be truly valuableto the "Holy Grail" seeker.To prove

my sincerity,and alsothe value of this work, I will provide you with extremelyvaluable

informationin this article on Forecastins.

The main attractionwith Gann is forecasting!The idea that the future can be

predeterminedis a fascinatingconcept.To truly understandGann'smethods,you must

understandhis conceptof time. Gann saidthat "Time ProvesAll Things" and that "Every

movementin the marketis the resultof a naturallaw anda causewhich existslons

beforethe effect takesplace and can be determinedyearsin advance.The future is but a

repetitionof the past,as the Bible plainly states."

"The thing that hath been,it is that which shallbe; and that which is done is that

which shallbe done.andthereis no new thinssunderthe sun."Eccl 1:9.

Gann'sForecastingCoursedealswith the use of "Major Time Cycles".Gannbelieved

that everythingmovesin cycles(circles)as a resultof the naturallaw of actionand

reaction.He has said" By a study of the past,I have discoveredwhat cyclesrepeatin the

future." The problem that most studentsof Gann run into is that they get caughtup in

trying to predictprice. Gann alwayssaidthat betweenthe two, Time was much more

importantthan price. Knowing when to tradeis the key to Gann.I will now provide you

with a shortterm and a long-termexamplebasedupon the instructions:"Rules For Future

Cycles"by W.D. Gann:

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exacthits!

Dow30 JuplSat cycle

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(c (Ci @ @ @ (o € (o @ @ @ (o @ co o G @ @ €
@ @ @ € @ @ @ @ € @ @ co

N N

ForecastingMonthly Moves

A short-termexampleor forecastingrule is: "Add threemonthsto an importantbottom,

then add4, making 7, to get minor bottomsand reactionpoints."

Again, we haveto decodeGann's definition of time. Threemonthsis 360-degrees

of Venus. If you examinethe

of Mercury. Adding4,making 7 monthsis 360-degrees

recentlow of October18tn,1,ggg,youwill find heliocentricMercury at2l-degrees

we
Capricornand Venusis at 1-degree26'minutesif Gemini. Looking in an ephemeris,

will find Mercury againat2l-Capricornon Januaryl4'n,2000 (the exacttop of the Dow

Jonesbeforea l5o/o* correction).And Venusreturnsto l-26' Gemini on Tuesday,May

30th2000 for anotherpotentialturning point. At the time of this writing, March 15'h2000,

the Venus forecastis yet to be fulfilled so watch the market aroundthis day! I hope that

this informationprovesto be valuablein your questfor knowledge,as this will be my last

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 SpecialStock Market Cvcle Report
O January2002
Risk Disclosure

Sincewe live in a societythat hasto warn peoplethat Fire Logs are flammableand coffeeis servedhot, I
must provide you with a risk disclosurestatement.The purposeof this materialis to provide you with two
powerful cyclesthat I have discoveredto be valuablein the financialmarkets.Thereis no guaranteethat
thesecycleswill continueto work in the future,i.e. "Pastperformanceis not indicativeof future results".
You shouldunderstandthat thereis considerablerisk of loss in the StockMarkets,FuturesMarketsand
Option markets.Neither I, nor anyoneelseinvolved in the productionof this material,will be liable for any
loss,damageor liability directly or indirectly causedby the usageof this material.The datausedin this
The examplesand projections
materialis believedto be from reliablesourcesbut can not be guaranteed.
containedin this reportare not to be taken as "investmentadvice".Ultimately, you are responsiblefor all of
your investmentdecisions.If you are unwilling to acceptthis responsibility,then you shouldnot investin
the financial marketsat all.

Let's Get Started!

The l8-Year Super Bull & Bear Market Cvcle

Thereis a long-termcycle in the U.S. Equity Marketsof approximately17-18years.You will find that this
information alone is worth more than the meagercost of this report. Anyone that takestime and observes
the history of the stock averageswill certainlyseethis trend.The problemis that most peoplewill never
look but that is to your advantage!The Bible plainly statesthat there is "an appointedtime for everything,
3:1. The Stockmarketis no exceptionto this
and a time for every affair underthe heavens"-Ecclesiastes
rule! From the StockMarket Low in 19i 1, the Dow JonesIndustrialaveragesadvancedin "Super Bull
Market' fashion to the famous market top (and crash)of 1929.The Dow JonesIndustrial Average reached
a price of around386 in Septemberof 1929.From 1929to 1947,the marketwas in a 18-year"Super Bear
Market" cycle. This is when the countryexperiencedthe "Great Depression".The Equity marketsmade
their extremelow in July of 1932,which will prove to be importantwhen I discussthe 42-yearcycle. It is
also importantto point out that the Dow JonesIndustrialAveragenever reachedit's high of 386 during this
entire 18-year"SuperBear" cycle.From 1947to 1965,the Stockmarketwas once againin "Super Bull
Market" mode and the Dow JonesIndustrialAvg. broke a 1000for the very l " time. From 1965,we
enteredanother 18-year"Super Bear Market" cycle, which would last until late I 982. Again, it is important
to point out that the Stockmarketaveragesbasicallycould not exceedthe preceding"SuperBull Market"
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 A Closer Lsok at the Cvsls
t9lt-t947 @

42-yar low daskd vertical line.

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 The 42-Year CYcle

As briefly mentioned in the discussion of the 18-year cycle, major market lows tend to occur 42-43 years
apart.The basic pattern of the 42-year cycle is different than the 18-year cycle. In the 18-year cycle, we had
an even amount of up time compared with the down time, i.e. 18 years up and 18 years down. The 42'yeat
cycle is a bit different. It exhibits what cycle analysistslike to call right ffanslation. This simply meansthat
the cycle spendsan unequal amount of time going up than it does going down, which is probably the
"effect" of the combination of several other cycles. The basic pattern for the 42-year cycle in the Dow
JonesIndustrial Average is to advancefor 39-years and to decline verv hard for 3-years. One of the
potential reasonsthat the 1929 crashwas so severewas the phasingof the 18 and 42year cycles. They both
peaked in 1929 and startedtheir down cycles leading into the worst stock market correction in our history
(about a90Yodtop), which was also a major contributing factor to the "Great Depression".The Basic 42-
year cycle shapeis presentedin the following graph:

cycle
42-year

l-4r-year .yd;l

When we combinethis cycle with the 18-yearcycle, we gain a very interestinglong-term

perspectiveof our financial markets.Combining thesetwo powerful cycles even seemsto
account for the long flat periods that occur at periodic intervals in the history of our
equity markets.
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world, food was availablethroughoutthe land of Egypt". Knowledgeof this 7-yearcycle did not prevent
the famine from coming at its appointedtime. The knowledge simply allowed Josephto pIgpAIefor the
situation.Forewarnedis forearmed.Thereare othercyclesthat we could add to our model to get a more
accuraterepresentation
of marketbehavior,but for the majority of investors,this is really not necessary.
"My experiencehastaughtme that nothing can stopthe trend as long as the Time Cycle showsan up-trend.
Nothing can stop its declineas long as the Time Cycle showsdown"-W.D. Gann 45-yearsin Wall Street,
page3. I will point out, that therealso appearsto be a strong8-yearcycle in the data.For example,there
ar es om eve ry p ro n o u n c e ldo w s e v e ry8 -y ears(1942,1950,1958,1966,1974,1982,1990,
1998).N ext one
would be 2006. Sincethe 42-yearcycle is still up trendinguntil 2013,this could potentiallybe a nice place
to investin aggressivegrowh mutual funds for the next six to sevenyears.In a "Bear Market", you are
typically betteroff in "Growth & Income" style mutual funds or "BalancedFunds".Thesefundstypically
investin stocksthat pay dividends,which usuallyperform betterthan non-dividendpaying stockswhen the
equity marketsget weak. Also, they typically own somefixed incomeinvestments,suchas bondsand
preferredstocks,which help the fund weatherout the storm in "Bear Markets". As a simple rule, it's
typically betterto be in "AggressiveGrowth Funds" when the 18-yearcycle indicatesa "SuperBull
Market" and when a "SuperBear Market" is indicated;you may want to be more conservativein your
investmentapproach.Using a "Growth & IncomeFund", a "BalancedFund" or someothermore
conservativeinvestmentvehicleduring thesetough times may not be a bad choiceif you want consistent
exposureto the equity markets.For thoseinterestedin a possibleastronomicalcorrelationto the 42-year
cycle, I suggestthat you investigateheliocentricUranus.For thoseof you that want to continueto project
this compositecycle furtherout into the future,)ou can do so with simple addition.Again flat periodsare
causedwhen the cyclescanceleachother out, i.e. one is going up and the other is going down and strong
trendsare the result of both cyclesgoing in the samedirection.Therefore,after the 4Z-yearcycle low in
2016,the marketsshouldadvancein a sidewayspatternsimilar to the years 1932to 1947 and 1974to 1982.
However,this sidewaysmarketwill only last approximatelytwo yearsbecausethe 18-yearcycle should
bottom late in the year 2018 startingthe next "SuperBull Market", which shouldbe stronguntil 2036.
From 2036to 2055,the marketsshouldget stuckin anothersidewayspatternlike 1932to 1947followed by
a "panicky break" down into the year 2058. Becausethe 18-yearcycle bottomsrn2054, the 42-yearlow
may not come down as hard as it hashistorically,i.e. it will have lessmomentumthan usual.In any case,
basedon thesetwo cycles,the marketshouldbe extremelystrongfrom 2058 to 2072.I have includeda
to
chart at the end of this reportthat projectsthe 18-yearand42-yearcycle compositeout a full 1OO-years
the year 21021

Interest Rates- I shouldalsopoint out somethingaboutinterestrates.Many "financial experts"will claim

that declininginterestratescreatea strongeconomyand thus lead to a strongBull Market. While high
interestratestend to slow the economyand thus leadto weakermarketsor evenBear Markets.As a general
rule, this seemsto be true, but I needto point out that the 1929 crashand Great Depressiontook place when
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sequence.Add 8-yearsprojected1980as the next "businessactivity" top. Next add 9 yearsto 1980
projected1989as a "businessactivity" top. Next add 10 yearsprojected1999as a "businessactivity" top.
Now the cycle startsover againand we add 8-yearsto project2007 as a "businessactivity" top. Periodsof
"hard times and low prices",a good time to buy stocksand othervaluesand hold them until the next
"businessactivity" top and then unloadare basedon the sequence7-ll-9 yearsand repeat.The last low in
gives 1985,1996and 2005 asprojectedtimesto
was 1978.Adding the 7-11-9yearsequence
this sequence
buy basedon Benner'swork. "Years in which panicshave occurredand will occur again" are projected
with the sequence16-18-20yearsand repeat.Obviously,you would ideally want to unload stocks,mutual
funds or othervaluesprior to a panic and buy them back at lower pricesafter a panic hasoccurred.1965
was the last projectedpanic in this sequence.Adding the 16-18-20yearpatternto this dategives 1981,
1999 and2019as Benner's"yearsin which panicshave occurredand will occur again".Basedon these3
(Good Times,Hard Times,and Panics)one would have looked for a buying opportunityaround
sequences
the "panic" year 1981to hold into the projected"boom" year 1989.The next buying opportunitywould be
the "hard time" year 1996,which would be held until the "businessactivity" top in 1999whereone would
startunloadingstocksprior to the projectedpanic.Pleasestudythesesimple numberpatternsand examples
as SamuelBenner'swork hascertainlystoodthe testof time! A reprint of Benner'sbook can be ordered
from the SacredScienceInstitute(800) 756-6141or

The Januarv effect- I have heard many of the "experts" make mention of the Januaryeffect. Basically
there is a historical tendencyfor the market to rise in the month of January.I even rememberreading an
article in the Wall StreetJournal or InvestorsBusinessDaily that talked about some guy who had made a
fortune selling put options on the last trading day in Decemberso he could buy them back cheaperin
Januaryand make a profit. Peoplewho buy put options are betting the market is going down. He was
sellingthem, so he was expectingthe marketsto go up. If he was right, the optionswould become
u'orthlessand he would keep all the money he receivedfrom sellingthem. Anyway, this personmade
somethinglike $300,000doing this over the courseof 1994to 1998reinvestingall his profits eachyear. I
know for a fact that if he kept doing this samestrategy,that he had to financially destroyhimself in the
years 2000, 2001 and 2002.Now, Januarydoes have some predictive value for thosethat know how to read
the signs.Basically,if the last week in Januarycloseslower than the first week, thereis a tendencythat the
whole year is likely to finish lower. If the last week closeshigherthan the first week,thereis a tendenc)z
that the whole year will finish higher.Examples:The last week of January2000 closedlower than the first
week and the marketfinishedthat year lower. The last week of January2001 closedlower than the first
week and again the market endedthat year lower. The last week of January2002 closed lower than the first
week and it remainsto be seenif this particularyear will end lower. This is just a very basictool that can
be usedeachyear to get a feel for what the marketmisht do for the remaining 11-months.
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 SpecialWheatCycleReport
SpecialWheat Cycle RePort

OMay 2003,Daniel T. Ferrera

Introduction

"By the Law of Periodical Repetition,everythingwhich has happenedonce must happen

again and again and again-and not capriciously, but at regular periods, and each thing
in itsownperiod, not another's,and eachobeying its own law...thesameNature which
delights in periodical repetition in the skies is the lVaturewhich orders the affairs of the
earth.Let us not underratethe value of that hint."---Mark Twain

Throughoutthe ages,man has tried to predict his future and/orthe future

concerninghii surroundings.He hastypically failed miserablyand his failuresareburied
deepin the dust of history.From the storiesof legendaryfortunetellers,prophets,
oru.l.r, astrologers,mystics,numerologistsand seerswe are left to believetheir claimed
possessionof supernaturaloccult powersthat enabledthem to foreseeinto the future.We
are certainlynot without their counterpartstoday! There arepsychicswith televisionand
radio shows,astrology,taro and numerologywebsites.You can call a 1-900numberfor
just aboutany type of "mystic service".They all play on our latentsuperstitionsthat are
within all of us, making peoplesomewhatdependenton their predictionsof the next
"political assassination", "earth quake","airline tragedy",,"Hollywood divorces","your
love life", "career",etc.Mysticism is not the way to accuratelypredictthe future.The
secretto forecastinglies in the abovequotefrom Mark Twain. The law of Periodicity
provides man with the opporfunity to anticipate the fufure mathematicallyand
icientifically. Thereis a sciencewhich dealswith the behaviorof recurringphenomenon
at reasonablyregularintervalsand this sciencemay ultimately enableman to predict,
mathematicallyand accurately,theeventsof tomorrow! Anyone who is willing to study
GraphicalAnalysis,Time SeriesAnalysis and Cycle Theory is capableof creatinghighly
accurateforecaitsof the future.The consequences by this
and responsibilitiesrepresented
sciencearejust too staggeringto fully comprehend.

What is a Cycle? Acycle is simply a rhyhm that repeatswith predictableregularity.We

all know that it is cold in the winter, hot in the summerand mild in the spring and fall
becauseof the cycle of the four seasons.If you feel your heartbeat,you are feeling
anotherrhyhmic cycle; i.e. somethingthat occurs"again and again" at a more or less
uniform time interval. We know the cycle of the Z4-houralterationof day and night. We
know that the moon reappearseverytwenty-five hours.Women experiencea regular
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 From a quick study of the chartson the precedingpage,it is quite obviousthat
import highs and lows are separatedby a period of 7.44-years.The high pricesin this
cycle interval are very pronounced,which shouldbe extremelyuseful informationfor
wheatproducersin this countryand aroundthe world. Simply adding7.44-yearsto the
high price of cashwheat reachedin late April of 1996projectsa potentialhigh to be
reachedaboutJuly of 2003. Similarly, u significantlow price shouldbe reachedaround
mid-June 2007if this cycle continuesto repeatas it hasdone in the past.This type of
informationprovidesthe wheat farmerwith the foreknowledgeof when to expecthigh
pricesin his crop. This would thereforealso allow him to preparefor the anticipatedprice
declineby eitherhedgingin the futuresor optionsmarketsor possiblyevenproducing
somethingelseprotectinghimself from the event.Becausewheat farmersare always
naturallylong the wheatmarket as a resultof actuallyhaving the physicalwheat to sell, a
hedgestrategythat involvesselling out of the money call optionsand using the premium
receivedto purchaseput optionsmay be worth your investigation.This strategyis also
known as a "cost free hedge".

As was statedearlier,thereare severalcyclesin this marketthat canbe isolated

and projectedinto the future.It is not my intentionto provide too much detail,as this is
just a simplereportfocusingon the big trendsin the wheatmarket.However,to make

thingsmore interesting,giving you an idea of how much funher this type of analysiscan
be taken,I will provide you with four additionalcycles.Re-examiningthe cashwheat
9.7-years,5.36-yearsand 3.65-
weekly chart,thereappearsto be rhyhms of 19.3-years,
yearsin length.The chart on the following pagewill show thesecyclesalongwith the
7.44-yearcycle and the coffespondingcashwheat chart.In addition,the summationwave
of all five cycleswill be displayedin "red" on top of the wheatprice data.Furthermore,I
will provide you with the last bottom madein eachcycle so that you may projectthem
into the future yourself to anticipatethe highs and lows of this market.
Cvcle Last Bottom
19.3-year May 1987
9.7-year December 1998
7.44-year February2000
5.36-year December 1998
3.65-year September2001
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 May/June
July2003 2011t
I Y

Aug/Sept
20n8

t ' * f ' i - f i l , l l l . * o r - t ! l 0 l f : A = A m E E J F ! - 1 E t ' - c D r

if, H h H h B h ts ts ffi H ts E E E E E E H F F F F
r r r r r r r r r - r !- r r- r F I N N N ry q q

H E E E h E A R H F F H E E h E H F E E
r r r - r r r r r r r r r r r r F r
F

Once againI have made every attempt to make this information affordable so that
it reachesthosethat need it most. I hope that it has provoked new thoughtsand ideasyou
mayhave about our seeminglyrandomexistence.If you are a studentof W.D. Gann, I
hope that thesereportshave aided you in your searchfor knowledge.I believe that what I
have presentedin this material is certainly relatedto W.D. Gann's "Master Time
Factor". Over the last 10 years,I havepersonallyspentwell over $30,000in obtaining
knowledge aboutthe financial markets.Most of the information was not worth the price I
paid for it. This cycle work hasbeen an extremelyvaluableroadmapfor both my long
term and intermediateterm investmentdecisions,which in my opinion makesthis small
little report worth severaltimes the small sum of money it took you to obtain it! You
 ',(1e1eu41n 'asod-rnd
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Ielcueugeql ur $lJo^\ {11eerl?q^A8uru.ree1 {euou u,^Ao fur go sJellopJo spu€sno{}
uodn spuesnoqlluadse^uq 1 'e.ro;eqpresfpeerle e^BqI sV 'plo8 ur lq8rernslr r{uo^\ s.}r
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or€cno.( esoqlot uoder srql reJarnof leql IS€ I ure8y 'fe,n plo orueseql ur slelretu
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no,( 'fllueuodtut orolN 'suu3;o141 eql pu€ splrqcqlo5eql se qcnsfqlleem ,(leurerlxeoql
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investmentdecisions.If you are unwilling to acceptthis responsibility,then you should
not speculateor hedgein the commoditymarketsat all.

I sincerelywish you greatsuccessin the near future concerningyour life, happiness,

personalfreedom,and of course,in your financial decisionsas well.

SincerelyYours,

Daniel T. Ferrera
 'O'1!\
srsvJfluo'{ TYnNINVS5NNIVO

I XrONrddY
 'W'.D.
Gann's Annual Forecasts
During his career,W.D. Gannmadeannualforecastsavailableto the public for a variety
of markets,including the StockMarket averages,grainsand cotton.Theseforecastssold
for $100duringthe greatdepression
in the 1930's,which would be equalto payingover
a $1000in today'smoney. Gannalwayskept the basisof this forecastingtechnique
veiled in secrecy,primarily due to the simplicity of the method.After all, if the general
public knew how theseforecastswere produced,they probablywould not havebeen
willing to pay suchhigh pricesfor them. The basisof the methodis in my opinion almost
exactlythe techniquedescribedin ProfessorWeston'sbook "ForecastingThe New York
StockMarket" alsoknown as the GeometricalSystemof Forecasting.If you make a
studyof Gann's ForecastingCourseand seriouslycompareit to Weston's,I think you
will find them amazinglysimilar. For example,both Gann and Westonbelievedthat the
prior 10-yearand2}-year intervalsor cycleswere the key to anticipatingwhat the market
would do in the presentyear.Although Westonusedmonthly data,and Gannuseddaily
data,you will find that their respectiveforecastsfor Ig29 arebasicallyidenticalin terms
of the generaltrend of the market.I have statedbeforethat the future is but a repetitionof
the past;therefore,to makeup a forecastof the future,you must refer to the previous
cycles.Gannwrote in his "Master ForecastingCourse"that: "The previous 10-yearcycle
and the 2}-year cycle havethe most effect in the future,but in completing a forecast,it is
bestto have 30-yearspastrecordto checkup, as importantchangesoccur at the end of
3O-yearcycles".ProfessorWestonbasicallyillustratedthe samething and specifically
statedthat he believedthe phenomenonwas causedby the angulardistancesbetweenthe
planetsJupiterand Saturn.When you compareProfessorWeston's 1929forecastwith
Gann's,you will seethat ProfessorWestonsimply averagedout the years1878,1889,
1898,1909,and 1919.Gannutilizedthe years1869,1909,lglg. Now the main
differencein the two beingthat Westonusedthe years1878and 1898.ProfessorWeston
explainedin his work that due to the varying speedsof Jupiter,Saturnand the apparent
retrogrademotion as viewed from the Earth, thatat certainperiods,somecalendaryears
will repeatas both the endingof a prior cycle and the startof a new cycle while other
yearsare skippedover entirely.Now, sinceGannwas very much into numerologyas well
as astrology,he most likely eliminatedthe yearsendingin "8" to make his forecast.The
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 Apppxurx 2

'W'.D.
Gexx's ORIGINALFonECASTINGCounsn
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3O-YEARCYCLE:

The 3O-yearcycle is very importantbecauseit is one-halfof the 60-yearcycle or GreatCycle and contains
three 10-yearcycles.In making up an annualforecastof a stock,you shouldalwaysmake a comparison
with the record30 yearsback.

2O-YEARCYCLE:

One of the most importantTime Cyclesis the 2}-year cycle or 240 months.Most stocksand the averages
work closerto this cycle than to any other.Refer to analysisof "20-yearForecastingChart" given later.

15- Y E A RC YC L E:

Fifteenyearsis three-fourthsof a 2O-yearcycle and most importantbecauseit is 180monthsor one-halfof

a circle.

1O - Y E A RC YC L E:

The next importantmajor cycle is the 10-yearcycle. which is one-halfof the 2}-year cycle and one-sixthof
the 6-yearcycle. It is also very importantbecauseit is 120 monthsor one-thirdof a circle. Fluctuationsof
the samenatureoccur which produceextremehigh or low every 10 years.Stockscome out remarkably
closeon eacheven 10-yearcycle.

7-YEAR CYCLE:

This cycle is 84 months.You shouldwatch 7 yearsfrom any importanttop and bottom.42 monthsor one-
half of this cycle is very important.You will find many culminationsaroundthe 42""month. 2 1 monthsor
% of this cycle is also important.The fact that somestocksmake top or bottom 10 to 11 monthsfrom the
previoustop or bottom is due to the fact that this period is one-eighthof the 7-yearcycle.

There is an 84-yearCycle, which is 12 times the 7-yearCycle. that is very importantto watch.One-halfof
this cycle is 42 years- 1/+is 2 1 years,and 1/8 is I0 t/zyears.This is one of the reasonsfor the period of
nearly I 1 yearsbetweenthe bottom of August, I92I and the bottom of July. 1932.A variationof this kind
often occursat the end of a GreatCycle or 60 years.Bottomsand tops often come out on the angleof 135
degreesor aroundthe 135tnmonth or 11 l/+-!eerperiod from any importanttop or bottom.

S-YEAR CYCLE:

This cycle is very importantbecauseit is one-halfof the 10-yearcycle andYoof the 2}-year cycle. The
smallestcompetecycle or work-out in a marketis 5 years.

MINOR CYCLES:

The minor cyclesare 3 yearsand 6 years.The smallestcycle is one year,which often showsa changein the
10thor 1lthmonth.

RULES FOR FUTURE CYCLES

Stocksmove in 1O-yearcycles,which are worked out in 5-yearcycles- a 5-yearcycle up and a 5-year

cycle down. Begin with extremetops and extremebottomsto figure all cycles,eithermajor or minor.

R u l e l - A b u l l c a m p a i g n g e n e r a l l y r u n s 5 y e a r s - 2 y e a r s . ulpy,e a r d o w n , a n d 2 y e a r s u p , c o m p l e t i n g a 5 -
year cycle.The end of a 5-yearcampaigncomesin the 59tnor 60tnmonths.Always watch for the changein
the 59tnmonth.
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In a bearmarket,the minor trend may run up 3 to 4 months,then reverseand follow the main trend,altho,
as a generalrule, stocksnever rally more than 2 months in a bear market; then stafi to break in the 3'd
month and follow the main trend down.

FORECASTING WEEKLY MOVES

The weekly movementgivesthe next importantminor changein trend,which may tum out to be a major
changein trend.

In a bull market,a stockwill often run down 2 to 3 weeks,and possibly4, then reverseand follow the main
trend again.As a rule, the trend will tum up in the middle of the third week and closehigher at the end of
the third week,the stock only moving 3 weeksagainstthe main trend.In somecasesthe changein trend
will not occur until the fourth week; then the reversalwill come and the stockclosehieherat the end of the
forth week.

Reversethis rule in a bearmarket.

In rapid marketswith big volume, a move will often run 6 to 7 weeksbeforea minor reversalin trend,and
i n s o m e c a s e sl i,k e l g 2 g , t h e s e f a s t m o v e s l a1s3t t o l 5 w e e k so r t / + o f a y e a r . T h e s e a r e c u l m i n a t i o n m o v e s
up or down.

As thereare 7 daysin a week and seventimes sevenequals49 daysor 7 weeks,this often marks an
important turning point. Thereforeyou should watch for top or bottom aroundthe 49thto 52ndday, altho at
times a changewill starton the 42"dto 45'hday. becausea period of 45 daysis 1/8 of ayear.Also watch for
culminationat the end of 90 to 98 days.

After a markethas declined7 weeks,it may have2 or 3 shortweekson the sideand then tum up, which
agreeswith the monthly rule for a changein the third month.

Always watch the annualtrend of a stock and considerwhetherit is in a bull or bearyear.In a bull year,
with the monthly chart showingup, thereare many times that a stockwill react2 or 3 weeks,then rest 3 or
4 weeks,and then go into new territory and advance6 to 7 weeksmore.

After a stock makestop and reacts2 to 3 weeks, it may then have a rally of 2 to 3 weeks without getting
abovethe first top, then hold in a tradingrangefor severalweekswithout crossingthe highesttop or
breakingthe lowest week of that range.In casesof this kind, you can buy nearthe low point or sell nearthe
high point of that rangeand protectwith a stop lossorder 1 to 3 points away.However,a betterplan would
be to wait until the stock showsa definitetrend beforebuying or selling;then buy the stockwhen it crosses
the highestpoint or sell when it breaksthe lowestpoint of that tradingrange.

FORECASTINGDAILY MOVES

The daily movementgivesthe first minor changeand conformsto the samerules as the weekly and
monthly cycles,altho it is only a minor part of them.

In fast marketstherewill be a2-day move in the oppositedirectionto the main trend and on the third day
the upward or downward coursewill be resumedin harmony with the main trend.

A daily movementmay reversetrend and only run 7 to 10 days;then follow the main trend again.

During a month, natural changesin trends occur around

6thto 7th 14thto 15th 23'dto 24th

9thto loth l9'h to 2o'h 29thto 3 1"

Those minor moves occur in accordance with tops and bottoms of individual stocks.
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No. I in a new decadeis a yearin which a bearmarketendsand a bull marketbegins.Look up 1901,1911,
t 92t .

No. 2 or the secondyear,is a yearof a minor bull market,or a rally in a bearmarketwill startat sometime.
See 1902, 1912, 1922, 1932.

No. 3 startsa bear year, but the rally from the 2ndyearmay run to March or April before culmination, or a
declinefrom the 2"d yearmay run down and make bottom in Februaryor March, like 1933.Look up 1903,
r9r3,1923.
No. 4 or the 4thyear,is a bearyear,but endsthe bear cycle and lays the foundationfor a bull market.
Compare1904,1914.

No. 5 or the 5thyear,is the year of Ascension,and a very strongyearfor a bull market.See1905,1915,
1925,1935.

No. 6 is a bull year,in which a bull campaignwhich startedin the 4'hyearendsin the Fall of the year and a
f as tdec lin es ta rtsS
. e e1 8 9 6 ,1 9 0 6 ,1 9 1 6 ,1926.

No.7 is abearnumberandthe 7'hyearis abearyear,because84 monthsor 84 % degreesis 7/8 of 90. See

1897,1907,1917,but note 1927wasend of a 60-yearcycle,so not much decline.

No. 8 is a bull year.Pricesstartadvancingin the 7thyearand reachthe 90'hmonth in the 8'hyear.This is

very strongand a big advanceusuallytakesplace.Review 1898,1908,1918,1928.

No. 9 the highestdigit and the 9'hyear,is the strongestof all for the bull markets.Final bull campaigns
culminatein this year after extremeadvancesand pricesstartto decline.Bear marketsusually startin
September to Novemberat the end of the 9'nyearand a sharpdeclinetakesplace.See 1869,1879,1889,
1899, I 909, I9l9 , and 1929 - the year of the greatestadvances,culminatingin the fall of the year,followed
by a sharpdecline.

No. 10 is a bearyear.A rally often runs until March and April; then a severedeclineruns to Novemberand
December,when a new cyclebeginsand anotherrally starts.See1910,1920,1930.

In referringto thesenumbersand theseyears,we meanthe calendaryears.To understandthis, study 1891

to 19001 , 9 1 1 t o1 9 2 0 , l 9 2 I t o 1 9 3 0a, n d1 9 3 1 t o1 9 3 9 .
, 9 0 1t o 1 9 1 0 1

The 1O-yearcycle continuesto repeatover and over,but the greatestadvancesand declinesoccur at the end
of the 2}-year and 30-yearcycles,and againat the end of the 5O-yearand 60-yearcycles,and againat the
end of the 50-yearand 60-yearcycles,which are strongerthan the others.

IMPORTANT POINTS TO REMEMBER IN FORECASTING

TIME is the most importantfactor of all and not until sufficienttime hasexpireddoesany big move, up or
down, start.The Time factor will overbalanceboth Spaceand Volume. When Time is up, spacemovement
will startand big volume will begin, eitherup or down. At the end of any big movement- with monthly,
weekly or daily - Time must be allowed for accumulationor distribution.

Considereachindividual stockand determineits trend from its position accordingto distancein time from
bot t omt o t o p . E a c hs to c k sw o rk so u t i ts 1 , 2,3,5,7,I0, 15,20,30,50,and60-yearcycl esfrom i ts ow n
baseor bottomsand tops,regardlessof the movementsof other stocks,eventhosein the samegroup.
Therefore,judge eachstock individually and keepup weekly and monthly chartson them.

Never decidethat the main trend haschangedone way or the otherwithout consultingthe anglesfrom top
to bottom and without consideringthe positionof the marketand cycle of eachindividual stock.
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 thenext cyclebeginsat 1881andrunsto 1900,

the next cycle beginsat 1901and runs to 1920,

the next cycle beginsat 1.921and runs to 1940.

By placing the monthly high and low pricesfor eachof those2)-year periodsaboveeachother,it is easyto
seehow the cyclesrepeat.The year of the cyclesare markedfrom " 1" to "20." Studythe chartand note
what happenedin the 8tnand 9tnyear of eachcycle - that extremehigh priceshave alwaysbeenreached.
For example:

1929FORECAST:

According to my discoveryof the 60-yearcycle, I figured that 1929would repeatlike 1869, 1909,and
1919.Looking back 20 years,we find that top was reachedin August, 1909,and 60 yearsbefore,top was
reachedin July, 1869.If you will readmy Annual Forecastfor 1929,you will seethat I had figured the top
must come not later than the end of August and statedthat a "Black Friday" would come in September.
Following strictly the 1869top, the top would have come in July, 1929,and somestocksdid maketop at
that time. Following the 1909top, we could expecttop in August,and the actualhigh of the averagesand
many individual stockswas reachedon September3,1929. Going back to 1919,we find that the Averages
made first top in July and a big declinefollowed, but extremehigh was madein the early part of
November.

From all of thesetops- 1869,1909,and 1919- sharpdeclinesfollowedin the fall of the year,just as they
did in 1929.Thereforeyou seehow easyit was to follow this greatadvanceand determinewhen it would
culminate.There is no otherway, outsideof using the 20 and 60-yearcycle that we could have forecastthis
greatbull campaignand its culminationso closelyin 1929.

VS. 1929-33:
1869-73

After the 1869top, stockscontinuedto declineand reachedlow in November, 1873.Seehow many other
bottoms were reachedaroundthis time in other cycles.After the big decline from 1929, nottcethat in
October,1933the last low was reachedon the Dow-JonesAverages;then followed an advanceto new high
levels,crossingthe top of July, 1933.

1935F O R E C A ST :

Figuring out the Forecastfor 1935,we seeon this 2}-year Chart that we are runningagainst1855, 1875,
1895,1915;therefore, we look to seewhat happenedin thoseyears.We find that in 1895the high was
reachedin September,in 1915the high of the year was reachedin December.

W efi ndthat
i nthe 5' hzoneorthe1O-yearcycl es.
T hen,look b a c k a t 1 8 6 5 ,1 8 8 5 ,1 9 0 5 ,a n d 1925,theyears
in 1865the high was reachedin October;in 1905the high was in October;in 1925the high was in
November.

Then, we would havea good guide in making up the Forecastfor 1935and would know what monthsto
watch for top and a changein trend.My Annual Forecastfor 1935,which was madeup in October,1934,
top for November15-16,1935.
indicatedtop for October28 and a secondary

There are other ways of using the Chart to advantage.One method of determiningthe trend is to compare
the yearsof previouscyclesin the samezone.For example:After the Dow-Jones30 IndustrialAverages
crossed108 in Muy, 1935they were abovethe averug.high price of all the previousyearsin the 15th-year
zone.Therefore,the market indicatedhigher prices and showedthat there would be a bull campaign.

1936F O R EC AS T :
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out four yearsfrom the 1932 low and 6 yearsfrom April, 1930high, all of which are indicationsof
important changesin trend.

We know that presidentialnominationswill take placein July, thereforethis is a month to watch for
uncertaintiesand declines,unlesssharpdeclineshavecome beforethat time. The endingof the cycle from
1896in August is quite importantand regardlessof how high or low stocksare,thereare likely to be some
sharpdeclinesbeforethe end of August.Again, in the last half of September,uncertainconditionsand
possibilityof sharpdeclinesare indicated.This may mark the last low and an electionrally may startif
thereare indicationsof a changein Administrationby the electionof a Republicanpresident,which, I
believe,at this writing, will happen.

September,October, and November are all important becausethesemonths are 7 yearsfrom the top in
September,1929andT yearsfrom the panicky declinein Octoberand November, 1929.I would expecta
rally to takeplace after the electionin November,which would last anywayuntil the early part of
December.If conditionsshow signsof improvementand if peopleare satisfiedwith the man elected,then
the advancewill probablycontinueinto December,with high pricesaroundthe end of the year.

This is merely a generaloutline I am giving without completingall of my calculationsand making up the

Annual Forecastin detail.

INDIVIDUAL STOCKS:

I havetold you beforethat you shouldnot dependupon the Averagesto forecastthe trend of individual
stocks.TheseAveragesgive you the generaltrend,and while many stockswill follow this averagetrend,
you shouldfigure out eachstock individually and let its positionon geometricalanglesand time periods
determinethe differentmonthsin the year when the stock is likely to make many tops and bottoms.

Take any individual stock and make up a chart like the Master ForecastingChart, carrying it across10
yearsor 20 years,and seehow its tops and bottomscome out. I havemadeup a chart of the 1O-yearcycles
on U. S. Steeland also a chart of the 2)-year cycles,and am alwaysglad to furnishthesechartsto students
of my Courseon Forecastingso that they may studythe individual stocksand be convincedthat the theory
will work on an individual stock evenbetterthan it will work on the Averages.

No man can studythe Master2)-year ForecastingChart and the cycleswithout being convincedthat the
time cyclesdo repeatat regularintervalsand that it is possibleto forecastfuture marketmovements.By
studyingResistanceLevels,GeometricalAngles,and Volume of Salesin connectionwith the Cycles,you
can determinewhen the trend is changingat the end of campaigns.

FAST MOVES AND CULMINATIONS AT IMPORTANT TIME PEzuODS

It is importantto go over the monthly chart of Industrialor Railroadaveragesor any individual stockand
look up the months when fast advancesand fast declineshave occurredand figure the number of months
from any important top and bottom.

Watch how bottoms and tops come out on the important GeometricalAngles or proportionateparts of the
circle of 360 degrees,which are:

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561/+ 3261/+

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38 3/q 67 1/z rL2 7/z 146 1/+ tgt 1/+ 236 1/+ "z7o ]of, 3/a 348 3/+
*12o *3r5 *36o
"45 78 s/+ r57 r/z 2o2 Uz "z4o z8t Vq

(*very important)
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l9l9 - A fast advancedstartedin Februaryand lasteduntil July. This was 27 to 32 monthsfrom the 1916
top, and 50 to 55 monthsfrom 1914low. February,1919was 135monthsfrom the 1907low and 270
monthsfrom 1896bottom.The 135thand 270'hmonths,being 3/8 and 3/oof the circle, were very important
for changesin trend and startingof moves.Octoberand early November- Final top, 36 monthsfrom 1916
top. November- A panicky decline,23 monthsfrom 1917 low, 59 monthsfrom 1914 bottom (end of a 5-
year cycle), and 279 monthsfrom 1896bottom.

1920- Novemberand December- A fastdecline,12 to 13 monthsffom 1919top, 35 to 36 monthsfrom

1917low,72 monthsfrom 1914bottom,157monthsfrom 1907bottom,and 291 to 292 monthsfrom 1896
bottom.

l92I - August- Low of bearcampaign,21 monthsfrom 1919top, 80 monthsfrom 1914bottom,165

monthsfrom 1907bottom,and 300 monthsfrom 1896bottom.

1924- May - The last low as made,from which a fast advancestartedone of the greatestbull campaigns
in history,endingin 1929.This was 54 monthsfrom the 1919top, 33 monthsfrom I 921 low, 113 months
from 1914low, and 333 monthsfrom 1896low.

1926- March - A big decline,with somestocksdeclining 100 points.This was 23 monthsfrom May,1924
low,29 monthsfrom 1923low,55 monthsfrom 1921low, 135monthsfrom 1914low, and 355 months
from 1896low. August- Stocksreachedthe highestprice up to that time, the Dow-JonesIndustrial
Averagessellingat 166.This was 27 monthsfrom May , 1924low, 34 monthsfrom October,1923low, 60
monthsfrom 1921bottom,225 monthsfrom 1907,and 360 monthsor 30 yearsfrom 1896iow. Then a 20
point declinefollowed to October,which was 2 monthsin a new 30-yearcycle from the bottom of 1896.

1928and 1929wereyearsof someof the fastestmovesin history.

1929- May to September- One of the fastestmoves,advancingnearly 100 points on Averages.Final high
in September.This was:

118m ont h sfro m 1 9 1 9to p . 97 monthsfrom August, 1921low.

240 monthsfrom 1909top. 1 7 7mo nthsfrom 1914l ow .

42 monthsfrom March, 1926low. 262 monthsfrom 1907low.

64 monthsfrom May 1924bottom. 37 monthsin the secondcycle of 30 yearsfrom 1856low.

71 monthsfrom October,1923 low.

Note the strongtime angleson the Monthly Chart running out in Octoberand November,
, h i c h a r e3 2 , 4 0 , 4 5 , 6 7y r , 7 5 ,1 2 0 ,1 8 0 .
1 9 2 9w

1930- April - Last top beforeanotherbig decline.This was 49 monthsfrom March, 1926low, 71 months
from 1924low, and 78 monthsfrom 1923 low. May - A sharpdecline.This was 270 monthsfrom 1907
low and 45 monthsin the secondcycle from 1896low. Then therewere fast declinesto 1931.

1931 - September- A declineof 46 points on the Dow-JonesAverages.This was 24 monthsfrom the 1929
top, 95 and 86 monthsfrom I 923 and 1924lows, 121 monthsor the beginningof a new 10 year cycle from
the 1921low, 201 monthsfrom 1914low, and 61 monthsin the new cycle from 1896.

1932- July 8th- Extremelow of the bear campaignwas reached.This was 71 monthsfrom in the new
cyclefrom 1896low. 131monthsfrom 1921low, 105 and 96 monthsfrom 1923 and 1924lows,27 months
from April, 1930 top, and34 months from the 1929 top. August and September- A sharp,fast advancein
stocks.This was 35 and 36 monthsfrom 1929 top,28 and 29 monthsfrom April, 1930 top,72 and73
monthsin the new cycle from 1896low, and I 32 to 133monthsfrom 1921low.
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The years 1934 and 1935,endingin May, were on 142 and 143,and 1936comesout on the 45 degreeangle
at the grand-centerin the 8'nZone and at the half-way point of the 2nosquare,going to Yzof the total square,
which indicatedgreatactivity.

You can alsousethis chartfrom October12.1492,when ColumbusdiscoveredAmerica.1892was end of

400 yearsor squareof 20. 1932was 40 yearsin the new squareof 20.

You can usethis Squareof 20 for time periodson individual stocksand for price resistancelevels.

If you will studythe weeks,months,as well as the years,and apply them to theseimportantpoints and
angles,you will seehow they have determinedthe importanttops and bottomsin the past campaigns.
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General Outlook for 1929
This year occursin a cycle, which showsthe endingof the bull marketand the beginningof a prolonged
bear campaign.The presentbull marketcampaignhas lastedlongerthan any previouscampaignin the
history of this country. The fact that it hasrun longerand priceshave advancedto suchabnormalheights
meansthat when the declinesetsin, it must be in proportionto the advance.The year 1929will witness
somesharp,severepanicky declinesin many high priced stocks,

The history of the stockmarkethas alwaysbeenthat it discountsprosperityand that in doing so prices

always advancetoo far. In other words, the stock market runs too far aheadof prosperityand the first
declineis only a readjustmentback to what stocksshouldsell accordingto their merit and investment
return.Then,when businessdepressionsetsin and earningsstartto show a falling off, stockpricescontinue
to go lower, discountingunfavorablebusinessconditions.

But suchgroupsof stocksas the oils, sugars,rubbersand someof the agriculturalstocks,whichhave been
depressedand declinedwhile other stocksadvanced,will recordmuch higherpricesin 1929.New and
popularindustrieswill continueto prosper,suchas,radio, airplane,chemicaland electricalconcerns.This
is the electricalage.Peopletake quickly to new inventions,especiallythosewhich provide for the
convenienceand comfort of living. This will increasethe earningsof concernsmanufacturingnew
cleotrical appliances.

Many stockswill be distributedand will work lower while the stocksin strongposition work higher.With
sucha varied list of stocksrepresentingso many industriesin differentpartsof the country,it is not
reasonableto supposethat they would follow the sametrend by any means.

More and more businessis gettinginto the lines of massproduction,mergersand consolidation.The big
companiesare get-tingthe businesswhile the smallercompaniesfind it harderto get businessenoughto
return a fair amount on their capital stock.

During the early part of the year,businessconditionswill not be up to generalhopesand expectations.In

the springand summer,businesswill improve and the outlook generallywill be cheerful. But againin the
fall of the year,depressionwill set in and unfavorablebusinessconditionswill causebig declinesin stocks.
Money rateswill be high the greaterpart of the year.

During the year 1928,the public hasenteredthe stockmar-keton the largestscaleever known in history.
Foreignershave bought our stocksmore than at any time since or prior to the outbreakof the World War.
The Americanpublic is no longer making safeinvestmentsin stocks.They havethe gamblingfever and are
buying everythingregardlessof price, simply buying on hopethat stockswill continueto go up. This is a
dangeroussituationand has alwaysresultedin a big decline.Therewill be no exceptionin this case.

The man who makesmoney buying stocksin 1929will have to usegreaterdiscriminationthan ever before
in selectingthe right stocksto buy. When once stockshave reachedfinal top and start on the way down,
they will continueto work lower and rallieswill get smaller.Thosewho hold on and hopewill havebig
losses.The marketswill move over a very wide rangeand sharp,severede-clineswill be followed by quick
rallies.It will be necessarymost of the time for a traderto be very nimble and changepositionquickly in
order to take advantageof the opportunitiesas they develop in an active market.

WHAT WILL CAUSE THE NEXT DEPRESSION IN BUSINESSAND

DECLNE N STOCKS?
PROSPERITY! The greatwave of prosperify,which this countryhasexperiencedduring the past few
years,hasbeenin many ways responsibleto the stockmarket.The greatincreasein the value of stockshas
increasedthe borrowingpower of variouscompaniesand haspermittedexpansionand even inflation. The
pendulum has swung so far in one direction that many people have forgotten that it can ever swing back in
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lose confidenceand all startto sell, it requiresno stretchof imaginationto picturewhat will happen.When
the time cycle is up, neitherRepublican,Democrat,nor our good PresidentHoover can stemthe tide. It is a
natural 1aw.Action equalsreactionin the oppositedirection.We seeit in the ebb and flow of the tide and
we know that from the full bloom of summerfollows the deadleavesof winter. Gamblersdo not think;
they alwaysgambleon hope and that is why they lose.Investorsand tradersmust pauseand think, look and
listen,and get out of stocksbeforethe greatdelugecomes.

WAR: Our greatprosperityhas causedjealousythroughoutthe world, and as conditionsget worse in

foreign countries,greedand,jealousywill leadto war. It is the hungry dog that startsthe fight. A study of
the rise and fall of nationsshowsthat when any country enjoysunusuaiprosperityfor a long period of time,
war is one of the main causesof the startof depression.While we heara lot of talk aboutpeace,the facts
show that many of the leadingforeign countriesas well as our own country,are spendingmore money
preparing for war than ever before in their history. When a man or a country is armed and getsready to
fight, he usually getswhat he is ready for.

FOREIGN COMPETITION: Germanyis rapidly coming back and competitionfor tradewill be keener
in the coming year.Many of the other foreign countriesare making desperateeffortsto regaintheir pre -
war tradeand will makeprogressalong theselines,which will hurt our business.

INDUSTRIAL STOCKS MAIN TREND OR MAJOR SWING

The IndustrialCurve this year is basedon the Dow Jones'30 IndustrialStock Averages.Previouslythe
Dow Jones'Averages, which are publishedby the Wall StreetJournal,were basedon 20 industrialstocks,
but in the latterpart of 1928,they changedfrom 20 to 30 and our Curve is basedon the 30 Industrial
Stocks.The stocksnow usedin theseAveragesare:Allied Chemical,Am.Can, Am.Smelting,Am Sugar,
Am.TobaccoB, Atlantic Refining.BethlehemSteel,Chrysler,Gen. Electric,Gen.Motors, Gen. Ry, Signal,
Goodrich,Int. Harvester,Int. Nickel, Nash Motors, Mack Trucks,North American,Paramount,Postum,
Radio, SearsRoebuck,StandardOil of N. J., TexasCorp. TexasGulf, Union Carbide,U.S. Steel,Victor
Tk., Westinghouse, Woolworth, Wright Aero.

From the low level in August |g2l,to the high level in November 1928,the 20 IndustrialStocksrecorded
an advanceof about230 points,the greatestadvancein history.The fact that theseAveragesadvanced
nearly 100pointsduring 1928is unparalleled in history.This yearis like 1906,1916,and 1919,when such
violent fluctuationswere witnessedand largevolume of tradingtook place,only to be followed the year
after by a panicky decline.

The minimum betweenextremehigh and extremelow during 1929 for the 30 Industrialstockswill not be
lessthan 50 points and the maximum fluctuationmay be as much as 90 to 100points.This meansthat
many of the high-pricedstockswill fluctuate150to 200 points betweenextremehigh and extremelow
prices.The lower priced stockswill move in a narrowerrangeand will not make as much as the minimum
betweenextremehish and low.

Most of the Dow Jones'30 IndustrialStockswill follow Curve #1 very closely.The high point for most of
thesestockswill be reachedaroundJanuary12th.After that time, pricesshouldgraduallywork lower and
the trend should be down until around March 28th to 29th, when bottom will be reachedfor anotherbull
campaign.Many stockswill reachbottom aroundMarch 14thto 15thand remainin a narrowtrading range
until the bull campaignstartsin April. When the advancegets under way, some stockswill reachtop for the
year in Muy, others in June and some of the others,which are behind the market, will reach final high in
August as shownby Curve #1 and Curve #2. A largemajority of stockswill not go any higherthan the
highs reachedin the month of July. After July and early August, the main trend will be down and some
sharpdeclineswill take place,pricesworking lower and reachingfirst bottom aroundSeptembet27thto
28th. From this level follows a fat - sized rally and a trading market running into the early part of
November.After that, the big bear campaignwill get underway and stockscontinueto work lower,
reachingextremelow level for the year aroundDecember23rdto 24th.
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The stocksgiven in the list below are the ones,which havebeendistributedand are the bestto sell short
aroundthe datesindicatedfor the top on Curve #1. Thesestockswill have the greatestdecline,especiallyin
the early part of the year and againfrom August to Decemberwhen a big bear campaignis indicated.

Allis Chalmers Chrysler Int. Harvester Timken

Allied Chemical Coca Cola Kroger TobaccoProducts
AmericanCan Cont. Can MathiesonAl. Union Carbide
Am. Intern'l Corn Products Mont. Ward U.S. Ind. Alcohol
Am. Linseed Dupont Reynolds"B" U.S. Steel
Am. Locomotive Gen. Electric SearsRoebuck Vanadium
Am. Radiator Gen. Motors ShattuckF.G. Victor Talking
Am. Smelting HudsonMotors StewartWarner Woolworth
A.M. Byers HoustonOil Studebaker

RAILROAD STOCKS MAIN TREND OR MAJOR SWINGS

The RailroadCurve is basedon the Dow Jones'20 RailroadStock Averagespublishedby the Wall Street
Journal.The issuesusedin theseAveragesare as follows; - Atchison,Atlantic Coast,B. & 0, Canadian
Pacific,Ches.& Ohio; Rock Island,Del. Lackawanna&.Western,Erie, Illinois Central,Louisville &
Nashville,N.Y. Cen-tral,New Haven,Norfolk & Western,Northern Pacific,Pennsylvania,Pere Marquette,
SouthemPacific, SouthernRailway, Texas& Pacific,and Union Pacific.

From the low in June 1921,to the high in November 1928,theseRailroadAveragesadvancednearly 80

points.They have madethe highestprice in history,gettingabovethe extremehigh level recordedin 1906.
The fact that they advancedinto new territory in the latterpart of 1928showsthe possibilityof many rails,
which are in strongposition going higher during 1929.But the fact that during prosperoustimes the
railroadshave beenunable to earn an averageof 60/oon their capitahzationdoesnot make them very
attractivefrom a speculativestandpoint.Only those,which have merit and show large earnings,will have
very big advancesduring 1929.

The fluctuationsbetweenextremehigh and extremelow during 1929are not likely to be lessthan 20 points
and the averagemay be as high as 30 to 35 points,which meansthat many high - priced stockswill
fluctuate50 to 75 pointsbetweenextremehigh and low.

The Rails as a rule follow the forecasttrend betterthan the Industrialsbecausethey representonly one
group of stockswhile the Industrialsrepresentfifteen or twenty differentgroups.The Dow Jones'20
RailroadStock Averagesare representative of the railroadgroup and most of the railroadswill follow
Curve #1 very closely,thereforeit is not necessaryto give Curve #2 this year.

Railroad Curve #1, you will notice on page#2, runs down from January2nd and bottom is indicated
aroundthe 5th to 7th. Top for the month of Januaryis indicated aroundthe 15th and after this date the main
trend is down, pricesworking lower and reachingfirst bottom aroundMarch 9th to 11thand secondbottom
aroundMarch 28th to 29th. Accumulationshouldtake placearoundthis time and a bull campaignshould
start.First top is indicatedaroundMay 3rd to 4th; then a decline,followed by an advancewith secondtop,
possiblya little higher,aroundJune3rd. Then anotherdeclineand irregularmarket,reachinglow level
aroundJune28th and29th.After that priceswill work higheruntil aroundJuly 15th;then declineto the
22nd, followed by an advanceto aroundAugust Sthto 9th, when final top on rails shouldbe made for
anotherbig decline.After this top, priceswill work lower from every rally. A big declineis indicatedfor
September;anothersharpdeclinein October,reachingbottom aroundthe 23rd to 24th; then a rally running
to aroundNovember21stto 2nd followed by a declineto December24th. when the 20 Rails will reachthe
lowestprice of the year.

The following Rails are in the strongestposition and shouldhave the greatestadvancesat the times when
the bull campaignsare indicated:
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MANUFACTURING: Allied Chemical,Allis Chalmers,Am. Can,Am. Radiator,Am. Tobacco,
BurroughsAdd. Machine,ChicagoPneumaticTool, Coca Cola, ColumbianCarbon,EastmanKodak,
EndicottJohnson,GeneralElectric,Int. Bus. Machine,Int. Harvesterand U.S. Rubber.

MOTORS: GeneralMotors, ChryslerMotors, ChryslerMotors Pfd., Jordan,Hudson,Mack Truck, Stewart

Warner, Stromberg,Studebaker,White.

OILS: Atlantic Refining, CaliforniaPetroleum,Houston,Marland Oil, Pan AmericanPete"A", Pure Oil

Pfd., StandardOil of Calif,, StandardOil of N.J., TexasCompanyand Union Oil of California.

STEELS: Bethlehem.Crucible.Gulf States.SlossSheffield.U.S. Steel.Vanadium.

STORES: Gimbel Bros.,Macy, MontgomeryWard, SearsRoebuckand Woolworth.

UTILITIES: AmericanExpr.rr, A-.fel. & Tel., B'klyn Edison,ColumbiaGas,Cons.Gas,

Detroit
Edison,PeoplesGas,WesternUnion.

IMPORTANT DATES FOR CHANGE IN THE MAJOR TREND

The following datesshouldbe watchedfor importantchangesin the major trend of both Industrialand
Railroadstocks.If any stockmakestop or bottom aroundany of thesedates,you can expecta reversalin
trend,especiallyif thereis a sharpdeclineor a sharpadvancearoundthesedates:Feb 8th to 1Oth,March
21stto 23rd,May 3rd to 7th, June20th to 24th,August3rd to 8th, Sept21stto 24th,Nov. 8th to 11th,Dec.
20th to 24th. Thesedatesare basedupon a pernanentcycle,which doesnot change.Importantdatesare
basedupon a pennanentcycle, which does not change.Important tops and bottoms are made in many
stocksevery year aroundthesetimes.Watch the stocksthat reachextremehigh or low levelsaroundthese
dates.

DATES FOR ACTIVITY AND WIDE FLUCTUATIONS

The following datesindicatetimes when stockswill be very activeand havewide fluctuations,making tops
and bottoms.While all stockswill not make tops and bottomsaroundthesedates,someof the most active
oneswill and if you watch the onesthat turn aroundthesedates,it will prove helpful in your trading:

January5th to 7th, I2th to 15th, 1Sthto 24th

February9th to 12th,20thto 22nd, and2Tth to 28th.

March 1Othto 11th,very importantfor changein trend;21st to 22nd important;28th to 29th anothervery
important date for change.

April 3rd,9th to 10th,13thto l5th,21sr to 23rd.

May 3rd to 4th - watch stocksthat make top around this date; 9th to I lth anotherimportant date when
somestockswill make bottom and other stockswill make top. 22nd to 23rd and29th to 31st- very
important datesfor changein trend; watch for stocksthat will make top aroundthis date.

June lst to 2nd - quite important;7th to lOth anotherimportantchange;21st to 23rd a more important
change.

July 3rd to 5th - very importantfor changein trend;9th to 1Othalso quite important;21stto 24th more
important.
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September2nd to 3rd important;16thto i 7th important,shouldbe bottom of a panicky decline.21st to
24th importantfor top; 27th and 28th importantfor bottom of a big break.

October2nd; 8th to 9th; 18thto 20th very important.- watch stocksw'hichstartto declineand go with
them; 26thto 28th minor importance.

November 1Othto 22nd- a very importantperiod for wide fluctuations.Airplanes.radio and some
electricalstocksmay have sharpadvances.Other importantdatesfor changesare l st to 2nd, 17thto 19th,
and24thto 25th.

December1stto 2nd important;16thto 17thof minor importance: 23rd to 24th greateractivity and of
major importance.

The abovedatesare not only importantfor changesin trend and times when bottomsand tops shouldbe
reached,but on thesedatesimportantnews is indicatedand somewill be of a sudden,unexpectednature,at
times favorableand at othertimes unfavorable,but causingstocksto be activeand fluctuate,making tops
and bottoms and changingtrend.

HOW TO TRADE WITH THE FORECAST

The time given for tops and bottoms is the most important factor for you to know and watch. It makesno
differenceaboutthe price a stock is sellingat. So long as you KNOW WHEN it will reachlow or high
levelsyou can buy or sell and make money.When the Forecastindicatesbottom at a certaindateand stocks
decline,you shouldbuy the onesgiven as in strongposition or the oneswe recofiunendbuying and place a
stop lossorder 3 to 5 points awayaccordingto the price the stockis sellingat. With stocksthat sell at $200
to $300 per share,it is often necessaryto usea stop loss order 10 points away becauseyou have an
opportunity to make large profits and can afford to take a greaterrisk.

Watch the action of stocksaroundthe dateswhen the Forecastshowsthat tops or bottomsare indicatedand
when they hesitatefor a few daysand fail to make new high or low levels,you shouldget out and reverse
position.Keep up chartsand follow the rules in my book, Truth of the Stock Tape,and you will be ableto
follow the Forecastto better advantageand make more profit.

Do not expectthe Averagesor individual stocksto advanceor declineas many points as shownon the
graphor ProjectedTrend.This is only a guide to show you when big swingsand activity are indicated.For
example:- IndustrialCurve #1 beginsat "O" on January2nd and runs down 1o"7" on January5th to 7th, a
declineof 7 points on Averages.Somehigh - priced stocksmay decline 10 to 20 points at this time while
other low and medium - priced stockswill declineonly 2 to 5 points.While somestockswhich are late
movers and in very strongposition will follow Curve #2 andmove up during Januaryat the sametime that
high - priced leadersdecline,the main thing is that Curve #1 showsa sharpadvancefrom January5th to
7th up to January 12th and Curve #2 showsup trend all the month of January.Thereforeyou should watch
for a declineand buy the strongstocksaroundJanuary5th to 7th: then watch for top January12thto 15th,
sell out and go shortof the stocks,which are in our short salelist. Then on January30th, if therehasbeena
big declineas shownby Curve #2, you shouldcover shortsand buy for a rally and if stocksadvanceto
February13thto 15th,watch for top, sell out longs and go shortbecauseCurve #1 indicatesa big decline
the last half of Februaryand during March.

The big buying opportunitywill come in March. Around March 1Othto 11th and 28th to 29th,you should
buy the best stocksto hold for the spring bull campaigninto late May. Both Curve #1 and #2 tndtcatea big
declinefrom July and August to December,thereforefrom July and August you shouldplay the short side
and wait for ralliesto sell shortratherthan buy on breaksbecausethe main trend will be down and you
should never buck the trend but go with it.

Rememberyou must buy and sell at the right time regardlessof prices.No matterhow high stocksare, if
they are going higher,you shouldbuy. It makesno differencehow low they are: if the trend is down and
they are going lower, you must sell short and go with the trend.Take a loss quickly if you seethat the
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MONTHLY INDICATIONS JANUARY
The New Year startsoff underfavorableconditions,, but profit taking will startand stockswill sell off
sharplythe first few days.Then food buying will appearand an advancewill start.The oils, rubbers,
chemicals,and airplaneswill leadthe advance,reachingtop aroundthe 12thto 15th. Around the 18thto
24th somerails, electricsand steelswill advance.Sometrouble in foreign countries,probablyGermanyor
France,will have an unfavorableeffect and will help to stan the declinehere.Watch for top; sell out long
stocksand go short.Quite a declinewill take placeto the end of the month.

INDUSTRIAL STOCKS indicateextremehigh for the month aroundthe 12thto 15th;extremelows

aroundthe 5th to 7th and 30th. Minor moves:- January2nd declineshouldstart:5th to 7th bottom of
decline.Heavy buying shouldstartaroundthis time and a sharpadvanceshouldtake place-makingtop
aroundthe 12th. 19thbottom of decline;24thtop of rally; then follows heavy sellingand a sharpdecline,
reachingbottom aroundthe 30th.

RAILROAD STOCKS indicateextremehigh for the month aroundthe 15th;extremelow aroundthe 5th
to 7th and 30th. Minor moves- January2nd top, when declineshouldstart;5th to 7th bottom for quite a
rally; 15thtop of strongrally, when anotherdeclineshouldstart;21st bottom of decline;24th top of rally.
From this top a big declineshouldtake placereachinglow for the month aroundthe 30th.

Datesto watch for changein trend: - the datesmarked "XX" are the most important and indicate a major
changein trend.You shouldwatch for importantchangesaroundthesedates.The datesmarked"X" only
indicateminor changesin trend,which will only last for a few days.- January5th - 7th XX, 1lth - l2thX,
25th - 26thXX,3 l st X.

FEBRUARY
Businesswill fall off and we will hear somediscouragingreports.The FederalReserveBank will make
somechangeor threatento curb speculation.Therewill be talk of new bankinglaws, which may be adverse
to speculation.The generallist of high - priced stockswill declinethis month,altho the marketwill be
mixed. Sugars,rubbersand late moverswill have someadvances.The railroad,airplane,radio and electric
stockswill rally from every decline.Around the 12thto 13th of the month someof the oils, rubbersand
sugarswill be quite strong.The generallist of old time leaders;however,will work lower from every little
rally.

INDUSTRIAL STOCKS indicateextremehigh for the month aroundthe 13thto 14thand extremelow
aroundthe 28th. Minor moves: 1stto 4th advance;then follows a declineto the 8th, when bottom shouldbe
reachedfor anotherquick rally; 13thto 14thtop, sell out and go short.Expectheavy liquidationand a
sharp,severedeclinereachingbottom aroundthe 28th for a moderaterally.

RAILROAD STOCKS indicateextremehigh for the month aroundthe 15thand extremelow aroundthe
28th. Minor moves- lst to 5th advanceand make top for a moderatedecline;9th bottom of decline;expect
quick rally in somerails, reachinghigh aroundthe 15th,followed by a sharpdeclinemaking bottom around
the 28th.

Datesto watch for chansein trend: - 9th to 12thXX; 19thto 20th XX; 23rd to 24thx,28th X.

MARCH
Mr. Hoover will take the office of Presidentof the United Statesthis month and in the early part of the
month therewill be a demonstrationin stocksand quite an advance,but it will not hold and a sharp,severe
declinewill take place in many stocksbeforethe end of the month. Sometroubleis likely to come up in
connectionwith Spainor Mexico, which will upsetthe market.Airplane stockswill be quite strongduring
the datesindicatedfor advancesto take place.The oils, sugarsand chemicalswill hold up betterthan other
socks.Tractionstockswill be strongand thereis likely to be somedevelopmentin connectionwith the
subwayfare,which will causean advancein New York tractionstocks.The steels,motors,rails and
electricalissueswill breakdurins the earlv and latterpart of the month'
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bottom of reaction.Stocksin strongposition will havea rapid advancebetweenthe 1Othand 29th.Watch
for top aroundthis time.

RAILROAD STOCKS indicate extremehigh for the month around the 3rd to 4th; extremelow aroundthe
1lth to 13th,althoughsomeissueswill go to extremehigh aroundthe end of the month.Minor moves;- 1st
to 3rd strongmarket,making top around3rd to 4th. Then follows a decline,making bottom aroundthe 1lth
to 13th,followed by an advancemaking first top aroundthe 25th for a moderatereactionto the 28th; then
rally to the end of month.

Datesto watchfor chansein trend:- 3rd to 4th X: 9th to 1OthXX: 22ndto 23rd X: 29th to 31stXX.

JUNE
A sharpdeclineand heavy liquidationin many stocksis indicatedfor this month.Therewill be war in
foreign countriesor war rumors.Strikesat home as well as abroad.Crop newswill be unfavorable.Storms
or earthquakes on the southernborder and in Mexico will do damageand help to unsettlethe market.The
outlook for the summerbusinesswill be very much mixed. One of the major cyclesand time factorsruns
out this month and a very importantchangein trend is indicated.High priced stockswill haverapid
declinesand many stockswill make extremehigh for the year. The tin. oils and agriculturalstocksand also
the chemicalswill breakbadly after reachingtop in the early part of the month.Motors will also decline
sharply.

INDUSTRIAL STOCKS indicateextremehigh for the month aroundJune l st; extremelow aroundthe
22ndto 24th. Minor moves:- 1stto 2nd advanceand make top for a big decline; 1Othto 1lth bottom of
sharpdecline;then follows a moderaterally reachingtop aroundthe 17th,followed by hear,yliquidation
and sharpdeclinemaking bottom 22nd to 24th. From the 24th to the end of the month many stockswill
havequite a rally.

RAILROAD STOCKS indicateextremehieh for the month aroundthe 3rd: extremelow aroundthe 1Oth
to 1lth and 28th to 29th.

The rails will not move in a very wide rangethis month, excepta few of the very high - priced issues.
Minor moves:- lst to 3rd advance;4th to 1Oth- 1lth sharpdecline;then follows a moderaterally, reaching
top aroundthe 2lst to 22nd followed by liquida-tionand lower prices,making bottom for the month 28th to
29th.

Datesto watch for changein trend: - June lst to 2nd XX; 7th to 1OthX; 21st to 23rdXX;'28th X.

JULY
Another advancewill take placethis month and many stockswill have sharpralliesand reachthe final high
for the year.The airplanecompanieswill prosperand their stockswill advance.Electricaland chemical
stockswill also recordsharpadvances.Poolswill rush up stocksas fast as they can to unload.The late
moverswill be broughtinto line while distributionis tak-ing placein the old time leaders.Sugarsand
rubbersshould have some sharpadvances.A very important major time factor ends at this time and
indicatesthe startingof a big prolongedbear campaign.Rememberthat the last high for the year well occur
in many stocks.A greatdelugeand panicky declinewill follow the top at this time, resultingin a "Black
Friday" in September.There are likely to be somelabor troublesand strikesin the west and south,which
will interferewith the businessoutlook.

INDUSTRIAL STOCKS indicateextremehigh for the month aroundthe 20th; extremelow aroundthe
9th to 10th. Minor moves lst to 3rd strongmarket,making top for a quick decline;9th to 1Othbottom of
sharpdecline;then follows a rapid advance,making top on the 20th; declinereachingbottom on the 22nd;
fol-lowed by a strong market to the end of the month.
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The chemical,electricaland airplanestockswill hold up and have somequick rallies aroundthe dates
indicatedfor advances.

INDUSTRIAL STOCKS indicateextremehigh aroundthe 18thto 19th:extremelow aroundthe 8th to 9th

and26thto 28th. Minor moves:- October2nd top of small rally from which a sharpdeclinewill take place;
8th to 9th bottom of decline,when a betteradvancewill take place,especiallyin the stocksin strong
position; 1Sthto 19thtop of rally. Stocksin weak positionwill have a sharpdecline,running down to the
26thto 28th; then. follows a moderaterally to the end of the month.

RAILROAD STOCKS indicateextremehigh for the month aroundthe 1Othto 1lth; extremelow 23rd -
24th. Minor moves:- 1stto 4th declineand makebottom for a moderaterally; 1Othto 11thtop of rally;
then follows a heary wave of liquidationand lower pricesmaking bottom aroundthe 23rd to 24th,
followed by a moderateadvanceto the end of the month.

Datesto watch for changein trend:- 2nd to 4th XX; Sth to 9th X; 18thto 20th XX; 26th to 28th X.

NOVEMBER
The oils, chemicalsand rubberswill have a final advancethis month and make top for anotherdecline.
Businessconditionswill be growing more unfavorable.Thereare likely to be earthquakes in Mexico or
California.This will disturbthe stockmarketand depressbusiness.This is the month for war news from
foreign countriesand some greatleaderabroadwill show his power. The latterpart of the month is very
unfavorableand somesharpdeclineswill take place. But the airplane,radio and electricalcompaniesand
someof the rails will have an advancearoundthe 1Othto 22nd.

INDUSTRIAL STOCKS indicateextremehigh for the month aroundthe 2nd to 4th; extremelow around
the 23rd to 25th. Minor moves:- follows heavy sellingand a sharpdecline,reachingbottom aroundthe
11th to 12th,but only for a moderaterally; 18th to 19th top of advance.From this level therewill be
anothersharp,severedeclinecarryingpricesdown to low levelsaroundthe 23rd to 25th. Then follows a
moderaterally to the end of the month.

RAILROAD STOCKS indicateextremehigh for the month around,the 21stto 22nd; extremelow around
the 27th to 28th.Minormoves;- lst to 2nd top of moderaterally; then follows a decline,reachingbottom
aroundthe 9th to I lth; then a quick rally, mak-ing top aroundthe 2 1stto 22nd followed by heavy
liquidation and a sharpdecline, making bottom around the 27th to 28th.

Datesto watch for changein trend:- 1stto 2nd XX; 11th to 13thX; I 7th to 19thXX; 24th to 26thX.

DE CE M B E R
Our businessin someof the foreign countrieswill increase.Speculationwill shift from stocksto
commodities.The U. S. Governmentis threatenedwith greatopposition,if not dangerof war. General
businessoutlook will grow very much more unfavorablePanickydeclinesin stockswill take place.

INDUSTRIAL STOCKS indicateextremehigh for the month aroundthe 2nd; extremelow aroundthe
23rd to 24th. Minor moves:- 1stto 2nd advance;then follows a sharp,severedeclineand heavy liquidation
with only small rallies indicatedlastingone to two days,reachingextremelow aroundthe 23rd to 24th;
then follows a quick rally reachingtop on the 28th followed by declineto the 31st.

RAILROAD STOCKS indicateextremehigh for the month aroundthe 2nd; extremelow aroundthe 23rd
to 24th. Minor moves:- l st to 2nd advance;3rd to 1Othsharpdecline,making bottom for only a moderate
rally; 15thtop of rally; then heavy liquidationand a declinerunning to 24th; then follows a rally to the end
of the month.

Datesto watch for changein trend: - lst to 2nd XX; 16thto 17thX; 23rd to 24thXX 28th X.
 In vou LIKEDTHISCounsn. you woulD ENJoy:

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WITHIN WHEELS
Tnn Anr or FoREcesrrxcFrxexcrer Menxrr CvcrEs
Bv D,arrilnr T. FERRERA

We are happy to announcethe releaseof a new course,by Dan Ferrera. Wheels

Iffithin Wheels: The Art of Forecasting Financisl Market Cycles.

In this course,Dan breaks down the 16 primary cyclesof the Dow JonesAverages,
and combinesthem in Excel spreadsheets to createa compositewave which very
closelyreproducesthe last 100 years of market activity (seechart below). He
explainsall cyclelengths,somepossiblecorrelations,but most importantly projects
them 100 years into the future with the DTF Barometer to give a clear vision of the
next 100 years of the Dow JonesAverages.

For further details,seecontents,1900-2000Composite,and reviewsbelow. The

book is hardcover and price is $450.00.

TABLE OF CONTENTS:

PART I - SpecialStock Market Cvcle Report

Author's Introduction
The l8-Year Super Bull & Bear Market Cycle
The Big Picture
A Closer Look At Cycles
The A}-Year Cvcle
Interest Rates
The Economy
The January Effect
2002- 2102 Major Trend Cycle Composite Forecast

PART II - Special Stock Market Cvcle Report

Author's Introduction
What is a Cycle?
The New Era
The Four Primary Intermediate Cycles
'W.D.
Gann's Stock Market Patterns
The 10 & 9 Year Cycles
The Shorter Cycles
Putting Them All Together
S&P 100 Year Projection Using #1 & #2 Dominant Cycles
Follow The Yellow Brick Road
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will certainly want to know when these "once in a lifetime" opportunities come for
stock investing.This report also mentionsthe more frequent short term cyclesof
economicactivity that can act as a guidepostto the outcomesforecastedby the
master long term cycles.If you invest in the market with any long-term funds you
will need to know the information in this report. It's presentedas a fairly basic
analysisthat will serveas a steppingstoneto more sophisticatedcycle analysisbut
for the averageinvestor if you don't know thesebasicfundamental cyclesyou will
be at a significantdisadvantagein the investmentarena.For the rather modestcost
of this report, I feel it is an investment in the future well worth making.
Michael S. Jenkins, Stock Cycles Forecast

"Mr. Ferrera has put together a very unique stock market report that clearly shows
two dominant long term cyclepatterns that have predicted every major Bull & Bear
Market Trend for the past century. He then projects this pattern 100 years into the
future. I would highly recommendthis report to anyonethat investsin the US Stock
Markets?t Bonnie Lee Hill, Dallas, Texas
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 Ir vou ltrnn rHIs CouRsEvou wourn nx.rov:

TUE Gnxx PvneMID

SouanEor NtxEEssnxrters
Bv DaxIELT. Fnnnnne

The Sacred Science Institute is proud to announce the release of a new

groundbreaking course on the Square Of Nine, W. D. Gann's most mysterious
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other writings on Gann Analysis!

lntroduction P-2
Navigating With the Square of Nine P-7
Bible Interpretations Relatedto W. D. Gann P-l1
What Gann Said About the Squareof Nine P-15
Six Squaresof Nine P-16
Squareof Nine Time Applications P-19
Price Targets For Support & Resistance P-23
Using A Square of Nine Table P-25
Time As a Price & Price as a Time P-28
Gann Angle Projection P-30
Square of Nine Time Techniques,A Different Look at History P-33
Analyzing Markets P-39
Nine RulesFor The Squareof Nine P-40
PBRToITCNUMBERCYCLES P-42
Price as a Time Period P-45
Price Levels For Support & Resistance P-47
Converting Astronomical Longitude to Price P-49
ANornrR ASTRoNoMICALTECHNIQUE P-55
Fibonacci Ratios P-60
Conclusion P-62
W. D. Gann Calculators P-63

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Annendix A Coffee Letter References
W. D. Gann May Coffee SantosD
Coffee Charts, Horoscopes,& Calculations
Appendix B Geometrical Anqles
casting Method - Geometrical Angles
W. D. Gann The Basis of My ForecastingMethod For Grains
W. D. Gann Grains Scaleof Prices
W. D. Gann Charts & Demonstrations
Appendix C Time Cvcles
W. D. Gann Forecasting& The Master Time Factor
How To Create A Composite CYcle
Astronomical Cycles& The 37 Year William's Cycle
Gann's Great Mutations Charts
Ludwig Larson Ages & Cycles of Time
George Bayer & Cycle Interpretation
Heliocentric Moves
W. D. Gann Cash & May SoybeansFutures
Planetary ReferenceSheets& Tables
Sepharial The Arcana or Stock & Share Key
Appendix D Sovbean Letter References
W. D. Gann SoybeansPrice ResistanceLevels
Active Angle References
SoybeanChart & Horoscopes
Annendix E Master Calculator
w. n. Gann Master Calculator for weekly Time Periods
W. D. Gann Mathematical Formula For Market Predictions
Appendix F Master Charts
W. D. Gann Master Charts
Studies & Examples
Appendix G Market Volume
Commentaries on Market Volume
W. D. Gann Market Trends, The Volume Rule - Unpublished Manuscript
W. D Gann Form Reading
Ted Warren The Four Basic Phases/ Cyclesof Stock Prices
W. D. Gann Trading Rules
The Ticker & Investment Digest 1909 Gann Interview
Computer Programs Included
Excel - Cycle Calculator
Excel - w. D. Gann Mass Pressure calculator For Dow 30
Excel - Mathematical Formula For Market Predictions Calculator Overlay
Excel - Time Calculator
Excel - 2 Square of Nine Calculators
program - Ne1o planet - Calculates Planetary Positions By Degree Progression
program - Cyclekt - Wave Mechanics Program Creating Summational Waves

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