Planetary Harmonic Model - 23 Sep 22
$DJIA, $SPX, $COMPX - Do not try to catch a falling knife
‘Do not try to catch a falling knife’ is an adage that often applies to stock market lows and often forgotten by traders/investors to step in too early, whilst ‘another fast moving train’ was coming on its way to make an even lower bottom.
Cycles synchronize at the bottom in the stock market and not until these have bottomed the change in trend will occur. So, always wait for the confirmation a bottom have set in.
W.D. Gann explained this in his Stock Market Course making a comparison with machineries and discussing the concept of lost motion.
“As there is lost motion in every kind of machinery, so there is lost motion in the stock market due to the momentum, which drives a stock slightly above or below its resistance level…but when it slowed down it would finally settle on the exact center”. W.D. Gann Stock Market Course.
Connie Brown explained in her book the Thirty-second Jewel (p365-366) how to see if there is still lost motion left in the machinery of the Stock Market using detrended oscillators on two charts in a 1:4 ratio. When both oscillators are in sync there is a higher probability there is no lost motion left. In today’s update on our planetary harmonic model, I will show our premium subscribers how that works out for today’s market.
Our premium readers can read further on this concept in below update and find the updated projections for the DJIA, SPX and COMPX based on the Planetary Harmonic Models updated into the end of 2022.
Disclosure: Positions in the SPX
This analysis is intended for general informational & educational purposes only. Hypothetical or simulated performance based on past cycles have many limitations. Cycles can contract, extend and invert. Hence, past performance is no guarantee for the future. No advice. Read our full disclaimer.
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