W. D. Gann’s Master Time Factor Revealed II

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Note that based on this 100-year stock market cycle, the major contraction did not occur
until February 1893. This time window starting in January 1993 is of particular importance
because it is confirmed by major tops and extreme liquidation in 1873*, 1883, 1903~,
1913, 1923, 1953 and 1973* (*emphasis added). This may set up as the greatest shorting
opportunity since the 7th year panic or “death zone” as Gann called it in the years 1837,1857,
1877,1907,1937 and 1987.
We believe Gann used the Master Time Factor as the most important component in
determining major turning points in all the futures markets he followed. The ability to do this
with a high degree of accuracy, is what made Gann a millionaire, and allowed him to make
a world record more than once.
Based on Gann’s Master Time Factor, we should not be mystied by the deation that
has gripped our markets. The overall price deation, as reected by the CRB Index since the
November 1980 all-time highs, has its sister markets in the decades of the 1870s, 1890s,
1920s and 1930s markets.
The silver has been a market classic in the context of this deation. The highs in 1980 marked
the 90-year and 60-year anniversaries of the 1890 and 1920 market tops. Based on Gann’s yearly
Traders World 310
time cycles, 1992 will mark the 90-year, 60-year and lO-year anniversaries of the 1902,1932, and
1982 lows (Figures 3-4). This is an important year to watch for nal lows.
During the bear markets in the years 1890,1900,1910,1930,1970 and 1980 only brief short
covering rallies occurred. In each year, these rallies were completed between August and
September, and were followed by the resumption of the bear moves. Using these cycles as
proxies for what to expect in our current market, the August 1990 rally highs in silver offered
an ideal opportunity to enter short positions. As Gann would say, you do not have to guess
what the market will do, you know.
Other market classics this year have been the zero year major lows in T-Bills prices
(1920,1960,1970 and 1980), the zero year bull market blow-off and nal top in cotton (1880,
189(), 1900, 1920, and 1980) and the zero year blow-off in crude oil (1890, 1920 and 1980).
Soybeans have been the only market with mixed signals, and this probably explains the trading
range we have experienced since 1989.
Of particular interest to us over the next four years, is the potential for higher prices in gold.
This is the one commodity that provides us with a decidedly bullish argument based on the
yearly time cycles. By observing Homestake Mining (a gold stock) as a surrogate for gold when
the price of the physical metal was xed until 1971, we have constructed a very bullish long
term argument for gold. Major lows in Homestake were made in 1890, 1909, }1920,1929,1950
and 1960 (Figures 56). Add to this the abandonment of the Gold Standard in 1861 and 1971,
and the likelihood exists for nal bear market lows being in place. Based on these cycles, 1993
and 1994 should exhibit signicant strength.
As an active researcher for twelve years in the techniques of W.D. Gann, it astounds me
how few of his disciples utilize the Master Time Factor. The biggest hurdle is acquiring the
historic price data necessary to make the forecasts. As Gann stated, “If I have the data, I can
use algebra and geometry and tell exactly by the theory of cycles when a certain thing is going
to occur again.” Once you have the data, making up a forecast is as simple as counting from
one to ten. Nothing could be simpler, or more valuable.


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