The Lost Cycle

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A nd the rain was upon the earth forty days and forty nights…and the flood was forty days
upon the earth. (Genesis 7:12, 17a) And Moses was in the mount forty days and forty
nights. (Exodus 24: 18b) And he was there with the Lord forty days and forty nights.
(Exodus 34:28a) And forty days were fulfilled for him; for so are fulfilled the days of those who
are embalmed. (Genesis 50:3a) And they returned from searching of the land after forty days.
(Numbers 13:25) And the Philistine (Goliath) drew near morning and evening, and presented
himself forty days. (I Samuel 17:16) And when He (JESUS) had fasted forty days and forty
nights, he was afterward hungry. (Matthew 4:2) And He was there in the wilderness forty
days tested by Satan. (Mark 1:1 3a)
One of the most prominent and significant time frames throughout the Bible is the cycle
of forty days, or more often than not forty days and forty nights. The preceding verses are but a
few of the numerous passages, within the Bible, which emphasize the importance of this unique
period of time. It’s appearance spans all of written history, not just that of the Word, from the
embalming practices of the ancient Egyptians and Israelites to the life of Jesus and on through
to the modern day observation of Lent, the forty day period from Ash Wednesday to Easter
Sunday observed by Catholics worldwide. It is also recorded that Jesus remained on Earth for
forty days after His resurrection before ascending into Heaven.
The significance of this, from a trader’s perspective, is realized when this cycle is
applied to market action and used in tandem with other cycle and wave analysis for increased
accuracy in trading.
It is very surprising that most Gann students choose to ignore this cycle, proven time and
again throughout history, and instead elect to adhere to a forty-five day cycle which so often falls
short of their expectations with no apparent explanation. The reason should now be obvious—it
is due to the presence of the six-thousand year old, forty day cycle overriding the more popular
(though often less effective) forty-five day cycle. So many followers of W.D. Gann also elect
to ignore his exhortation to study the Bible, reading it three times before proceeding, instead
diving immediately into angles, squares and cycles without the necessary foundation being
laid fist. They are neglecting the structure that must fist be developed for a successful
trading discipline.
The Bible possesses a vast wealth of knowledge and information and Gann’s advice
should be heeded by any student willing to devote the necessary time and effort to become
an informed and enlightened trader. Trading should not be a one or two year whim but rather
a lifelong endeavor. It is not just the Biblical implications, however, which emphasize the
significance of this time frame, but also the numeric and chronological characteristics. A forty, or
forty and one-half, day cycle is unique when considered in the following light:
1) 365 days divided by 9 = 40.55 (Why don’t more Gann enthusiasts follow this?)
2) 2 times 40.55 = 81 (9 squared) 3 times 40.55 = 121/122 (11 squared, onethird of a year and
only one degree from a very interesting angle)
3) 1932 low in the DJIA = 40.56
4) A six week cycle (the most prevelant in stock index action) measured from the commencing

Monday through the culminating Friday encompasses 40 days.
As mentioned in #2, the second and third multiple of this cycle are equally as important
when seeking major reversal points in any market. It would be easy to selectively pick supporting
charts and include them with this article to reinforce my point but that has never been my
approach. I would prefer to outline the forthcoming dates when this cycle is strongest, and
therefore most likely to produce dramatic revesals in the indexes. There are currently six time
frames apparent which should be viewed for highs and lows.
The low cycles align on:
l-August 21-24, 1990
2-September20-21, 1990
3-October 19/22, 1990
The high cycles align on:
I-October 3/6, 1990
2-November 16, 1990
3- January 2, 1991
(Yesterday’s invasion of Kuwait by Iraqi forces conrms the decline which is inevitable
into the three year anniversary of the infamous Harmonic Convergence and a plethora of other
cycles, including the forty day.) The initial low cycle is likely to produce the lows for the year,
much like it produced the highs, on the same date, three yeas ago. This cycle should be utilized
like any other, considering it not only from market highs and lows, but also from prominent
planetary and seasonal dates. (It is interesting to note that yesterday’s invasion came on
the forty-st day since the summer solstice and I will be closely monitoring the events in the
Middle East on three subsequent dates-September 11+12 and most accurately on October 22
and December 1-2. The October date should be dramatic since it aligns with the three year
anniversary of the crash, a cycle low in the Dow and eighty-st day since the invasion, which
is also the 121st day since the solstice.) These cycles, as well as the Elliott Wave and much of
Gann analyses possess a certain level of subjectivity and I continually stress the placement of
proper emphasis on any subjective analysis within a structured, disciplined trading approach.
Cycles, and the Elliott Wave, are not panaceas but can play an important part and ll a perpetual
void in many trading strategies. Entering the markets should be just like entering a business not
just a lot of theory, but rather a structured, disciplined and prearranged strategy to participate
in and capitalize from their existence. Recognize the strengths and weaknesses of these
tools and utilize them accordingly.

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