Ferrera's Forecast

On June 18 & 26, Dan sent along some S&P projections for July 12. Now
that it is July 12, wanted to post the results of the projection. Following
is the original email with the analysis, which was the answer to a student's
question. Below that, you will find a screenshot of July 12 S&P, to see
how it turned out. The projection was made using techniques included in the
Gann Pyramid, Square of Nine Essentials.

-----Original
Message-----

**From:** Daniel Ferrera

**Sent:** Monday, June 18,
2001 7:34 AM

Dan:

Thanks for the S&P500 5/22/01 market example. It certainly
is fascinating. But I am not clear about

how the various cycle values to add are determined.

For example we have 1 and 1/2 cycles added to the 60 degrees
in this example. I see where the 60

degrees came from but not the 1 and 1/2 cycles :

"The sqr root of 1081 = 32.878 + 3.333 (1 and 1/2 cycles +
60-deg for the Sun) = 36.21 ^2 = 1311.28 "

On the next one the 26 degrees is again clear but the 3/4 of a
cycle is not. Wouldn't 1 and 1/2 cycles be

just as appropriate.

"The root of 1207 = 34.742 + 1.644 (3/4 of a cycle or 270-deg
+ 26-deg for the Sun) = 36.386 ^2 = 1323.94"

It seems that we are looking at aspects to the price
using this equation. The degrees of the Sun

for important aspects are converted to their root values
and added to the root of the price. The result is then

squared. We then look for multiple confirmations. But
then how do account for the various odd aspects that

were used like 26 degrees and 17 degrees ? How would they be
determined ahead of time ?

Perhaps the question is answered in your courses and I just
need to study them. Please excuse me if that

is true.

In any case if you have any more market examples please send
them.

Sincerely,

Mike

-----Original
Message-----

**From:** Daniel Ferrera

**Sent:**
Tuesday, June 26, 2001 11:10 AM

When you make projections to predict a resistance
level, you should use lows and project up. If you are trying to calculate a
support level, you use highs and project down. You are looking for price levels
that are making negative aspects to the starting prices, i.e.. 45-deg, 90-deg.
135-deg, 180-deg, etc. These aspects can be on any ring of the square.
Harmonious aspects are allowed,such as 60-deg, 120-deg, 240-deg but I
prefer negative aspects for the majority. As you get closer to a date that is
projected to be a turn, you limit your calculations based upon the current price
levels that are in place. When working with previous tops to project support,
you also factor in the longitude traveled by the Sun since the time of the turn.
That is where I was getting numbers like 17-deg, 26-deg etc. These numbers
where generated because the Sun had moved this amount from a past turn that I
was using. I just converted them to roots by dividing them by 180-deg and then I
added them to the normal square root aspects. For example, I am expecting a
major stock market low on July 12th, 2001 followed by a rally into September.
What would I do to come up with a likely support number for July 12th? In terms
of the Square of Nine, I would do all of the following. Since I'm calculating
support, I'm going to look at aspects to past highs. Here is a list for the
S&P500:

3/24/00 1552.87 to July 12th 2001
the Sun moved 466-deg, which is 106 after rejecting the circle. 106/180 = 0.588
as a root

7/17/00 1517.32 to July
12th, the Sun moved 355-deg, which divided by 180 = 1.972 as a root

9/1/00 1530.09 to
July 12th, the Sun moved 311-deg, which gives 1.7277 as a root

11/6/00 1438.46 to July 12th, the
Sun moved 246-deg, which gives 1.366 as a root

1/31/01 1383.37 to July 12th, the
Sun moved 158.5-deg, which gives 0.88 as a root

5/22/01 1315.93 to July 12th, the
Sun moved 48.75-deg, which gives 0.2708 as a root.

Just taking straight aspects to these prices gives
the following:

1167.09 is 135-deg to 1552.87

1170.71 is 225-deg to 1517.32

1164.73 is 180-deg to 1530.09

1168.15 is 45-deg to 1438.46

1169.86 is 180-deg to 1383.37

1174.88 is 360-deg to 1315.93

The Average of these 6 is
(1167.09+1170.71+1164.73+1168.15+1169.86+1174.88)/6 = __1169.24__

Setting "zero" as July 12th on the outer calendar wheel gives
165 on the 180-deg, which is also 1165. 172.50 comes out on 225-deg, which is
also 1172.50. 1166 comes out on 45-deg and 1180 comes out on a 90-deg angle. The
average of all these gives (1165+1172.5+1166+1180)/4 = __1170.875__ This
already tells me that the low is likely to be between 1169.24 and 1170.88. Now
I'll just calculate the aspects taking the solar movement into
consideration.

What we are going to do here is converting all the
prices from our highs based on the distance the Sun has traveled since the time
of the top to our next date. I will do these in the same order as
above.

3/24/00 1552.87 root = 39.406 - 0.588 (for Sun) = 38.818
re-square = 1506.837

7/17/00 1517.32 root = 38.953 - 1.972 (for Sun) = 36.981
re-square = 1367.594

9/1/00 1530.09 root = 39.116 - 1.7277 (for Sun) =
37.388 re-square = 1397.88

11/6/00 1438.46 root = 37.927 - 1.366 (for Sun) = 36.561
re-square = 1336.70

1/31/01 1383.37 root = 37.193 - 0.88 (for Sun) = 36.313
re-square = 1318.63

5/22/01 1315.93 root = 36.275 - 0.2708 (for Sun) = 36.004
re-square = 1296.30

Now we just take straight aspects to these new
prices which take the Sun into account and see what we get.

1178.33 is 270-deg to 1506.837

1172.67 is 225-deg to 1367.594

1165.84 is 135-deg to 1397.88

1160.49 is 270-deg to 1336.70

1177.43 is 360-deg to 1318.63

1173.34 is 45-deg to 1296.30

The Average of these 6 is
(1178.33+1172.67+1165.84+1160.49+1177.43+1173.34)/6 = __1171.35 __

If I was asked to make a projection for July 12th
2001, I would say that we are likely to find support at
__1170.49__, which is the average of
(1169.24+1170.88+1171.35)/3.

Also, looking at the last low to high swing we see that the
S&P made a low at 1081 on 3/22/01 and a high of 1316 on 5/22/01/ The Range =
235 points. Divide by 8 gives 29.375 points per 8th. The 3/8ths support line
comes out as (3 x 29.375 = 88.125 + 1081 = __1169.125__)
This is a 5/8ths decline from the 1316 top. If we measure from the higher bottom
on 4/4/01 at 1092, we get a range of (1316 - 1092) = 224, divide by 8 gives 28
points per 8th. The 3/8ths line comes out as (3 x 28 = 84 + 1092 =
__1176__). The average support number of these two
calculations comes out as (1169.125 + 1176)/2 = __1172.56__, which
is in line with our other calculations.

Using the angle projection technique from 4/4/01 (This is
where the up-trend started), we get the following: The root of 1092 = 33.045. So
we look for market turns every 33 days. July 12th is 99 days from April 4th ( 3
x 33 = __99__). The 1 X 1 angle would cross the
price of (root of 1092 = 33.045 + 3 = 36.045 re-square = 1299.27)
**1299.27.** We now have a range of (1299.27 - 1092) 207.27
points. Divide by 8 gives 25.909 per 8th. The 3/8ths angle support line
crosses (3 x 25.909 = 77.727 + 1092 = __1169.73__. If you
so not understand why I added 3 to the root it was because every 33 days, we
move 180-deg in price on the Square of Nine because the root of 1092 =
33. July 12th is 99 days from April 4th, which is the 3rd cycle of 33 days
or 540-deg on the Square of Nine, i.e. (180+180+180 = 540). The 1X1 angle coming
down from the 5/22/01 top would drop at the rate of 1.987 points per day (Root
of 1316 = 36.276 minus 1 = 35.276, re-square = 1244.44. 1316- 1244.44 = 71.55
divided by 36-days = 1.987/day).

July 12th is 51 days from May 22nd. Multiplying 51 x
1.987 = 101.36. Therefore the 1 X 1 crosses (1316 - 101.36) 1214.63 on July
12th. The 60-deg angle would cross at 1180.88 (1.987 divided by 45 = 0.04415
price/deg ratio multiplied by 60-deg = 2.649 points/day X 51days = 135.116 pts
subtracted from 1316 = 1180.88). This is a price angle that the market must
regain to put it back in a more positive position. The 67.5 degree angle
crosses at __1163.99__ on July 12th. This would be the
next support line if 1170.84 does not hold because 1164.73 is 180-deg to 1530.09
and 1165.84 is 135-deg to 1397.88 (Sun adjusted price) so we have 3 hits in this
price area.

The mean of Five Geocentric on 7/12/01 is 209.025 or
29-Libra

The mean of Six Geocentric on 7/12/01 is 216.77 or 6-deg
46-min Scorpio

The Geocentric Cycle of Eight avg. on 7/12/01 is 182.177 or
2-deg 11-min Libra.

If you place the zero line on these outer circle degrees, you
get:

1167.96 is on the 315-deg angle from 29-Libra

1170.89 is on the 315-deg angle from 6-deg 46-min
Scorpio

1174.82 is on the 0-deg angle from 2-deg 11-min
Libra

Average of these 3 is (1167.96 + 1170.89 + 1174.82)/3 = __1171.22__, which
matches our other calculations.

The mean of Five Heliocentric on 7/12/01 is 207.198 or 27-deg
11-min Libra.

The mean of Six Heliocentric on 7/12/01 is 219.22 or 9-deg
13-min Scorpio.

The Heliocentric Cycle of Eight avg. on 7/12/01 is 253.10 or
13-deg 6-min Sagittarius.

If you place the zero line on these outer circle degrees, you
get:

1167.27 is on the 315-deg angle from 27-deg 11-min
Libra.

1171.82 is on the 315-deg angle from 9-deg 13-min
Scorpio.

1167.62 is on the 270-deg angle from 13-deg 6-min
Sagittarius.

Average of these 3 is (1167.27 + 1171.82 + 1167.62)/3 = __1168.90__, which
again matches our other calculations. The average of these two (1171.22 +
1168.90)/2 = __1170.06__, which supports the original
calculations based on past highs.

I hope that this clears things up for
you.

Sincerely,

Daniel