Bayer rules

RULE NO. 1
SPEED OF MERCURY IN GEOCENTRIC LONGITUDE

WE TAKE Raphael's geocentric Ephimeris for this purpose, looking up page 26-29. the value we have to use is given in the second last column on these pages. This speed changes from day to day. Periodically the speed comes to a stand-still. At such times the planet moves from a direct motion into a retrograde motion or from a retrograde to a direct motion, see Illustration No. 2 below.

The extreme speed of Mercury is 2degrees 12', however at times this extreme speed is reached at 2 degrees4'. It is advisable to plot this Mercury speed on K&E paper through an entire year and note the effect of such changes. We obtain tops or bottoms.

**********Illustration No. 2 HERE*****

The Direct and Retrograde Movement of a Planet (Geocentric)
Examples: July 26th 1039 low was reached when Mercury was at 0.
September 15, 1939 peak was at the extreme speed of 1degree54'.
On May 21-22 1940 we have an extreme Mercury speed of 2degrees12', heralding a change of trend.
Rule: It is advisable to follow the market in the direction the day Mercury changes its speed. Usually the trend begun at such time
is good for from 4 days to a week.

Using 1940 as a check, we have the following dates as change of speed:
February 9-10. It was a top and we went down until February 14th. The movement was a minor reaction of two cents.
March 5th, 1940: Mercury at 0. Sharp up move for three days, extending nearly 4 cents.
March 15th, 1940: Mercury 57' speed changing to downward again. It was a low from which an upmove of 6c came forth.
March 28th, 1940: Mercury at 0. this case did not give a clear cut movement, in fact considering we had declined two days previous already, we would be inclined to expect an up move on that change. But we sold off slightly. Would call it a failure.
May 21st, 1940: mercury at 2:12. Moving downward from the 20th also the 21st, called
for a reversal upward for several days we did get. It extended about 4c.
The next date is coming between July 7th and 8th.

There were five commitments made according to this rule up to date lasting 3 to 5 days. Profits were in four, in one a loss of about 2c. Let us figure we did not get exact tops or bottoms I would judge that at least a net profit of 8-10c should have been produced. This in 6 months of operation.
It is not a law that gets one rich quick, but one in which several contracts can be taken and held a few days. When the previous movement is down, wheat must be bought on weakness of the day; if the market moves upward prior to change of Mercury's peed, short positions must be taken on strength during the day mercury changes its speed.

RULE NO. 2
MARS-MERCURY SPEED DIFFERENTIAL OF 59 MINUTES

We use the geocentric longitudinal speed of Mars and Mercury given on page 26 to 28 of Raphael's ephemeredes. Each time mars reaches a point that is 59 minutes apart from the Mercury speed we are due for a down trend of about three days duration. It does not matter whether we have been going upward in the trend before. We might have been going downward and upon reaching this differential, we are heading for further down.

Examples:

January 25, 1940, Mars has a speed of 41 minutes, while Mercury has a speed in geocentric longitude of 1.40. They are then 59 minutes apart in their speeds.
Wheat had declined before 3-1/2 points.
From this date (January 25, 1940) we declined the same amount once more until February 1, 1940, or 3-1/2 points. On April 30, 1940, mar's speed is 39 minutes, that of Mercury 1.38 minutes. The difference is 59 minutes. The market had declined from April 22 four points. From April 30, 1940 on, we dropped another four points.
June 10, 1940: the speed differential between Mars and Mercury geocentric was 59 minutes. On that day, we opened low and ran up wildly 4-1/2c. After further slight strength for two days, which brought the price up an extra cent above the extreme high of June 10, we dropped according to this rule and made new lows.

In a six months' period, we have therefore three cases where the Mercury-Mars differential speed of 59 minutes occurred. Each time a decline was noted. Each time the amount of the decline was about 4c. If you check previous years, you will note that there is only once a case, on June 3, 1938, when the rule failed, and even then we reacted two points during the next three days.

RULE NO. 3
MARS-MERCURY LONGITUDINAL DIFFERENCE OF 161 DEGREES 32'18"

While we are at differentials of Mars and Mercury, I shall give you a rule that has to do with a geocentric differential of these two planets. Each time these tow planets are in geocentric longitude 161 degrees32'18" apart, big solid up moves begin. (This has
nothing to do with speed!!)

Example:

April 6, 1935, Mars was at 16 degrees Libra retrograde (moving backward) while Mercury was then at 27 degrees Pisces, or 161 degrees apart. A sharp up ward move followed.

On april 17, 1937, Mars was at 5 degrees.29 minutes Sagittarius retrograde while Mercury was at 16 degrees 29' Taurus, or 161 degrees apart. A sharp run-up of two days occurred. June 20, 1937, Mars at 19 degrees 50' Scorpio and Mercury at 10 degrees 50' Gemini, 161 degrees apart. The market started a big up move at that time. August 21, 1939, Mars at 23 degrees 58' Capricorn, and Mercury at 12 degrees11' Leo, started the big up move before the War began.

We note that a distance of 161 degrees between the planets Mars and Mercury can only occur every two years at a time when Mars is retrograde. It takes Mars two years to get around the Zodiac. The moves that do come off are very strong. The positions of these planets belonging to the last case can be found in Raphael's Ephemeris for 1939 on page 17 under date of August 21.

RULE NO.4
MERCURY RETROGRADE POSITION OF ONE YEAR AND ITS EFFECT A YEAR LATER ON THE SAME DATE

We use Mercury's position at the moment it turns retrograde. This is only possible when we look at it form the earth. Therefore, we have to use the geocentric positions as given in Raphael's ephemeris. Rules of the kind I give now are very hard to explain in words. We have to look into our wheat charts and pint out the positions since the picture actually talks and shows the effect. On January 23, 1936, Mercury turns retrograde at 17 degrees 35' Aquarius. When this point is reached the year after, on January 23, 1937, we find that a three days rally came in.

On January 5, 1937, Mercury becomes retrograde at 1 degree 31' Aquarius. The next year, i.e. on January 5, 1938 in spite of the rise previous to that date, the market rallied further from this day on for three days. Thus, we had an up move from January 5, 1938 on.
On December 20, 1937 Mercury retrograded at 15 degrees 36' Capricorn which therefore called for a rally on the very same day a year later i.e. on December 20,
1938: actually we made a low on that date. We were right to expect an up move.
On December 5, 1938, Mercury retrograded at 29 degrees 46' Sagittarius. The effect of this retrogradation was to be felt on December 5, 1939. We made a gap
upwards on that day, rather, to be more specific, between December 5 and December 6, 1939. It was a wild movement of nearly 18c before the effect wore off.
On November 18, 1939, Mercury went retrograde at 13 degrees 58' Sagittarius. Its effect will be felt on November 18, 1940.
The wheat market from this day on is due for a rally of at least three days according to the rules given.

We note that the dates given are gradually moving backwards in the calendar. The difference amounts to about 16-18 days form one year to the next. Let us check this:

January 23, 1936 are 18 days backwards.
January 5, 1937 to December 20, 1937 are 16 days backwards; December 20, 1937 to December 5, 1938 we have 15 daysbackwards, from December 5, 1938 to
November 18, 1939, we have 17 days backwards. So that, it is easy to see that the retrograde points of Mercury from year to year are retrograding themselves, using a rate of about 17 days.

RULE NO. 5
MERCURY'S RETROGRADE POSITION NAD ITS ZODIACAL VALUE AT THAT TIME COMPARED TO THE SAME MERCURY POSIION A YEAR AGO

We use the same positions as given in rule No. 4 each time planet Mercury turns retrograde. Instead of using the date in the calendar, we now use the longitudinal
position of Mercury, which necessarily must differ as you soon will see.
We follow the longitude of the planet Mercury until it reaches the very same degree and minute in the Zodiac at which place it turned retrograde the cycle previous.

January 23, 1936, (see above) shows the retrograde position of Mercury 17 degrees 35' Aquarius. This very same place is passed by Mercury again on February 26,
1937. this was an important low from which a sharp upward move began.

January 5, 1937 Mercury retrogrades at 1degree31'. The year following we run across this place on February 9, 1938. It was the very top of the year for wheat.
The December 20, 1937 retrograde place of Mercury find its "echo" on January 23, 1939. We have a three days upward move from then on.

December 5, 1938, the retrograde place of Mercury gives us 29 degrees 46' Sagittarius on January 5-6 1940. we made the second important top for wheat two days before and, on that specific day we made a gap downward and, a gap, whatever its direction, up or down, means the trend is in the direction of that gap and never against it. I have not said much about gaps as yet. Bear in mind that they are important and must not be slighted. A gap upward (meaning a space is left open between the trading of one day compared to the trading area of the next day) indicates strength upward. A gap down means weakness.
Gaps are not always left open; strength or weakness may be but for a few days.

However, when a gap is left open such a place must be watched on the charts for later use. Invariably at some time such "leftopen" gaps will be closed. We had a gap open on December 12, 1939 which was closed during the January decline 1940. The gaps left open on October 9, 1939 was covered during the May drop of 1940.

Ellipses oftentimes have to be laid through gaps to produce perfect settings. Sometimes also a movement jumps out of an ellipse with a gap, moves on for a few days, reacts and jumps back into the ellipse once more and finishes its run within the ellipse to its end.

November 18, 1939 finds Mercury at the retrograde place 13 degree 58' of Sagittarius. We reach this place again between December 18 and 19, 1940. This rule No. 5 is not quite as good as rule No. 4 for practical use.

RULE NO. 6
MARS IN GEOCENRIC LONGITUVE PLUS 330 DEGREES

Here is a rule that does not occur very often. Whenever it can be used, grand results are obtained. We use the position of Mars in geocentric longitude and the value to be used is 16 degrees 35'. The signs which we have to use change from year to year backwards. In simper words, we add to a value once established 330 degrees. As stated above the Laws of Nature are very intricate and hard to explain, but when looked up on charts and in the ephemeredes
you can grasp what I mean. We look up the Raphael's Ephemeris of 1931.

Look at Mars on July 9-10, 1931. the value there shows 16 degrees 35' in the sign of Virgo. The year following at exactly that date we had the enormous bear market low of stocks within a day. Note, that the sign of Virgo was used and no other sign gives results, at least not for the year 1932.
On July 9-10, 1932, you could buy your head off and make monstrous profits. I said above that you had to add to theJuly 9-10, 1931 position exactly 330 degrees to arrive at the next important point from which to measure. Thus we say: 16 degrees 35' Virgo for Mars, the start on July 9-10, 1931 plus 30 degrees gives 16 degrees 35' Libra; plus 30 degrees gives 16 degree 35' Scorpio, plus another 30 degrees gives 16 degrees 35' Sagittarius; plus 30 degrees brings us into Capricorn; plus 30 degrees gives Aquarius, plus again 30 degrees gives Pisces; plus 30 degrees more brings us to Aries; plus another 30 degrees Taurus; plus 30 degrees gives Gemini, plus 30 degrees more gives Cancer and once more 30 degrees gives us 16 degrees 35' in Leo. All told we moved the position of Mars 350
degrees further up. Then we look in the ephemeris for the date on which this happens. We find it was on October 18-19, 1932. A year later we had a big low.
As I said we cannot use this day but we have to use exactly a year later and find we are again at a monstrous low although we were just one day late to get the extreme lowest point. An 18c rise followed immediately.

In fairness to my work, going back once more to the July 10, 1932 date I wish to say that stocks kept on rising as we all recall, but wheat did not rise immediately, although we may term these few days of early July 1932 the BEAR MARKET lows. In fact, wheat declined down to July 17th 1932 and then got the vast rise. The decline of these extra days amounted to 3c which is nothing to worry about, provided one knows that a 10c rise follows right thereafter. Anyhow, wheat went from 50cnets down to 47c yet. The rise was 10c right thereafter.

The next date must necessarily be 330 degrees further in Mars' motion. To the newly found value we have to add yet one full year. Thus we use: October 18-19, 1932, Mars at 16 degrees 35' Leo plus 330 degrees gives us: 16 degrees 35' Cancer.
This value was reached by Mars on August 9, 1934. Add one full year to it, gives us august 9, 1935. What happened at this time? We were in the midst of a minor reaction that began august 1st 1935. We reacted until August 19th 1935 the amount of the reaction being 3c just like it happened back in 1932. However, we rose after the 3c reaction had taken its course precisely 21c. From the place we bought, according to this law, we rose 18c.
Going backwards from Cancer 30 degrees is the same as if we go forward from Cancer 330 degrees. So that for the next point we have to take Gemini as sign and the same 16 degrees 35' therein. This occurred on June 7th 1936. On that day Mars runs through 16 degree 35' Gemini. A year later, June 7, 1937 as per rule, we find ourselves at the major bottom for wheat, and even then, although it was the bottom, we hung around with sharp ups and downs until June 2oth. This happened in Chicago wheat. In Winnipeg wheat we made the low on June 7-8 and began to move upward without approaching the low levels again. Such
conditions are occurring quite often between Chicago and Winnipeg. They should be ignored for practical purposes. As said before, we are not trying for the last eighth but we try for swings. He who bought on June 7, 1937 in either market had the bottom.

The next crucial point lies 330 degrees ahead and it is 16 degrees 35' Taurus which was due on April 4, 1938. Add one year to this value and get April 4, 1939. It was the very bottom form which wheat took a two months run upward to June 1, 1939.
After this our next date is due when we go 330 degrees further form 16 degree 35' Taurus. This is 16 degrees 35' Aries. This value is crossed again on January 28, 1940. Adding to it one full year, we obtain January 28, 1941 and you can bet your boots than anyone who buys on this day some wheat will run into big profits according to this rule.
All we have to do to get these pints and project from each crucial point, 330 degrees and add one year; easy, isn't it, if you know of this as you now do. In this type of work we have to do whit points in the Zodiac that have been established a year prior. Nothing is there on the actual day to make you see the change
of trend, and just the same it is there, invisible, though active. This is the big secret of the ancients which they reproduced in code form. It reminds me quite often of the old Vaudeville show when a fellow pulled out of his shirt sleeves a lot of rabbits or doves. We could not see them, but they were there just the same.

It is suggested that your go over this procedure very carefully and note how I have done it. You may have to work a week on it if you have no experience in projecting degrees and signs, but you better learn these rudiments of astronomy until you dream about them since the further we go into the subject now, the more we will have to count and measure and bring forth "invisible" points and make the commitments right.
As you note, in this rule we have had no miss whatever. It worked each year from 1932 up and it did so further back too, only I do not want to bring too many examples. Once understood, you do further checking backwards yourself and gain experience.

Remember though, when you go back you have to deduct and not add! To get the 1930 or 1931 date you will have to use the signs of Libra, Scorpio, Sagittarius etc. in the 16 degree 35' position for Mars. This law can also be used for trading in stocks.

RULE NO. 7
THE EFFECT OF PERIHELIUM OF MARS AND VENUS

We look at page XIX of the Nautical Almanac of any year and find a paragraph starting with "Elements of the planetary Orbits'. Use the lower list in whose middle
you find a heading: Mean Longitude of the Perihelium. This is what we need.
Perihelium means the point where a planet is nearest to the Sun; Aphelium means the point that is furthest away from the Sun.
These points lie opposite of each other, in astronomical expression they are 180 degrees apart. This necessitates on your part that your learn by heart the various signs that are opposing: Aries opposes Libra, Taurus opposes Scorpio, Gemini opposes Sagittarius; Cancer opposes Capricorn; Leo opposes Aquarius; Virgo opposes Pisces. We only quote one half, since the other side is just turned around.
(See Illustration No 1)
The Perihelium for Venus is given as: 130 degrees 42'46".0
The Perihelium for Mars is given as: 334 degrees56'9".9
This equals in sign to: Venus 10 degrees42' Leo' and Mars 4 degrees 56' Pisces.
The opposite points or the Aphelium points of Venus and Mars are at: Venus 312 degrees 42'46".0 or 10 degrees 42' Aquarius. Mars 154 degrees 56'9".9 or 4
degrees56' Virgo.
I have discovered that whenever one of these two planets pass its Perihelium in geocentric longitude (also over the Aphelium), we get changes in wheat of a
few days duration. It means that Venus of Mars must pass over its own perihelium.
The passage over the Perihelium happens once a year with Venus, unless the planet becomes retrograde shortly after this point has been passed. In that case the planet will turn backwards and cross the point backwards, then, when it becomes direct in motion once more and naturally has to pass
the point a second time. Mars passes its perhelium only once every two years. The exception, a treble passage, occurs very seldom.
Venus passing over its Perihelium (10degrees42' Leo)

Year Date Effect

1935- June 17- at an important low
1936-July 26-at a good low with strong up move following
1937-June 17-at a good low; strong up move develops here
1938-June 17-in a downward move, however, after dropping 3c more the market rallied back to this level as prevailing on this day by June 21st, even exceeded the level by two cents.
1939-August 11-at important low levels just preceeding the war rise.
1940-Sept. 18-19—the effect should be a low level. Mars passes its Perihelium (4 degrees56' Pisces geocentric)

Year Date Effect
1932-March 2 in an important top area; the range of the day is within a point from the actual top. A substantial drop follows.
1934-Feb. 10- in a top area; we are 2-1/2c from the peak. After a few days sidewise movement a substantial drop follows.
1936-Jan. 20-in a sidewise movement; we are 3c from the peak and a substantial drop follows.
1937-Dec. 28-the market had moved upward previously and is developing a sharp run upward, which amounts to 11c.
1939-Nov. 27-the market had moved sidewise previously and starts a sharp run upward, which amounts to 22c.

How do we recognize in this case whether an up move or a bad down move is coming?
Answer: -The high which had been made just previously, if passed, tells definitely it is an up move. Therefore, when commitments are made on this rule on the down side we have to carry a reverse stop a half point above the previous high.

We have now examined the perihelium of Venus and Mars. Mercury's effect is not substantial enough to warrant its use.
Venus, however, shows that its passage over the perihelium gives important lows on which to buy. Mars produces it its own passage over its own perihelium sharp moves either up or down, as we have seen.

RULE NO. 8
THE EFFECT OF PERIHELIUM BY USING HELIOCENTRIC POSITIONS

We use Venus as example. In rule No. 7 we had to use the positions given in Raphael’s Ephemeris. In the present case, we use the positions as given in the Nautical Almanac; i.e., the heliocentric positions, 130 degrees 42’ instead of 10 degrees 42’ Leo.

Year Date Effect
1937 – March 3 – we are in a strong up move; the next day the price drops a 1/2c below the March 3 price, then we run up 20c.
1937 – Oct. 12 – a low followed by sharp ups and downs within a 6c range for three weeks.
1938 – May 25 – a gap down ward, followed by an 8c drop.
1939 – Jan. 5 – a top (Venus at 130 degrees 42’).
1939 – Aug. 17 – at this place we reach a high point made July 31 previous, run through it the next day for a 7c up move.
1940 – March 29 – a low followed by a 9c up move. The low level of March 29 was broken by ½ c on April 3, 1940.
1940 – Nov. 9 – is date of next event.

The examples show that Venus heliocentric passing its perihelium place produces strong moves. However, we also see that they may be either up or down and,
therefore, whenever we do use this method we absolutely have to work with reverse stops. We have better rules to come.

RULE NO. 9
MERCURY GEOCENTRIC PASSING OVER 19*36’ SCORPIO AND SAGITTARIUS, ALSO OVER 24*14’ CAPRICORN PRODUCES BIG CHANGES

Whatever the cause may be, why there are changes produced when Mercury passes certain geocentric degrees we do not know. The rule gives results.
The values are 19*36’ Scorpio and Sagittarius, also 24*14’ in Capricorn.

Examples:
We use now the value 19*36’ Scorpio.
Year Date Effect
1935 – Nov.22 – a top, followed by a 6c drop.
1936 – Nov. 14 – an important low from which a major up move starts.
1937 – Nov. 7 – a major low for Wheat.
1938 – Oct. 30 – a top, followed by a 3c drop; we are in a bottom area, and the 3c drop brought the low three days later.
1939 – Oct. 24 – we are at that time in an up ward movement and the price level of this day is at a small reaction low, which is broken by 1/2c three days later; and then we moved up strongly.

We now use the value of 19*36’ Sagittarius.

Year Date Effect
1935- Dec. 11. – a low followed by an immense gap of 3-1/2c and a top the day after.
1936 – Dec. 3 – in an up move of major proportions.
1937 – Nov. 26 – a major low.
1938 – Nov. 21 – an important low, followed by a 3-1/2c up ward move. The price range at that time was narrow.
1939 – Jan.. 3 – a top.
1939 – Dec. 30 – a top.

We now us the value of 24*14’ Capricorn.

Year Date Effect
1935 – Jan. 8 – a top – major.
1936 – Dec. 27 – a major top.
1938 – Feb. 4 – in a top area, less than 2c from the top.
1939 – Jan. 29 – a top, followed by a decline.
1940 – Jan. 21 – in a top formation followed by a 6c drop.

While the first two values bring forth important changes of trend, the last value brings forth all tops in the five years’ period tested, which is quite encouraging to make commitments upon. The opposing places bring also changes: 19*36’ Taurus, 19*16” Gemini and 24*14’ Cancer.

RULE NO. 10
HELIOCENTRIC LATITUDE OF SATURN UNITS OF 1'21".2

I have found the value of 1'21".2; where I have it from I do not recall any more. This value produces in 1937 the extreme tops and bottoms, and if you recall the Wheat movements of 1937, you know that it was a question of 40c to 50c from a bottom to a top, or from a top tot a bottom.

Unfortunately, I have not used that rule any farther since I found it on June 6, 1938, as my date of entry shows. We shall find soon by adding the value mentioned above through these years up to date and see whether or not it still gives these extreme tops and bottoms.
We take the Nautical Almanac of 1937 and open page 201. In the middle of the page, we find a column marked "Heliocentric Latitude of Saturn", given every 8 days. In an adjoining column, we have the variation of the movement per day. This enables us by adding this variation two times to March 29, 1937, to arrive at the proper Latitude for March 31, 1937, which was the top for Wheat.

March 29, shows that the Heliocentric Latitude at Midnight on that day in Greenwich was –2*12'29".0, that the variation per day was 2".39. This latter value
we add twice, and we obtain:
2*12'29".0
2".39
2".39
2*12'33".78

To make the work easy, we shall call this value 2*12'34".

We also shall add a straight 1'20" instead of the very exact value of 1'21".2 to facilitate the work. However, as you will note, in nine months' time we are off a few seconds in Saturn's latitudinal motion.

March 31 1937
2*12'34" top for Wheat in 1937.
Add: 2'40"
2*15'14" bottom June 7, 1938
Add: 1'20"
2*16'34" major top July 16, 1937
Add: 2'40"
2*19'14" major bottom Oct. 7, 1937
Add: 1'20"
2*20'34" major bottom Nov. 24, 1937

At this place, we are off six times 1".2, or 7".2 all told. Therefore, the value should be 2*20'41".2. To this we add 1'21".2 which gives us2*22'2".4. The date is January 5, 1938, which was a top. Adding again 1'21".2 brings us to 2*23'23".6, or to February 25, 1938, which was an important top.
If we would continue with these values we get the following dates: April 28, July 5, September 27, in 1938.

In 1939, you will note that between June 7 and June 15 the direct motion in Saturn's Latitude changes direction at 2*29'15".2. It starts to go backward. The motion per day is very slow and only by February 27, 1940 do we find one of these points crossed. The next value backward, by deducting from the
February 27, 1940 value, we find May 18, 1940.

However, in order to get the in-between movements which were very important we have to divide our value 1'21".2 into half, and us the value of 40".6.
This we begin to apply from February 25, 1938, on. Therefore, adding 40".6 to the value of 2*23'23".6, which is equal to February 25, 1938, we obtain 2*24'24".2,
which belongs to March 28, 1938, an important bottom. There seems to be continuity in this cycle which is of great value.

RULE NO. 11
THE 6 INCH ELLIPSE AND ITS USE

In "Time Factors" I already had put special stress on the use of the ellipse. The idea about measuring movements with ellipses on the charts came to me when I considered that planets also move around the sun in ellipses.
The size of the ellipse which we have to use is reproduced here correctly. Be sure to reproduce it on Celluloid of medium thickness by going over the contour with a pin point to get its picture on to the celluloid.
Stores that carry drawing materials also carry such celluloid sheets. However, when you have completed the ellipse do not be in a hurry to separate the ellipse or cut it out with scissors, since the 123* angle of which I shall treat later must be drawn into the ellipse picture as shown in Illustration No. 3.

The two axis also have to be drawn into the ellipse; they form often time and price resistance. This ellipse was designed for K & E paper
and does not give results on any other. When you have a chart before you such as the wheat chart of 1939 we make some trial tests. We set the end of the ellipse which I shall mark point X on the important lows or highs as they were made. July 25, 1939 is such a day; so is October 8, 1939.

Set it there, look forward and note how nicely the movement did run within this ellipse, until it was abandoned as time progressed. The corner of August 30, 1939 becomes an important point for the position of the next top which was made on September 7th, 1939. The action of the trend may be compared to a ball that runs across a roulette wheel, bouncing from one side to another in rather weird movements. When the "wall" of the roulette bowl is reached, which we shall call the "periphery" of the ellipse in our case, a movement to the opposite side begins the angle of re-bounce being different each time.

It is suggested that you retain the idea of the movement of a small ball in an oval roulette bowl, whereby the ball's movement represents the trend taken of the article " wheat, cotton" or whatever we follow. Remember constantly, that the wall of the roulette bowl makes the ball bounce back, unless, that wall is hit with such tremendous force that the ball " jumps" over the wall. This very same condition happens in extremely wild markets. We call such jumps "gaps". They overthrow temporarily all calculations-actually a new cycle begins right at this point and new measures must
be taken from that point on.

Once in a while the "jumping" over the ellipse is followed by a top right there such as it happened end of December 1939 in wheat. While it is important to know when such jumps occur, they just simply cannot be found by setting the ellipse. They must be found via our astronomical rules and a guess, whether it jumps or whether it does not jump over an ellipse does not help us.

******ILLUSTRATION NO.3. HERE**

ACTUAL SIZE OF 6 INCH ELLIPSE WITH ANGLE OF 123*

The ellipse is more or less a helper that locates the exact price level at which changes are due on a certain day and nothing else. We will find when checking
through a few years that in narrow movements ellipses are not of much help, although they should be used just the same. This is the way ellipses should be used
when markets are narrow; set the point X to a low, watch the secondary reaction and put the periphery into the low point of this secondary reaction. The trend would be upward as long as the price structure remains inside of the periphery. As soon as it peeps beyond, consider the trend as changed.

When the trend is down ward, we reverse simply the picture as well as the ellipse and using the illustration above we set the ellipse into a top first, watch for the secondary comeback and lead the periphery of the ellipse through this peak of the secondary comeback. As we decline from the secondary top we must not cross beyond the ellipse but strictly stay inside of it; if we do, the trend changes to an up-trend.

For the setting at point X of the 9 inch ellipse we use the low points of a move. However, the possibility then exists that we can lay any number of ellipses through a given point. We have to restrict their number by laying the ellipse through previous highs or through gaps in case gaps were made. These highs or the gaps must not be too far away otherwise they are useless. Here is an example which show what I mean: Take the low of October 8th 1939 and the previous peak of October 6th 1939. Set the ellipse point X at the low of October 8th and let the left side of the ellipse run through October 6th 1939 and you will have the perfect lay of the ellipse, giving you what I call the “corner” in wheat November 24th to 27th 1939.

RULE NO. 12
THE ANGLE OF ONE HUNDRED AND TWENTY-THREE DEGREES INSIDE THE ELLIPSE

Whenever you read a book note that the following pages are of the greatest importance: page 40-42, page 70-72, page 80-82, page 123 and page 144. The gist of the story is lying in these pages. This I have found out from the study of dozens of ancient works. I also discover that exactly one hundred pages late rfrom an important page you will find ideas explained that are very similar to what was said a hundred pages previously. This statement I have to make since in the works of Confucius and Buddha it was so pronounced that, to get better explanations of certain pages, I merely went 100 pages further and obtained much clarification of the page one hundred pages before.

I have never seen any of the writings of Confucius or Buddha in original texts, not even pictures of it. But, the printers whose job it was to print translations, assembled their type in such a way that what I am stating above is brought about. Nature does that, of course, and the printer Is but the innocent tool of Nature.

Why and how I struck on the idea to build a 123* angle into the ellipse I do not recall anymore. I believe it was due to the fact that the cycles of the Saturn-Jupiter conjunctions geocentric (Herschel Text Book on Astronomy explains about that very nicely) contain 369* and one third of this is 123*. At any rate, I set this angle into the ellipse as shown in the illustration No. 3. In order not to disturb that picture by marking 123, I shall put outside of the angle, away from the
picture the initials SJ, meaning Saturn-Jupiter angle. The ends of this angle will be marked E and F.

The settings of this angle inside the ellipse gives very fine results to locate tops, bottoms, gaps or what have we. Use point E at an extreme low or at an extreme high so that the line leading to SJ comes upright into a date line such as October 8th, 1939. You will note that first of all the November 24-27 lows of 1939 are coming to the periphery, also that the SJ-F line is jumped over with a gap up ward in the middle of the ellipse on December 12, 1939. When we have very sever movements such as was the case in May 1940 in wheat we have to lay the ellipse in such a way that line F-SJ is set into the coordinate instead of line E-SJ. This way we have to lay the ellipse together with the 123* angle the long way.

Lay line SJ-E through high of April 22, 1940 and May 10, 1940. this brings the low of May 16, 1940 into the coordinate of that day and the end point X of the ellipse also fits into this day. The real low of 74-7/8 in Sept. wheat is from the high of May 10, 1939 just one ellipse diameter down. Another example of laying the ellipse:
Wheat 1940, set ellipse at low of February 1st. Note how the movement runs in the ellipse upward, with a one day exception on April 10th, when it moved out beyond by 1/2c but jumped into it again the day after with a gap upward. Only by end of April 1940 does the price abandon the upward trend and then, to help the trader, the price remained steady for fully four days and only then dropped.

Experiment around with this 123* angle and use in normal markets only the "E" setting as explained above. Note: In abnormal markets or at very high levels, set ellipse at tops or bottoms at point F instead of point E. ( see Ill. No. 3)