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.