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)