GANN'S LAW OF PRICE MOVEMENT

alignment which correlated with the August 25, 1987 Stock Market top (See Newsweek,

8/17/87) .

3) The Foundation For the Study of Cycles is an international, non-profit, research and

educational institute, incorporated in 1941 by Edward R. Dewey. The Foundation is the

worlds center for multi-disciplinary cycle research and education.

In our previous articles we revealed scientifically based research showing a high degree

of correlation between cosmic cycles and events; and specifically Stock Market cycles

and events.

Since the publication of our last article, I was interviewed by Richard Saxton on KWHY

in early March, and again on May 20th. In the March, 1994 interview, I forecast that the

S&P would stay up into March 21st, and then continue its decline. Our March

Newsletter had already forecast that the next significant turning point would occur

around April 4-6th. The S&P did stay up into March 21st, and then dropped

dramatically into April 4th, exactly as I forecasted it on KWHY, and in our Newsletter.

During the May 20th interview, I reviewed my May 1st Newsletter forecast which

recommended buying the leveraged OEX May options. We had forecast a big move

starting on the 16th. The leveraged May 420 Call options generated an amazing 20 to 1

return from May 16th into the 19th. Our June Newsletter includes trade confirmations of

these amazing returns.

When I tell traders that the accuracy of these forecasts are based upon natural laws

and Ganns Law of Vibration Method (Celestial Harmonic Analysis), many are skeptical

until confronted with the historical evidence. Gann was correct when he referenced

natural laws as the most important indicator for Stock Market timing. Was it just a

coincidence that the previous swing low occur at the time of the Solar Eclipse; and

another coincidence when the market rallied into the Lunar Eclipse, generating 20 to 1

returns? How were we able to pin point exactly when the fast move would start? Do

Eclipses generate changes in mass investor psychology?

On January 14th, 1991, the Dow Jones Averages made its intra-day low one day prior

to the Solar Eclipse, and then rallied over 500 points. In our article published in

Traders World magazine entitled "Heavenly Influences and the 1990 Stock Market Top", we

stated, "Hopefully, the light will be seen before the next Solar Eclipse, which occurs

on January 15, 1991. Interestingly, there are also several Celestial Harmonic indicators

which occur the day before, and the day after this eclipse. This portends a major

change in mass (investor) psychology."

Our December 16, 1990 Newsletter stated, "If the international situation worsens, a

drop, into the Solar Eclipse on the 15th, is likely....The Market should trend in one

direction, going into the 8th/9th, or into the 15th. The 8th/9th also has some longer

term harmonics that could generate a 1 or 2 day reaction in the Market. However, the

most important time-frame will be the day before, and the day after the January 15th

Solar Eclipse (6:43 PM EST). Usually, a Solar Eclipse date is not a turning point date,

however, in this case there are High Energy Harmonics occurring at the same time,

therefore, fast moves with lots of action will occur."

On January 15th, Jeff Bower (Financial News Network) stated, "most of the Market

timers are short or flat, except Greg Meadors, whose Market Systems Newsletter states

that a "rally into the 18th is virtually a lock." The Market did decline going into the

Solar Eclipse, which was followed by a fast move, a 150 point rally, lasting two days,

going into the 18th, exactly as forecast one month in advance!

Understanding how mans psychobiological rhythms (mass investor psychology) are

affected by Cosmic Rhythms, is the essence of Ganns Law of Vibration Method.

In Ganns Law Of Vibration interview he states, "Science teaches that an original

impulse of any kind finally resolves itself into periodic or rhythmical motion, also

just as the pendulum returns again in its swing, just as the moon returns in its orbit,

just as the advancing year ever brings the roses of spring, so do the properties of

the elements periodically reoccur as the weight of the atoms rises. From my extensive

investigations, studies and applied tests, I find that not only do the various Stocks

vibrate, but that the driving forces controlling the Stocks are also in a state of

vibration." "These vibratory forces can only be known by the movements they generate

on the

Stocks and their values in the Market. Since all great swings of movements of the

Market are cyclic they act in accordance with periodic law. After years of patient study

I have proven to my entire satisfaction as well as demonstrated to others that vibration

explains every possible phase and condition of the Market."

Therefore, all of Ganns other methods are subservient to this Law Of Vibration. When

one learns how to use this Law of Vibration, and also incorporate our Harmonic