The September 21, 2001 Bottom
Most people believe the the events of September 11 (World Trade Center attack) created the selling climax and reversal on 09/21.
However, the precise timing of the September 21 turn was determined by multiple previous turning points (Pivots), as far back as 1962.
The aggregate of timing elements for 09/21 gives us a classic example of how major turning points may be pre-ordained. Fundamental and geopolitical shocks to markets often occur during a time period projected by timing elements that preceded these events by many decades. These historical turning points determine the timing of future turning points. Fundamental and geopolitical events are coincidental.
Here are multiple examples and charts of a few of the timing elements that projected the 09/21/01 bottom.
Three Term Continuous Proportion Projecting 09/21/01: 1962 - 1974 - 1982 - 2001
(Three term continuous proportion relationships are as simple as A is to B as B is to C; 2 is to 4, as 4 is to 8. 4 is two times 2, and 8 is two times 4. This simply illustrates that the values 2-4-8 are related by the ratio 2.
The three values represent a continuous three term proportion. In this example, 4 is the mean proportional between 2 and 8. The value 16, 2 times 8, would be the fourth term, etc.)
October 4, 1974 - August 9, 1982 = 1981 days; this is the first term of the proportion.
June 25, 1962, and October 4, 1974 = 3093 days; the second term of the proportion.
The ratio of 3093 to 1981 = 1.56133. Therefore, the third term is 1.56133 times 3093.
1.56133 x 3093 = 4829.2
3093 squared divided by 1981 = 4829.2
August 9, 1982 - September 21, 2001 = 4829 days. This is the third term of the proportion.
There are exactly 4829 trading days between August 9, 1982 and September 21, 2001.
1982-2001 (4829 days) is to 1962-1974 (3093 days) as 1962-1974 is to 1974-1982 (1981 days).*
*In this example, the market moves dictating the 2001 bottom are not arranged in chronological order. There is no prescribed arrangement for the moves. Spatial relationships and orientation are skewed when points are transferred from a sphere to a plane.
Click this chart to magnify it:
Before leaving the 3093 and 1981 day moves, I'll show you how they also carried DNA for 2000 S&P top.
When the 3093 and 1981 day moves are used to form the hypotenuse of the template's large right triangle, the perimeter of the larger of the two interior right triangles equals 9530. There are exactly 9530 days between the 1962 bottom and March 24, 2000, currently the historic high day for the S&P 500.
Click this chart to magnify it:
A Second Three-Term Continuous Proportion Projecting 09/21/01: 1976 - 1987 - 2000 (DJIA) Tops
What you have seen in the preceding example is not an isolated occurrence; it is not a coincidence. You saw three bottoms project a major turning point more than thirty-nine years from the first point. The next example shows that three major tops, 1976-1987-2000 (DJIA) also generated the September, 2001 bottom. This projection errs by one day. There are 6413 trading days in the series, and “one out of 6413” is within the three day window allowed for long term projections. Ermanometry projects a focus day and allows one day either side for the three day window. The margin for error is approximately one-twentieth of one percent.
Major tops occurred in 1976, 1987 and 2000.
These tops led directly to Sept. 21st, 2001.
September 22nd 1976 - August 25th, 1987 = 2760 days
August 25th, 1987 - January 14th, 2000 = 3132 days
The ratio of 3132 to 2760 = 1.1347
1.1347 x 3132 = 3554.2
There are exactly 3553 days between August 25th, 1987 and September 21st, 2001.
Click this chart to magnify it:
A Third Three Term Continuous Proportion Projecting 09/21/01: 1987 - 1990 - 1994 BalancePoint Bottoms
The first chart in the The Traders Journal article, available in PDF form in the Articles section of this website, shows the above three bottom points. That chart and accompanying text illustrates these pivots projecting the S&P and DJIA 2000 tops and the 2002 bottom.
Here, I'll show how they also project 01/14/00 (DJIA top) in a different manner, and 09/21/01.
A BalancePoint Projects the January, 2000 DJIA Top and September 21, 2001
It is important to show at least one BalancePoint at work. Remember, a BalancePoint is the mid-point of a CompoundPivot.
From April through November, 1994, the market moved sideways. In December a multi-year steep advance began. Prior to this advance the DJIA made an important bottom on 11/23/1994. The corresponding low for the S&P occurred on 12/09/1994. These two lows formed a CompoundPivot. The BalancePoint is 1047.5 days from the 10/11/1990 Gulf War bottom and 1800 days from the 10/20/1987 crash low.
BalancePoints often have half-day values in their day count. When a CompoundPivot span is an odd number of days, halving it for the BalancePoint results in the half-day. The half-day is counted when the count from a given pivot to the BalancePoint is less than 1500 days; not counted if it exceeds 1500 days. That is why the count from 10/20/1987 to the 1994 bottom BalancePoint is 1800 days, not 1800.5 days.
The template below shows the 1800 value as radius AB, and the 1047.5 value as the distance from the center of the circle to a point inside the circle, generating the value 3093.08 on BC.
There are exactly 3093 days from the 10/20/87 low to the January, 2000 major DJIA top.
That is equal to the number of days between the 1962 bottom and the 1974 (S&P) bottom, an example of the interplay between the DJIA and S&P.
The following template introduces another method of shifting placements. Refer to the previous template, and note the BA and AC line segments. Let’s consider these segments as the beginning of an expanding rectangular log spiral.
AC= 2515.38
BA = 1800
The ratio of AC to BA = 1.3974
Therefore, the next segment of the spiral is 1.3974 x 2515.38 = 3514.8
DC equals 3514.8, BD equals 1800. On the previous template, 1800 appears on AB. The 1800 value shifted from the hypotenuse of triangle ABD, in the previous template, to a leg of triangle ABD, in the current template. In essence, the log spiral from the first template has been turned “outside in”. The values from hypotenuses BA and AC, 1800 and 2515.38, as well as the next segment, 3514.8, not shown on the first template but generated above, become the altitude and hypotenuse of triangle ABC in this template. If a log spiral was continued, they would form the axes.
Note line segment DC, second template, value 3514.08.
The exact number of days between the 1987 crash low, 10/20/87, and 09/21/01, is 3514.
Bottom line: The values 1800 and 1047.5 generated both the 01/14/00 top and the 09/21/01 bottom.
Multiplication By 3.1416 (Pi) Projects a Familiar Move and 09/21/01
There are 879 days between the 10/11/90 and 04/04/94 bottoms. 879 x 3.1416 = 2761
There are 2761 days between the 10/11/90 and 09/21/01 bottoms.
1976 - 1987 tops. You've already seen this 2760 day move.
1987 bottom - 1998 bottom BalancePoint = 2760 is another 2760 day move. That's why it's familiar.
