Murrey Math S&P 500 Futures Price Reversals Set To: 16 Day Trading Square

by T. H.. Murrey

Theory: All markets are set to Price movement to the right over Time against old highs or lows. Please don’t believe this anymore. This is the wrong way to set your trading frame. We set frames in advance into the future and let the price come to us. It’s much easier.

All markets are running up and down on either side of its current 4/8th MM Line inside its current trading frame. You don’t have to worry how to set it. Our software program sets it. All extremes in markets above (or below) our preset 0/8th and 8/8th are created by “rookie” traders, who are greedy on tops and bail out too late in exhaustion, sell offs.

No experienced trader would have been long any NASDAQ stocks after it had already run up + 100% in only 5 months as of March 2000.

Every software program, Fibonacci Sequence Ratio Future Price Projector said sell last March 15th, 2000, but everyone wanted + 5% more free greed before they would sell. 

No one I know ever heard what W. D. Gann and I said about Time and market speed of appreciation based on each season which is 13 weeks. 

I wrote an article proving that the NASDAQ Index was destined to reverse up at 5,000 simply because it had appreciated from 2,500 up to 5,000 in five months from October to April.

Please go back to the last issue of Trader’s World Magazine and read where the proof is that all price movement is set to math (up and down) and the four seasons to the right. 

On October 8th, 2000 everyone was told the world was coming to an end and all NASDAQ stocks would be worth only 12.50 before they got back down to P.E. Ratios, that would make them worth buying short term. What now?

Stocks reverse by mutual fund computers. There are over 47,000 mutual funds spitting out buy/sell orders faster than logic can tell them what to imagine will happen next.

Most high profile money managers simply let an expensive software program tell them where to buy or sell, off highs or lows, against having to keep 5% in cash. That’s all they do to keep their jobs.

The only true stock indicator, without any computer program, for reversals is seen in reversals of the S&P 500 Futures Index set inside our MM Harmonic Trading Frame.

Pure and simple logic tells us that the S&P 500 Futures Index serves only one good purpose: a trend reversal signal, to allow us to enter “longs” in other markets just as we see it reverse.

There are numerous simpler ways to profit off market reversals than to try and “master” the S&P 500 Futures. You are always late entering S&P 500 Futures trades. This is the hardest market to trade and profit from. Addictive personalities love to trade this market. This market has very few good traders.

The S&P 500 Futures contract is a great “reversal signal” indicator, but it will never replace the S&P 500 Cash Index and S&P 100 Cash Index for telling us when all stocks will stop to the upside or downside. 

We don’t want to discuss an easier way to trade in this article. We have plenty of students who make 20% per month average trading a NASDAQ Index Hedge fund. Why struggle to profit? Simply watch for market reversals.

The cash takes over after the futures reverses in all markets. After the futures reverse in any market, the cash pushes it to its 3/8th or 5/8th moves. We always shift our thinking from the futures to the cash after any market reverses. We decide to change strategy when the futures tell us it is reversing.

The S&P 500 Cash Index, S&P 100 Cash Index, are subject to reversals of the futures.

Please notice the past 7 reverses off the S&P 500 Futures: beginning October 8th, 2000 through October 30th, 2000. The Murrey Math Trading System has automatically set the year 2000 to Time reversals set on day one as October 9th 2000.

Going forward from October 9th, 2000 we should expect to earmark our trading calendar to remind us of future Time Reversals. Please record these reversals and let me know how accurate my simple preset Time reversal theory will end up this next year. 

The 1st Frost, which is 32 degrees, and occurred this year in Davidson County, Tennessee, which is where I, T. Henning Murrey’s grandparents have borne generations since 1794, is the beginning day for raw goods to rot and an end to another growing season. This concept is buried in our souls. The CRB Index is set to the 1st Frost, as winter approaches with the earth’s axis tilted. 

Every society prepares for its winter by gathering nuts, putting up beans, making whiskey, and curing hams so they can gain weight to fend off the cold winter chill. Supply and demand of raw goods depends upon getting commodities picked before the 1st Frost destroys the cellular composition of their converted value. The Time of your days are already numbered. So are growing seasons. The greatest reversal days are already numbered if you start on our 1st Frost Day, which changes each year. We are in a Leap Year presently. In Murrey Math you are instructed to reset your trading frame off preset Times. Most traders start from a high or low which is the wrong way to do it. 
If you really knew back in 1927 how simple it is to trade, would you tell other traders the truth? Gann told the world he would let them know that the crash would come in the 1st Fall Frost of 1929 and the low in the Depression would occur exactly 6 months on the other side of the axis tilt of the Earth, which was July 4th, 1932. You don’t have to go back any earlier than the 1st Frost of 1999, when the NASDAQ Index was down at 2,500. It reversed up fast and 5 months later it had doubled in price. 2,500 to 5,000 in five months has never been done before. Four weeks later it had fallen back 75 percent. Gann said all markets should fall back 50 percent after a fast run up to be worthy of buying short term. Where was Gann when we needed his common sense?

The Time 19.53125 years equals 1/8th speed. Please move forward every 19.5 years from the high of 1929 and see what the Dow 30 Stocks did. It reversed off these old MM 1/8th dates. If you ever come to the truth on this subject you will see it. W. D. Gann and I saw that all markets begin over every fall on the 1st Frost. You have no choice but to convert to our way of thinking, learning, trading, and finally profiting off simple rules. Please try and decipher all those esoteric trading strategies set to cabalistic terse jargon. It takes the average trader one cycle of the moon to unlearn bad trading habits. If you want to speed up your mental habit convert it to pure logic? You must change techniques.

Please come to my web site and look at stocks, bonds, currencies, and commodity charts set to last year’s automatic Time Reversal Dates set off last year’s Frost. We set all markets to the same simple Time Frame: Frost. There are three sets of Internal Time Frames inside one year’s trading calendar:

1) 64 days
2) 32 days
3) 16 day

The Sixteen day Time Trading Frame is a traders’ frame price/speed/ratio that gives you the most profit per run up or down.
Since every investor coming into trading is a beginner. Every market also must start over. Everything has a birthday or starting point. Now, let’s move into this year’s new Time Trading Frame, which started on my birthday. This year we are “running” to: 4, 8, 16, 32, or 64 days, off my birthday, which occurred October 9th 1942, which next spring shall be exactly + 3/8th which is 58.59 years.
My life-span is set to El Nino. El Nino is set to 156.25 years in time. This may be proven going back to minus 10,390 b.c. and the star Soraya that shined into the Pyramid at Giza, in Egypt. This star was called Teli in Gensis. It means ball on a string.
All markets want to reverse off Time Cycles of 19.53125 years. We must learn to be more exact with our Time Prediction Frames. There is no 20-year cycle. There is no 60 year cycle. You must get this out of your trading strategy. W. D. Gann copied this cycle from The Book of fate from China. Did you know it? Please convert to 19.53125 year cycles.

Please multiply 19.53125 years by 3 or 5 or 8 and look for market reverses off this starting point? Hint: I have already revealed this in an earlier article in Trader’s World Magazine some issues back. 

We may start our preset Murrey Math Time Lines: 4 days, 8 days, 16 days, 32 days or 64 days. This is why Muneshia Homma, from Japan, in 1724 said no commodity wants to move in one direction, up or down, more than 10 to 12 days in a row.
Were you really surprised when the NASDAQ Index fell - 75% in only four weeks, when it had just run up + 100% in only 5 months.
Please read how W. D. Gann and I predict about market “doubles” against multiples of the number thirteen. Thirteen equates to the alphabet’s word love and one. One MM Trading Frame of 64 days is equal to one quarter or thirteen. This is how we anticipate Time market reversals forward. We know to begin on the 1st Frost:

# 0 October 9th, zero day,
# 1 October 13th, 25% day,
# 2 October 19th, 50% day,
# 3 October 25th, 75% day,
# 4 October 31st, 100% day.

The Murrey Math Trading System’s 1995 preset Time dates matches up to the T-3 Rule by the S.E.C. This forces every stock trader to align himself to our natural Time reversals by forcing brokerage houses to keep your money for three days after you sell, then give it back on the fourth day. This stimulates cash flow infusions on our preset days, once any market starts reversing on our MM Time Lines. T. Henning Murrey set the market’s rhythm to the hertz magnetism of the Earth: 3:1, four days. Please don’t try and understand it, just use it.
Start of the 2nd (16 day) Frame was October 31st 2000. Based on this, the general markets should fall lower short term. Please look at our chart of the S&P 500 Futures, Dec. 2000 Contract and see for yourself how often the stock market reverses off our preset dates. See Figure # 1. Please begin a count of 4, 8, 16, 32, and 64 trading days for the next year and “record” how many reverses occur on this simple Time formula. 

We are able to predict the future of the S&P 500 Futures market off my birthday, for this year. It will be consistent for the next 1,250 years into the next millennium.

Every sixteen trading days we get stronger reverses. Why waste your trading strategy learning time trying to figure, which is the best Time Reversal Day off which Time Frame. Simply remember to count to 16.

Please look at October 9th and now go out into the future to October 31st for the next reverse. Gann told you to take the last high or low extreme, going back at least one year. and set your square in Time and set your 8/8th.

We believe that with Murrey Math we can fine-tune your thinking by accepting preset Price and Time MM Lines and not waste Time by guessing where to start any Frame.

Does it really matter to you if you miss, by one day, a reversal in the Dow 30 if it moves up + 1,250 points the next eight? The Dow 30 Stocks just went up 1,250 points one day after everyone was bragging about predicting lower lows. Why do so many want markets to drop lower after they are already low?

87.5% of all traders spend too much time studying Time reversals, when they should be cashing in on 2/8th Price moves. Everyone is still thinking the markets are low and we see that you could have made + 482 points in the hardest market to trade, by simply reversing every four days.

Today, we are discussing Time. We want to automatically preset our Time Square and trade off standard Time Lines inside the Trading Frame. We always go back 12 months, then 6, then three months for support or resistance to go long or short against.

If you look at charts done by W. D. Gann, you will arrive at the same conclusion, as we did, that all markets begin each fall on the 1st frost. If you believe thirteen to be a lucky number, please go and see what markets do every 3 months or 13 weeks. A detailed study of major stock market reverses was done by an Australian and he reported that 87.5% of all big moves occur within one week of each thirteen week cycle extending out from the last week in September. Why does this repeat happen?

W. D. Gann laughed at all of you for not seeing his joke in his famous May 1948 Soybean chart. Please go back to October in 1947, and you shall see what I did. He began his famous astrological chart simply off the 1st Frost. It was so simple he hid it from you by calling it May 1948.

Most traders don’t like doing their homework, so they want someone to tell them how, when and what to trade. Now, if the trade doesn’t work every time they switch witch doctor gurus to another one, who will think as they do not as they need. 

Most new rookie traders and old worn out traders are out there trying to learn too much information, when all you need to know is which four ways to measure any market’s reversal. All markets reverse off:
1) horizontal MM Price lines,
2) vertical MM Time lines,
3)45 degree angled MM Lines
4) 11.25 degree MM Speed lines.

Presently, we are addressing the 2nd most critical traders’ strategy which it’s Time. Historical Note: Gann “preached” Time is the 1st factor and Price is second. We have found that with computers (today) Price is # 1.

Time Reversals must be “filtered” into the other primary “filters” that give us directional changes based on thinking and consumption.
Stocks are traded off thinking. Commodities are traded off consumption. You can miss quote, but can’t destroy millions of acres of soybeans, when you see them piled up at the rail head waiting for someone to ship them or let them rot at the next rain. Remember: Gann taught commodities only. He hated stocks because they were subject to overnight lies of a few that affected the entire market. Why be subject to others sins?

Gann would laugh at stock traders for allowing themselves to be subject to losing gains from the whim of news hounds who whip lash entire markets off one sentence of “poor earnings.” Does it happen today?

If coffee falls from too much over supply does Orange Juice fall in sympathy? Does lumber fall when Cotton falls? Do Live Hogs go up when Live Cattle moves higher? Why care? All markets are reacting to:

1) our Internal Harmonic MM Lines,
2) our Internal 5 Circles of Conflict,
3) the last high and low extremes, actually the present 0/8th and 8/8th off the closest 4/8th,
4) where any market is (currently) above or below its MM 4/8th.
Please count how far our futures market ran up or down inside our preset Time Frame:

Trade # 1 fell - 7/8th,
Trade # 2 rose + 3/8th,
Trade # 3 fell - 4/8th,
Trade # 4 rose + 6/8th,
Trade # 5 fell - 5/8th,
Trade # 6 rose + 6/8th,
Trade # 7 fell - one ½ of 1/8th.

No actual extreme high/low reversal is considered when we set our 8/8th. Every other software program sets trading action against the two latest and widest extremes. Wrong.

Murrey Math students prefer to believe what W. D. Gann said on page 64, which was to trade the natural numbers. Do you? We have addressed this natural trading frame in previous articles in this magazine. Gann spoke to the subject of seasonal and anniversary date reversals. We concur. Please don’t fall into the Fibonacci Ratio trap of believing all markets are driven by a desire to want to reverse after 3/8th or 5/8th. Please don’t fall into the bean counting trap of thinking every move is going to be 3/8th or 5/8th. You will miss the fast money waiting for the big move. Please go and count how many moves reverse after only 2/8th.

Why do you think Mr. Gann pushed the 3/8th and 5/8th move theory? Do think he was exiting off your staying in an extra 1/8th? Yes sir. Remember he only stayed in a trade an average of 43 minutes. If he told you to follow the trend, why didn’t he?
Would you be satisfied to close out your positions with only 2/8th profit, or would you want to make the last 1/8th of every move?
The question comes down to whether or not you want to make fast money or try and brag about how many successful trades you made with a high profit margin. Who cares later? This market has run up and down a total of 31/8ths and it still hasn’t escaped our MM Trading Frame set off an Internal Octave set in a square. The Chinese exposed this simple musical box stanza logic in 3,125 b.c.
Each 1/8th, for this market, is equal to 15.625 points El Nino. Each S&P point move is worth + $ 250. Please read forward and count how many total points profit reversing off Murrey Math Price and Time accumulates. 

Everyone can always make any trade the next day after there is no threat of loss. Please read what happened:

1) Reversal (on high at) MM 7/8th Time Line: 1,456 - fell to 1,343.75. Stopped down on MMT Line 2/8th, exactly. Fall: exactly - 7/8th) inside MM Harmonic Trading Frame. Short: winning points in five trading days: + 112.50 points profit. Special Notice: gap down open: Sell Signal

2) Reversal (on lows at) MM 2/8th Time Line: 1,343.75 - up to 1,390.625. Reversed up on MM 2/8th Line exactly. Long: winning points (in two trading days) + 47 points profit. Stopped up on MMT Line 1,390 exactly. Move up (exactly + 3/8th) inside MM Harmonic Trading Frame. Special Notice: Oct. 13th reversal off 45-degree up angle inside square. Special Notice: gap up open: Buy signal

3) Reversal (on lower highs at) MM 5/8th Trading Line: 1,390 - down to 1,328. Stopped down on MMT Line (exactly) 1/8th. Short position winning points (in only two trading days) + 62.5 points profit. Fall (exactly - 4/8th) inside MM Harmonic Trading Frame. Special Notice: October 18th reversal touch-reversed exactly off MM Speed Line. Special Notice: gap down open: Sell Signal

4) Reversal (on lows at) MM Trading Line 1,328 - up to 1,421. Reversed up on MMT Line 1/8th 1,328, exactly. Long: winning points, in only four trading days + 93 points profit. Move up: (exactly + 5/8th) inside MM Harmonic Trading Frame. Special Notice: October 18th reversal signaled off MM Speed Line inside square. Special Notice: gap up open reversal below yesterday’s close: Sell Signal below 1,359 MMTL

5) Reversal (up on highs at) MM Trading Line 1,421 - down to 1,348. Reversed down on MMT Line (exactly) 7/8th. Short: winning points (in only five trading days) + 73 points profit. Move down: - 4. ½ MMT Lines inside MM Harmonic Trading Frame. Special Notice: low price reversal occurred on: MM Momentum Line 45 degree angle. Special Notice: formed “Evening Star” tails off highs: Sell Signal
6) Reversed (up off lows at) ½ MMT Line 1,348 to 1,437.50 Reversed up on ½ MMT Line. Long: winning points (in only four trading days) + 89 points. Move up: + 5/8th MMT Lines inside MM Harmonic Trading Frame. Special Notice: Reversed up exactly off MM Momentum parallel 45 degree angled Trend line

7) Reversed (lower off highs) 1,437.50 Reversed down off 8/8th MMT Line. Move down - ½ of 1/8th. Short: winning points in only one trading day Special Notice: gapped up then went lower 18 Trading days: (on 7 trades) resulted in the following: Winners - money - Profits - confidence - wealth - stability - wealth
1) Short: winning points (in five trading days): + 112.50 points profit
2) Long: winning points (in two trading days) + 47 points profit
3) Short: winning points (in only two trading days) + 62.5 points profit
4) Long: winning points (in only four trading days) + 93 points profit
5) Short: winning points (in only five trading days) + 73 points profit
6) Long: winning points (in only four trading days) + 89 points profit
7) Short: winning points (in only one trading day) + 5 points profit

+ 482 points profit on 7 trades going through one (16) Daily MM Harmonic Trading Frame (to the right through time). This is not luck. It is harder to reverse with a market than to thread a camel through the eye of the camel. What was the eye of the camel really? Certain people really could get through it.

The S&P 500 Futures Market starts over every year at the 1st Frost. The US 10 Year Bonds do the same thing. They reevaluate inflation against raw goods to finished supply. Too many rookie traders and old tired traders need much more help than the support of weekly market support levels to assist them in deciding to continue with a trade “long” or “short.” MM / Gann provides the best answer.
Every successful trader learns from a teacher who has a rule to cover any trade situation. We provide simple, consistent rules wrapped around Gann thinking.

I learned to trade from Maynard Holt from Nashville, Tennessee. He traded in the pits in Chicago and learned from Andrews. Maynard Holt is a Master Level#13 Trader. Very few teachers qualify. You must be an active trader to qualify with at least 5 years of active trading to prove your theories. Why learn from someone who won’t trade their own trading strategy? We spent hours conversing every Friday after market hours. It isn’t possible for us to meet today and talk trading and not share knowledge about how Gann would have traded a certain market. We don’t say what we think, but refer to how he thought.

The Internet messaging system solves lots of time and space learning problems. Every Sunday night I predict for my private E Mail Group, the support and resistance for all the major Indexes, so we are ready to react off logic, math, and experience rather than emotion, tips, and TV. commentator gossip.

Few serious traders today, have the time or patience to learn another trading system, after investing in so many past theories. Our Weekly Private Group is able to read my thoughts about where I expect support and resistance to reverse every market, off math lines inside preset trading square.

It is a better trading class when everyone is thinking the same thing and looking at the same trading 8/8th. Trading should be simple.
Please look at a simple example of how to judge whether a market will reverse lower or continue up higher to its 8/8th MMT Line.
October 31st 2000 is a Tuesday.
October 30th 2000 is a Monday.
October 27th 2000 is a Friday.

The S&P 500 Futures moved up strongly last Friday and closed far enough above our MM 4/8th Line signaling that this market would travel up at least one more 1/8th (to 1,421). 

Please find the small square that encompasses the inter day low opening gap down reversal of this market that reversed minutes after the market opened and moved the Dow 30 stocks up over + 250 points

Today’s October 30th gap down open low was 1,388.50. Immediately it reversed and pulled the cash markets up with it. The S&P 500 Futures reversal drove Dow 30 up + 250 points in one day of trading.

Exert from MM Private Weekly Predictions placed on Private Web Board each (Sunday) night: October 29th for the next week’s Trading Frame. 

Gann said to trade off Weekly Charts and weekly Price change data. Then switch back to inter day to make fast profits off fast reverses.
This is an exact copy of our prediction: week of October 27th, 2000:

Market: S & P 500 FUTURES 
Symbol: SPZ0 Contract: DEC 2000 
Open: 1369.900024 
Close: 1401 
Waist: 1385.450012 
Volume today: 872.629943 
Volume Yesterday: 788.989990 
Reversed on MMTL: 3/8th 1,343.75 
Length of Last Run: Up + 2/8th off - 6/8th fall 
Trading Range 0/8-8/8: 1250-1500 
Trading Frame Days: 16 
Target Price to Sell: up at: 1,406, 1,437, or 1,468 
Target Prices to Buy back: na 
Price to Go Long: better support down at 1,387.50 

Comments: stay long if Monday doesn’t fall more than 1,387.50 support 
Murrey’s Results Last Week (7): The S&P 500 Futures gapped down on the open and reversed exactly at 1,388.50. The cash markets went up + 250 points off this simple reversal off our MMT Line support on our 5/8th line, which we call the Premium Trading Range, where the rookies buy in.

T. Henning Murrey teaches that the futures contract reverses the markets and the cash drives forward on its own power.
T. Henning Murrey and his simple trading system, October 30th, missed the low reversal by only one point at the start of the day. You would have made + $ 4,000 per contract off this sentence, if you reversed with the futures market’s support at 1,387.50. What is hard about trading off MM? Change.

Please look at Figure #1, the attached chart of the S&P 500 Futures for only 18 days Time. Please observe the MM Time Lines, preset off our Harmonic square in Time. You will see that Time is measured along the top of the chart. Why waste Time guessing the frame?
Trading is no more difficult than your mind makes it or your friends confuse your strategy. Do you punish your ego by going against your natural instincts? Is this simple approach too hard to convert to? The Murrey Math Learning Center wants to present simple trading strategy formulas that will stand the test of time. Time has no test. If the Earth tilts back every fall and raw goods freeze, the markets will go up and down in price off supply and demand. The three best months in the stock market are always in the fall of each year. Why?
T. Henning Murrey is the author of The Murrey Math Trading System. For more information on Murrey Math go to www.tradersworld.com/murreymath