W.D. Gann: “Coffee or Cotton” Trading? By D.K. Burton

W.D. Gann traded coffee as well as other commodities. The exchange first started on 7^th March, 1882 with trade No. 7 coffee from 1882 to 1939. The amazing thing is, how little research is done on what we have left in public hands, not counting the 270 charts that are missing. In his book, ‘How to make profits in commodities’- on page 255, using coffee futures, ‘Rio’ traded in New York CSCE from 1901 to 1939, and on page 267- he said it is important to review the movements of the contract MAY COFFEE SANTOS – D.

Its trades from 1928 to 1941 are mentioned in this book. Santos coffee was traded in Santos coffee exchange in Brazil. Santos is a suburb in San Paulo. From what I can see, it traded from 1922 to 1950 and the exchange closed in 1954. However, some say it traded till 1957, but that may have been in New York. It’s now a museum. Current Coffee “C” contract started trading in 1972. It first traded in 1955. Now, you can’t tell if he was researching New York coffee futures or Brazilian by his follow-up letter because the low in October 1936 was traded on the New York exchange:-

MAY COFFEE SANTOS “D”, 19^th March 1954, High 8729:

Using a scale of one point to one degree, 8729 equals 29 degrees Gemini.

8729 / 360 = 24.24 – 24 x 360 = 88.89 or 29 Gemini.

Using a scale of 30 points to one degree, equals 21 degrees Capricorn.

8729/360 = 290.96 = 21 Capricorn.

Using the Jupiter scale of 12 points to one degree, equals 7 degrees 30 Aries.

8729/360 = 24.24 -24 x 360 =88.89 x 12 = 7.41 or 7 degrees Aries 30 minutes.

Using one cent to one degree = 27 degrees Gemini 16 minutes.

8729, 87.29 is 27 degrees, .29 is 29% of 100, .29 of 60 minutes is 17, therefore 27 degrees and 17 minutes.

The dollar value is $28,171.00, which equals 11 degrees Capricorn 45 minutes etc. (see letter enclosed). However, if you move the point in $28,171.00, you have 281.17- the number 281 is 11 degrees Capricorn, 71 is nearly 75% of 60 minutes, therefore you have 45 minutes.

You have to work through the whole letter the same way.

If we apply what Gann has done in his letter to the current coffee market, we get the following research. The low on May coffee was 11^th April 1975 at 45.25 and the high was on 14^th April 1977 at 337.55. In the letter, he uses the low of April 1931 of 4.35 cents. Why does he use that instead of the final low on 1^st October 1936 of 3 cents as the starting point? The answer is, solar return was part of the puzzle from 1882. In the letter, he isn’t using the average of the lows- only the high of 19^th March 1954. Why? Maybe the answer is in the signed secret document that has never been found. It looks like a different system for lows to highs, most likely because markets stay at lows for years where the energy is flat.

COTTON OR COFFEE

Cotton is where he’s written at the top of the enclosed page dated June 9^th with Helio Mars

1 degree 30 minutes Taurus. Can you believe some housewife astrologers are selling a coffee course stating the chart is coffee data?

W.D. Gann had drawn an astrological list of cotton lows using Mars from the low on 9^th June 1932. Everyone thinks this is a coffee chart, it’s not, it’s a cotton chart. If you read Gann’s book ‘How to make profits in Commodities’, you will see the final low on 11^th June 1932. So, it’s a couple of days’ difference, depending on which contract month you are looking at. This is on page 211.

The higher low of cotton is on 10^th December 1938 on the chart on page 214.

The record low in coffee on 10^th October 1936 was at 3 cents; this is more than four years in the future.

If you look at page 267, it has May Coffee – Santos – D Contract. The low was September 1932 and the low in 1938 was in May at 555. The low in cotton on 10^th December 1938 was 726, he added 727 to 2520 + 40 = 3287 as a price resistance in 1951. 7 X 360 = 2520.

When you study the 10 cycles of Mars to 1951, only some of the months are correct. The 4^th, 5^th, 7^th and 10^th cycles are in the correct months from 9^th June 1932, the rest are wrong.

When he wrote the months from 1938 low for cotton, the only month that is correct is the 5^th month from 1938, which is May. The question is, why has he coded this? Could it be he never wanted his staff to find out or is it part of the secret teachings that he explained to students verbally? You just can’t do numbers and dates all your life and have them as mistakes, something else is going on with these Mars returns, only he would know. Maybe some people falsely claim to have discovered Gann’s secrets. However, Gann said, “I won’t reveal or sell my secrets”. Wise people never sell secrets; they always keep them to themselves.