What January highs mean for the next two years
This is not a routine update This work will define positioning for the year ahead. If you know someone who thinks seriously about markets and risk this year feel free to forward this publication.
Markets do not turn because of one indicator, one cycle, or one event. They turn when multiple independent clocks align. What makes 2026 unusual—and actionable—is that three unrelated frameworks converge on the same change-of-trend structure:
Historical Parallelism
Astronomical Geometry (not astrology)
The 56/9 Time Matrix
Each was developed independently. Each points to the same conclusion: an early-year peak followed by a structurally weak year. That convergence is the foundation of this scenario planner.
/
Astronomical Anchoring: Geometry.
This work does not rely on interpretation or symbolism. It relies on geometry. Across four separate stress years, major highs formed at:
· Third-Quarter Moon
· ~294–295° lunar-solar angle
· Mid-January to early-February time window
Those years:
· 1906 – Financial distress follows (Bankers panic 1907)

· 1934 – Panic phase culminates later in the year

· 1966 – Credit squeeze emerges

· 2026 – Candidate high (Jan 12)
No cycles were used to find this. No grids were referenced. The alignment stands on its own.
Historical Parallelism: What These Years Actually Did
We start with 1906 because it “looked similar.” Rather, it was identified independently through the astronomical anchor highlighted above: a Third-Quarter Moon near 295°, which historically aligns with periods of financial stress.
Once that geometric anchor was identified, the year was then cross-checked against the 56/9 matrix to determine where it fell in the broader time sequence.
Only after that sequencing step do other years— 1962 and 2018—emerge as structural analogs, not because they resemble 1906 visually, but because they occupy comparable positions in time, behavior, and market psychology.
In other words, history was not fit to the model; the model surfaced the history.
When we examine 1906, 1962, and 2018, the similarities are structural, not cosmetic:
· Early or echoed January highs
· Weak first halves
· Reaction rallies that fail
· Stress showing after the high
· Lows forming well later in the year
Importantly, none of these years collapsed immediately. They deteriorated.
That distinction matters. We did not see this as being a panic year a major panic year vis a vis 1929.
Historical Parallelism 2018

Historical Parallelism 1962

Historical Parallelism 1906
Astronomy identified the anchor; the 56/9 matrix confirmed the sequence; price behavior validated the parallel.

The 56/9 Matrix: A Separate Clock Reaching the Same Result (grid 56 horizontal 9 vertical.)
This matrix uses a more natural and seasonal calendar year from the beginning of spring to the end of winter, a March-to-March year.
Under that framework:
· The market is still operating inside Sequence 41
· Comparable to 1969 (2025-56=1969)
· Characterized by: optimism peaks first, credit stress follows, market damage lags narrative. This was not used to create the astronomical anchor. It merely confirms it.
Independent method. Same outcome.

The 2026 annual scenario composite
The decennial pattern demonstrated that averaging multiple market years can reveal a dominant behavioural structure, even when the rationale for grouping those years is weak.
We apply a similar averaging technique, but the grouping itself is not arbitrary, based on the years last digit.
Each year in our composite set is selected because it satisfies at least one of two independent conditions:
1. alignment with a specific solar–lunar geometric anchor, or
2. placement within the matrix, the same 56/9 time sequence.
Only after those objective filters are met do we examine price behavior. The composite path is not a forecast.
It is a probability map showing where stress, failure, and opportunity have tended to cluster when markets enter a specific time structure.

How to Read This Composite Chart
The composite chart shown here is deliberately constructed to reflect the dominant, structural trend for the year — not every short-term fluctuation that traders may experience along the way. By design, it emphasizes direction, persistence, and pressure, rather than tactical swings.
What stands out immediately is that once the late-summer peak is in place, the market enters a persistent decline into year-end, with no durable recovery visible at the annual scale. This is not an error or an omission. It reflects a recurring historical condition in which downside pressure overwhelms counter-trend rallies, even though those rallies still occur.
What might help here is reference to the 2018 Dow chart above. The 4th quarter, is not a clean one way trend. In years such as 2018, the market did not bottom neatly once stress became visible. Instead, volatility expanded, and reflex rallies became shorter, sharper, and less reliable. Those reflex moves matter tactically — but they do not alter the larger structure.
The 2026 Annual Scenario PlannerThe 2026 Annual Scenario Planner Matters for Risk (and Not Just Direction)
The real risk in 2026 is not “being bearish.” It is being short volatility when volatility is underpriced.
This is a year where: trend systems will struggle, buy-and-hold assumptions will be tested, timing and regime awareness matter more than conviction.
That is why the Technical Event Model (Volatility modeling) matters here—and why missing bottoms becomes less likely than in past cycles. The Technical Event#6, Published in Volatility Reports.
Vision to the end of the decade 2026-2030
Markets that peak in January have a habit of refusing to stay confined to markets. History shows that January highs often mark not just financial inflection points, but the beginning of longer, more consequential sequences—events that unfold over one to two years and reshape the global landscape. The bursting of the technology bubble, the Arab oil embargo, and the assassination of President Kennedy were all preceded by January market peaks that, at the time, appeared technical, isolated, and easy to dismiss. They weren’t. They were early warnings.
What follows these peaks is rarely obvious in real time. The risks begin on the back pages—political fractures, financial stress points, geopolitical miscalculations—largely ignored while markets are still elevated. Then, gradually, those same risks migrate to the front pages.
Throughout 2025, Contrary Thinker argued that this process is already underway again. It all began in 2018 with the January peak . And throughout 2025 one of our primary themes was the geopolitical tensions on the back pages migrating to the front pages until they couldn't help but be noticed by the markets we're still not quite there yet
However, a January 2026 peak would be a starting gun, setting in motion developments that extend well beyond a single calendar year. That second act—and its implications—is not something we’re ready to fully reveal yet. But history suggests that those who recognize January peaks for what they are tend to be positioned very differently when the real story finally breaks.
Contrary Thinker insuring your future in the global equity markets.
Great and many thanks,
Jack F. Cahn, CMT+
MarketMap™ 2026 Scenario Planner
Contrary Thinker™ since 1989
Copyright 1989-2026
All-inclusive analytical method: Astrological and Historical Cycles, Advanced Technical Analysis, Traditional EWT, Volatility modeling, Contrarian sentiment modeling. All empirically tested with technical methods hard coded and tested for validity.
Contrary Thinker
1775 E Palm Canyon Drive, Suite 110- box 176
Palm Springs, CA 92264 USA
760-459-4681
OR
25/1 Poinsettia Court
Mooloolaba, QLD Australia 4557
614-2811-9889
-- Contrary Thinker does not assume the risk of its client's trading futures and offers no warranties expressed or implied. The opinions expressed here are my own and grounded in sources I believe to be reliable but not guaranteed.
-- Client subscribers are responsible for keeping their payment details up to date and cancellations via the payment gate.
-- Pricing is subject to change without notice. My indicators and strategies can be withdrawn for private use without notice at any time. Digital products are not returnable or refundable.
-- Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate for your financial situation. Use only risk capital when trading futures or options.