The Seeds of the Foundation

Before we were the Foundation for the Study of Cycles, there was a “committee.” The Foundation is the outgrowth of the permanent committee set up at the First International Conference on Biological Cycles, held at Matamek, Canada, in 1931

Circa 1941

Seventy years ago, a young economist from Harvard, along with some of the world’s top scientists, set out to unravel a mystery.

Young Harvard economist, Edward R. Dewey, was Chief Economist for President Herbert Hoover at the beginning of the great depression. President Hoover assigned to him the task of determining the causes of the depression.

In January 1941, the Foundation for the Study of Cycles was incorporated Connecticut, dedicated to discovering the mystery behind cycles. Since then, the Foundation has been working to shed light on this mystery.

The Depression… but not the only one

Dewey discovered this wasn’t the first time the U.S. economy suffered a depression. In fact, it had done so with some regularity.

After seeking out the opinions of economists, he realized the only answer they could give him were conflicting opinions with very little insight. Repeatedly, Dewey was led to the door of cycles.

Cycles synchrony

While conducting some research at the Stamford library, Dewey encountered a report on biological cycles. As he read the report, he realized that the cycles biologists had identified in nature, were in fact, identical in both length and timing to those he had described in business and stocks. The implications of this discovery were to change his life, along with the lives of many others who would follow him.

Foundation’s mission: Finding CAUSE

Edward R. Dewey wasn’t so interested in using cycles to predict the stock so much as he was fixated on the higher goal of discovering the cause of cycles, which he suggested was a force “Out There.”

Foundation membership

Over the years, the Foundation developed a strong readership subscribing to their monthly Cycles magazine for $12.50 per year. The Foundation’s membership was dutifully attended to by Mrs. Gertrude Roessle, membership manager, who played a strong role in the Foundation for more years than even Dewey had.

Public “reaction” to cycles

Dewey noticed a peculiar reaction from people when he discussed cycles with them… a reaction that seemed to combine amusement, skepticism, and a certain suppressed fascination. As Dewey put it, “Cycles get people. Pro or con, the idea engages strong emotions. One of our greatest problems is to keep people’s thinking about our work on a level-headed plane.”

First formal cycle studies

Cycles were formally studied scientifically prior to Dewey’s arrival, but only dates back to the nineteenth century. In 1847, Dr Hyde Clarke of England, published a paper attempting to correlate economic events with astronomical data—very much what we have accomplished with Zarathustra. In 1862, Clement Juglar reported on a nine-year economic rhythm that he recognized in Western Europe and the United States. This became known as the Juglar cycle. And, in 1892, Eduard Bruckner suggested there was a 35-year weather cycle operating in Europe, which many meteorologists claim is still operating. In the mid-20s, N.D. Kondratieff documented a 56-year cycles in wholesale prices later to be called the “Kondratieff Wave.”

By the time the Foundation was established, efforts to understand all types of cycles were stepped up in the U.S. as people attempted to explain the depression.

Cycles, cycles everywhere

Since the time of its founding, the Foundation has documented almost 5,000 cycles ranging from earthquakes and sunspots, to barometric pressure and temperatures, to lynx populations in Canada.

One of the most popular theories regarding economic cycles at this time was correlating peaks and valleys of the 11.15-year sunspot cycle with the tops and bottoms of common stock prices. However, evidence was scant and Dewey said, “I don’t believe that sunspots as such have any effect on the stock market.”

A healthy compromise

Dewey admitted that “The activities of the Foundation are a compromise between the desires of most of our members… and our own desires.” He ran a survey at that time to find out which element of cycles research most interested the Foundation’s readership. It turned out to by 874 of the 1,108 (79%) that responded were primarily interested in stock market and other business and finance cycles. No surprise that a recent survey we conducted in 2010 indicated the same. Little has changed it would seem.

So, while we are a research organization interested in all the ways cycles impact our world, and with our primary purpose being to discern and make predictions from the underlying cause of cycles – much of our research centers around stock markets. This is due to two reasons: 1) Our membership is primarily interested in market cycles; and 2) Of all data, financial data is in the greatest abundance.

Dewey coins a new term

Just as in Dewey’s time, we have a certain number of cycles enthusiasts that become what might be called “cranks.” These “true believers” become fanatical about cycles, losing all perspective. Dewey coined the term “cyclomaniac” to describe these obsessive individuals. The term also covered another group that didn’t lose perspective, but did devote every waking hour to the study of cycles. Dewey included himself in the latter group. To keep his perspective, he always hedged his claims about cycles as he suggested that “Cycle knowledge is only partial knowledge.”

A book is published


In 1944, Dewey collaborated with E.F. Dakin on a book titled, Cycles, the Science of Prediction. In this, they focused on four key economic cycles: Kondratieff's 50-60 year cycle; Juglar's 9 year cycles; an 18 and 1/3 year cycle mostly applying to real estate activity; and a 3 and 1/2 year stock price and business activity cycle. It became a best-seller. The most accurate cycles, however, were found to be ones in specific industrial segments, rather than broader ones.


Sunspot speculation


One of the more stubbornly popular economic cycle theories at the time involved sunspots. However, in 1959, after much research, Dewey declared, “I don’t believe that sunspots as such have any effect on the stock market.”


Some notable board members during this period


Copley Amory, Chairman of the Board

Charles Greely Abbot, Smithsonian Institute

Harold Elmer Anthony, American Museum of Natural History

George Baekeland, The Bakelite Corporation

Honorable Charles G. Dunes, Chairman of the Board, City National Bank and Trust Company of Chicago

Honorable W. Cameron Forbes, Board of Trustees, Carnegie Institute
   and Life Member of the Corporation, Massachusetts Institute of Technology

Daniel Trembly McDougal, Former Director, Dept. of Botanical Research, Carnegie Institute

Harlow Shapley, Director of the Observatory, Harvard University

Julian Sorrell Huxley, Director General of the United Nations, Educational, Scientific and Cultural      Organizations

Wesley Clair Mitchell, Founder of the National Bureau of Economic Research (NBER)


A “Letter from the Director”


To finish off this brief history of the 40s and 50s at the Foundation, here is a portion of the “Letter from the Director” written by Dewey in the inaugural issue of Cycles magazine in 1950:




In Notes for an Autobiography, Albert Einstein, speaking of wonder, said "…. as a child of four or five years….my father showed me a compass. That the needle behaved in such a determined way did not at all fit into the nature of events which could find a place in the world of cause and effect connected with direct ‘touch.’”


"This experience made a deep and lasting impression upon me. Something deeply hidden had to be behind things."


Something of Einstein's wonder and curiosity came over me, when as a boy, I first saw iron filings on a sheet of paper conform to the 'lines of force' of a magnet held underneath.


It is this same "determined way" in which many phenomena fluctuate with rhythm that tells us that "something deeply hidden has to be behind things." It increases our wonder when we see a number of phenomena all fluctuating with the same wave-length, and with turning points coming at or about the same time. These behaviors arouse our curiosity in regard to what are the deeply hidden "somethings" involved. It is this curiosity that drives forward the student of cycles, – this curiosity and a compulsion that makes it impossible for him to put down his task until he has solved at least a part of the riddle.



Dear Member,

I am very pleased to present this second part of our Foundation history overview – this time covering the years 1960 through 2000.

To put this portion of our series together, we dug into our archives and various Web sites to bring you some “scrapbook” memories.

There is so much history behind the Foundation that if we gave any more than a cursory overview for each decade, this e-mail would be likely be 100 pages long – which obviously wouldn’t work for most of our members.

So, our apologies if we fail to mention some our amazing past board members, many of whom are legends in their fields. We’ve undoubtedly left out many important names, but will hopefully include mention of them in future articles.

Without further adieu, I present to you, part 2 of our Foundation history:

The 1960s

Our Directors in September 1964

One of our most influential leaders and financial backers was the legendary W. Clement Stone.

"You affect your subconscious mind by verbal repetition."
- W. Clement Stone
Businessman, author and philanthropist
Chairman of the Board for the Foundation for the Study of Cycles for 26 years.

Stone was the first major success story born from the research and teachings of Napoleon Hill, legendary author of the world’s all-time best-selling success book titled Think and Grow Rich.

Here’s a snippet from a 50th Anniversary letter:

In 1960, W. Clement Stone took the helm and guided the Foundation for 26 years. He wasinstrumental in establishing its endowment, supporting its research and publishing, and making it what it is today. Without Stone's support, direction, and financial support, there would probably be no Foundation today.

W. Clement Stone
President and Chairman of the Board
Served from 1960-1986

W. Clement Stone was not only an important part of our Foundation, but also of the history of the entire “positive mental attitude” movement.

From Wikipedia:

Stone ran $100 into millions with a strong desire to succeed and by putting into practice the principles in the book Think and Grow Rich by Napoleon Hill.[1][3][4] He was the living example of the proverbial rags-to-riches protagonist in Horatio Alger's stories he loved so much. Eventually he became an 'angel' to others lifting some from the gutter, to incredible heights.

A quote from a New York Times article “Clement Stone Dies at 100; Built Empire on Optimism”:

Mr. Stone lived his life as a prime exponent of his own version of Norman Vincent Peale's ''Power of Positive Thinking'' and Napoleon Hill's ''Think and Grow Rich.'' He emphasized using a ''positive mental attitude'' to make money, both for himself and for the millions of people who became his disciples through the self-help books and magazines he wrote, edited and published.

Some of Stone’s inspirational quotes:

“I feel healthy! I feel happy! I feel terrific!”

“Be careful the environment you choose for it will shape you; be careful the friends you choose for you will become like them.”

Aim for the moon. If you miss, you may hit a star.”

“All I want to do is change the world!”

“Be generous! Give to those whom you love; give to those who love you; give to the fortunate; give to the unfortunate; yes — give especially to those to whom you don’t want to give.”

Additional quotes from W. Stone on the subject of “generosity”, an attitude that Stone considered essential for success, can be found here.

Below is a snippet from Stone’s book that he co-authored with Napoleon Hill titled, Success Through a Positive Attitude; discussing cycles, Edward R. Dewey and the Foundation.
























Synchronistic Correlation with Our More Recent Software Developments:

In the 2000s we introduced Techsignal Intraday. This period matched up with the Foundation in the 1960s when Stone was Chairman. During his tenure, Stone began getting more traders involved with and interested in the Foundation’s work. He also donated over $1 million to the foundation to help further our research.

Also in the 1960s, The New Yorker magazine published a fascinating article about Edward R. Dewey titled “Something Out There,” by John Brookes, 1962.

The New Yorker magazine; “Something Out There,” by John Brookes, 1962

The 1970s

Our Directors, February 1970 included…

Also strongly associated with Dewey, the Foundation and W. Clement Stone, was the famous author, Og Mandino—author of “The Greatest Salesmen in the World” among many other best-selling “Positive Mental Attitude” titles:

W. Clement Stone mentored Mandino:

“One of his great successes was the famed Og Mandino, an alcoholic at the time whom Stone took under his wing. The relationship engendered a new life for Mandino who became the publisher of Success Magazine at the time.”

Here’s a letter Dewey wrote to members about Mandino’s book on cycles:

In cycle synchrony with this period, came the introduction of Techsignal Enterprise.

This version of Techsignal matched what was happening in the 1970s when Paul Tudor Jones got involved with the Foundation.

With Enterprise, we began deriving buy/sell signals for individual assets using technical indicators at close of market day and by cycle turns.

We also learned in the 70s that it’s not a good idea to trade a composite cycle draft. These composites are for projections only, not predictions.

R.I.P. Edward R. Dewey

The 1970s also saw the passing of our esteemed founder, Edward R. Dewey, whose work undoubtedly lives on.

The 1980s

The 80s saw the passing of the torch from W. Clement Stone to a new Executive Director, Clarence “Bud” Coleman, son of W.C. Coleman, founder of The Coleman Company, Inc, best known for being the world renowned manufacturer of camping gear.

Also during the 80s, billionaire hedge fund titan, Paul Tudor Jones, began working with the Foundation more closely. You can read a more complete profile for Jones here.

Tudor’s firm now manages over $19 billion in assets and Tudor’s 2010 net worth was reported to be over $3.2 billion.

Tudor generously provided a great deal of funding to help further the Foundation’s research .

Jones is said to have predicted Black Friday in 1987 when he tripled his money on short positions.

His crash prediction, along with his mention of “cycles”, was mentioned in the movie “Trader” – of which he bought up all available copies… some say to protect some of his trading secrets that may have unintentionally been revealed during the film.

The film “Trader” is a fascinating PBS documentary that many of the Foundation members who are traders may find quite interesting.

To quote a blog post about the movie ‘Trader’:

This is hedge fund manager & legend Paul Tudor Jones in his element. He is notorious for predicting and profiting from the stock market crash in 1987. The video takes you inside Tudor Investment Corp back when they were only 22 employees large and managing around $130 million. Today, obviously, they are much, much bigger.

If interesting, we found the film online* at

    *You can enlarge the “Trader” video to full screen by clicking the “rectangle with the arrows in the corners.”

In the mid-80s, another colorful character and high-powered investor named Martin “Marty” Armstrong became president of the Foundation and made quite a splash in world news.

Unquestionably one of the brightest cycle analysts the Foundation has seen is also one not one lacking in controversy.

Some have called him the original “Bernie Madoff” – although we will probably never know if allegations against him were true or not in light of what may have been a highly “coerced” guilty plea.

As one person told the story, the United States CIA (Central Intelligence Agency) phoned Armstrong at the Foundation asking him to come down to their offices and explain how he was able to predict the market so accurately. His response to them was somewhere along the lines of “Fu*k off!” … just before reportedly slamming the phone down on the agent. If this story is true, this was probably not the wisest response.

Subsequently an investigation was launched and he was jailed for 7 years for contempt … perhaps the longest time anyone was ever held for such a charge. So, perhaps it wasn’t really about his financial dealings. His daughter doesn’t think so:

According to Armstrong's daughter Victoria Armstrong, "It took nearly 30 years for my dad to develop this model and his refusing to turn over its source code to the government is a big reason why he has been held in jail for over 7 years without a trial. His model was his life’s work and his passion that ultimately landed him in jail. Although it's great to hear people that have benefited from his insight, after seeing what has happened to him I wish he kept it to himself."

Marty is still in jail at Ft. Dix, a low-security facility, where he’s still writing newsletters from jail on an old typewriter.

In 1990 The New Yorker wrote an article about him titled The Secret Cycle: Is the financier Martin Armstrong a con man, a crank, or a genius? You can access that article at The New Yorker or on Scribd.

Incidentally, Marty doesn’t think we’re about to see a recovery anytime soon (and neither do we)…

The above snippet is from Armstrong’s Jan. 5, 2011 newsletter.

An unofficial website sharing various Armstrong newsletters begins with:

Martin Armstrong, America's #1 Political Prisoner, author of the Economic Confidence Model based on an 8.6 year business cycle theory inspired by the work of Nikolai Kondratieff.

Martin Armstrong is currently in prison. Indicted in 1999 on charges of defrauding Japanese investors. He was in jail for seven years for contempt of court before pleading guilty in 2007 to the fraud charge for which he received an additional five year prison term. Armstrong claims his legal problems started when he failed to play ball with "The Club". His imprisonment is one of the longest under a contempt of court order without a trial. Coincidentally, prior to his guilty plea, his final appeal for release (relating to indefinate [sic] imprisonment for contempt of court) was denied by (recently promoted) U.S. Supreme Court Justice Sonia Sotomayor.

You can learn more about Marty and read some of his newsletters at this site:

Coinciding with this period, we introduced Enterprise Intraday, which coincided with Tudor’s focus on  intraday trading.

The 1990s

Our director during this period was Peter F. Borish, legendary hedge fund manager and right hand man to Paul Tudor Jones. He was also interviewed in “Trader.”

Borish introduced various trading strategies to the Foundation that coincide with the introduction of additional technical indicators into Techsignal.

He was a founding partner, vice president and Director of Research for the Tudor Investment Corporation.

He began his career began at the New York Federal Reserve Bank where he monitored Forex futures and options.



A brief background:

To keep with your decade correlation, after Enterprise Intraday, we developed the Techsignal Elite platform. This version was the first to generate signals based on both technicals and Quant (quantitative analysis) and matched with Peter Borish’s tenure in the 1990s. The FSC received a 6-figure grant from Borish in exchange for faxing him cycles signals every day.

Following Elite, we introduced the last in the Techsignal line – Techsignal Ultimate. This version was released after we brought the foundation back from hiatus in the late 90s, early 2000s. This version included the ability to automatically scan entire portfolios. In 2000 we finally had ability to scan full portfolios of stocks due to the increased computing power of Pentium chips. By this time we could scan an entire stock portfolio in the time it would take to scan a single stock in the 1990s.

To Wrap it Up…

There’s much more to our history that has occurred in this 40-year span, obviously, but we’ll bring this section of our historical overview to a close now. We apologize if it seems a bit “rag tag” but, again, we’re doing the best we can with the time available.

Just as we did with Part 1 of this series, we will be honoring our history from 1960 through the 1990s with several deep discounts off our already low 70th Anniversary special prices. These discounts will be available only until the next installment of our history (Part 3) is released, which will be in the next day or two. So, if any of these specials sound good to you, best hop on them fast, as they will be ending momentarily. With our sending of this email, any discounts offer in Part 1 have now expired.

I hope you’ve enjoyed this stroll down memory lane.

If you have any questions about the Foundation, or any comments regarding this historical series, please feel free to write me at

I’m also happy to answer any questions you may have on any of our products or services, and donations are always GREATLY appreciated and are what allow us to continue our research.


David M. Perales
President / Chairman of the Board
Foundation for the Study of Cycles

P.S. (Yes, there must always be a P.S.!) We did our best to pull this history together rather quickly given our busy schedules here. If you find anything doesn’t quite seem 100% accurate, let us know so we can publish a correction…

P.P.S. With so many legendary figures standing behind the Foundation and its research, it is clear that each of these powerful men recognized – and greatly profited from – the Foundation’s research. And yet, each of these great men came before we finally “cracked the code” on cycles with Zarathustra when we had to rely on only the “shadow” cycles received here on earth. How much greater then will the future Foundation “giants,” “titans” and “legends” be when they base their work upon the actual cause of cycles? A whole new adventure is about to begin, and the next 70 years look to be even more exciting than the first 70! 

History of Foundation for the Study of Cycles
Part 3: 1999 - Present

Dear Member,

I hope you've enjoyed parts one and two of our three-part historical series in celebration of our 70th Anniversary.

We begin this last part of our series in the year 1999, as an event in this year was a significant lead-in the decades to follow.


The CIA and Marty Armstrong

In Sept. 1999, Martin "Marty" Armstrong, the former director of the Foundation at that time, was arrested under "suspicion of securities fraud."

However, this wasn't a simple cut and dry case. In fact, many doubts still remain as to the motivation behind these events.

In 1999, as the story was relayed to me... the CIA called Marty and asked him how he was able to predict the top of the market with such accuracy. I suspect either they felt he was conducting some kind of insider trading or that they knew he had a system for accurately predicting markets and wanted it for themselves. They asked him to come down to their office and show it to them. Or, as Marty's daughter would later put it, "to obtain the source code for his 30 years of research."

Essentially, they asked him to reveal his "secret formula" behind his market predictions. And, if you know anything about the CIA, you know you don't mess with those boys. So, when Marty supposedly told these guys to go "f-themselves" and slammed the phone down on them, that obviously wasn't going to end well for him or the Foundation.

Soon, the CIA subpoenaed Marty and all the current board members. Marty refused to give the judge the evidence he demanded and so was slapped with a contempt of court order.

Perhaps I'm wrong, but my understanding is that under Constitutional law -- if that still applies in the United States -- a contempt charge can only get one a maximum of 18 months in jail. But this judge, unilaterally decided to keep Marty in jail for 7 years… on contempt charges, if you can believe that. This, without any conviction or guilty plea. So, this sentence alone should give some idea as to how out of the ordinary this case was.

Marty's story was covered more in in Part 2 of our Foundation history. We hope you won't think less of the Foundation if you were previously unaware of this part of the Foundation's history. But, as it's an essential part of our history, it needed to be mentioned in this historical overview.

To many higher-ups in government, along with those banking institutions that wield an unhealthy influence over them, accurately predicting the stock market by us "lay people" isn't taken lightly. Thus, I am personally not at all surprised with the government's reaction to Marty's accurately predicting the market, nor his refusing to disclose his cycles trading system which they no doubt would not have minded getting their hands on, and which he developed with the help of the Foundation's research.

FSC materials go places

Prior to the time Marty was arrested, all the FSC materials,  including our entire library, had already been moved from Wayne, PA where Richard Mogey's office was, to Marty's office in Princeton, NJ. Upon his arrest, they were put under lock and key by the Fed.

After the Feds finished going through the materials, Ned Dewey Jr. persuaded the judge to give the Foundation one day to retrieve them. Access was granted, and Richard Mogey and two others went down to Princeton and removed all the files they felt were important. Those records were then transferred to the MTA (Market Technicians Association) as part of a custodial agreement. Dick Fox arranged the transfer, I am told, and the MTA took care of the materials for the next few years.

The MTA, set up in the 70s by Shelley Lebeck, was working to make technical analysis into an acceptable discipline. Contemporary thinking at that time thought that markets were purely random but the MTA insisted the market was predictable to a point using technical analysis.

A favorable chain of events keeps FSC "alive" and its materials "intact"

Around this time, there was a battle of sorts within the Foundation where about half the Foundation board sided with Ned Dewey Jr. (the "white hats", as he recounted to me) and the "black hats" who sided with Armstrong. The case was dismissed with no resolution. Later, after Marty's incarceration, the remaining board voted in favor of dissolving the Foundation.

However, for some reason and very fortunately, the proper forms were never filed with the state. In 2000, the State of Connecticut changed the law about non-profits, and the Foundation simply went into "inactive" status. Yet, prior to this change of law, even without filing such a form, FSC would have been officially dissolved automatically by the state after a certain period of time. The new law expressed the opinion that non-profits were akin to living beings... and that it would be like euthanasia for the state to dissolve them. So, the FSC and its charter were spared and simply went into inactive status until it could later be revived.

So, years later when I inquired with the state regarding the status of the Foundation and was told by one of their agents that if I wanted to bring the Foundation back, I could, and that I simply needed to follow a few specific legal steps.

I did so, and the Foundation was once again deemed active and in good standing by the State of Connecticut, and following my subsequent phone call to the IRS, our non-profit tax status was also restored!

Saved from World Trade Center demolition

In yet another favorable turn of events, FSC's precious research and other files were spared when the MTA moved their offices into one of the WTC buildings that collapsed -- but they didn't have enough space to store the files in the towers, and so they had a space above a print shop in Woodbridge, NJ and kept the files there.

There were, however, additional backup computer tapes with Foundation materials on it that were stored in the WTC that Shelley Lebeck ended up saving from the WTC before it collapsed.

He was in the WTC at the time it was attacked, grabbed several of the MTA data tapes, and got out before the building was demolished.

An article from that time shows the MTA, like the Foundation, went through their own "Phoenix" event, and subsequently their own rebirth from the ashes of the WTC:

The "new" Market Technicians Association MTA is literally rising out of the ashes and will be more electronic than ever before after its offices and all of its library resources were destroyed in the Sept. 11 terrorist attack in New York.

MTA custodianship ends

Upon the reinstatement of the Foundation's legal status, the MTA was asked to return FSC's materials. They delivered the files, but not our library of books. Supposedly these were donated to the New York Public Library.  These books are extremely valuable and are the property of FSC, and should never have been given away. The Foundation may, at some point, seek to reobtain those as our rightful property.

The files, which were with MTA in New Jersey were retrieved by myself and two others and we brought them down to Albuquerque, NM where they are now safely archived. These materials are a national treasure and are under the protection of FSC once again.

While going through these files, I discovered a cache of microfilm records created by Dewey in 1970. I purchased a reader and discovered that these were the real library. This was the digitization of the Foundation's library that Dewey did himself!

Articles, papers, documents, letters to and from members of the Foundation, and much more were in that collection. It was like the Foundation's Library of Alexandria. The information in that microfilm collection is priceless. And that's what is now on the massive 18 gigabyte Blu-ray data disc we've just begun making available to our members.

Project Firebird: Phases 1-3 are completed!

After I brought back the Foundation from inactivate status on May 2, 2005, I set out a number of goals for the Foundation's rebirth and named this "Project Firebird." Those Phase 1 goals were to be achieved between 2003 and 2011.

Some of those goals included digitizing a large part of our files. The completion of this task is credited to the hard work of Jennifer Moran, our Executive Director, who completed that project, including indexing this information to make it searchable. Soon, it will be re-scanned and re-indexed to make the searching of this massive database faster. Even with the fastest indexing that Adobe software provides, it still takes a long time to search through 18 GB of data.

This digitization of the Foundation's records included Cycles magazine, Cycles Projections from 1993, our first 50 years of history, Cycle Synchronies, Cycles class library (4 volume set digitized) and the 800-page collected writings of Dewey.

Upon completing these phases, we're now prepared to move into phase 4, which is our own building and the establishment of our investment fund -- right on schedule!


Jealous rivalries

When the Foundation was revived, some former members -- apparently out of jealousy -- were upset that I had done what they had not been able to do -- actually reviving the Foundation. They assumed it was dead--killed off by the state of CT years ago. Fortunately, it was merely dormant. And so, there are apparently some "sour grapes" to this day. Their comments are all over the Web, and I do not have the time or inclination to respond to these distractions. It would appear those gentlemen were not meant to be the ones who would care for the Foundation's best interests.

After assuming the Foundation was dissolved, those former members founded their own cycles organization. They attempted to pass it off as the legitimate heir to the Foundation, and I believe may still be attempting to do so. However, there could be no heir, of course, as the Foundation is still, and always has been, alive and well as the Foundation for the Study of Cycles. It never went anywhere, even in the eyes of the state. It merely took a brief sabbatical.

This is all part of the Foundation's own cycle. And perhaps the Foundation will take another short rest in 70 years or so, just prior to another rebirth. Perhaps some of our younger members will be around to see that day.

With the Foundation retaining its initial charter, all copyrights prior to this "reactivation" period are still owned by the Foundation.

I personally feel that all this, just like cycles, has been preordained... because everything has fallen into place perfectly with miraculous timings, events and synchronicities. Being a student of cycles, I do believe in coincidences, but not in the commonly accepted meaning of the word. The definition of the word coincidence is simply: "the condition or fact of coinciding." Again, nothing mysterious. Just harmonious cycles in action guiding our destiny.

Along these lines I liken our "free will" within these cycles to "a dog chained to a tree." We each have all the free will we wish to exercise... within the length of our "chain." But that's as far as it goes. Some of us seem to have a longer chain than others. The cycles themselves determine our degree of freedom.

Techsignal is born

Richard Mogey came back into the Foundation as our Chief Voluntary Officer and donated Techsignal Software to the Foundation, as he stated to members during several of our live meetings. In fact, the software is actually based on the Foundation's own proprietary code first written in Fortran at the University of Pittsburgh in 1954 by Dr, James Vaux. Richard's work in Visual Basic was essentially "window-dressing", and in fact, took many shortcuts, which have led us to a re-evaluation of the efficiency of the present model. which in my estimation, falls far short of the original work done by Edward Dewey PRIOR to the time of high-speed computing. This shortfall is being addressed this year in the re-coding into the new Z-Signal Platform.

Techsignal Standard coding was completed, but it didn't have a name. Mr. Mogey wanted to call it SPR (Systematic Periodic Reconnaissance), which is what Dewey named his system; but Dewey was also a PhD genius in terms of cycles analysis, and yet had little in the way of marketing experience. "Systematic Periodic Reconnaissance" might be a great name for a NASA or DOD software, but it wasn't going to make it easy for us to sell it to members, so we needed a simpler name. Years earlier I had secured the domain name and when coding was completed, I suggested the name to Mr. Mogey, and we agreed that's what it would be called.

Techsignal was released in 2004 as Techsignal Standard. You can actually see the first Techsignal site online in the Web Archive here:

Richard then conceived of Techsignal Professional. Subsequent versions were conceived by both myself and Richard together, up to and including Elite and Ultimate, which I designed, and Richard coded.

The addition of technical indicators to Techsignal

Legendary hedge fund manager, Paul Tudor Jones, provided funding to conduct further research into finding profitable trade signals. That was when we learned we should not trade off composites and only trade single cycles. It was also during this period that we learned about and incorporated additional tools into Techsignal that had been "necessary and sufficient" to validate the cycles using technical indicators and to raise the percentage of trade winners from 60% to 70%-80% or greater. Techsignal Intraday was birthed shortly thereafter.

Our first automated trading platform

Later, Richard actually had a dream about a new system that would become Techsignal Enterprise. Enterprise would automate the buy/sell signals into a comprehensive trading platform. The new computing power at that time would make this possible.

It took us through 2006 to complete the coding for Techsignal Enterprise and get it running. Techsignal Enterprise took "forever" to program, as is often the case with programmers, it takes much longer to program and test than is initially estimated.

After Enterprise, I conceived of a new software. I asked Mr. Mogey if we could refine Enterprise further and we added Quant (quantitative analysis) and that became Elite. Lastly, Techsignal Ultimate, which scanned entire portfolios (again, thanks to increased computing power) was developed, and this finished off the Techsignal software line.

Weiss Research and The Foundation Alliance

While on sabbatical in 2009 -- which I do every few years to regroup and refine (and sometimes completely redefine) the vision I have for my life, as well as for the Foundation -- I was going through e-mails and received an e-mail from Larry Edelson of Weiss Research. I called him in Thailand at 2 a.m. my time, and he explained who he was and we had a nice conversation. I was familiar with Weiss Research as I had actually used some of their material in the 70s when I was doing my own market research in terms of planetary influences. I told Larry I was needing to do some fundraising for the Foundation and said we needed around $750,000. He told me he could get us millions.

Later, I showed the Foundation's research to Monte Agarwal, the editor of Weiss Research's Million-Dollar Rapid Growth Portfolio  and he said, "That's the Holy Grail!" I couldn't have agreed more. And so after another presentation to members of Weiss Research, an alliance was born between us and Weiss named The Foundation Alliance.

Upon launching this Alliance, I was told that Weiss Research had brought in more subscribers than they had ever seen -- with what I was told were over $9 million dollars in sales. They paid a very small percentage of that -- just $350,000 -- to the Foundation, and have not paid FSC any commissions since. More about that later.

Weiss wanted someone to represent the Foundation's part in the Alliance, so we allowed Richard Mogey to be the Foundation's ambassador and spokesperson for the Alliance at the time, prior to his dismissal from our staff in 2010.

While Mogey indeed become the "face" of the Foundation for this Alliance, he was never the representative of the Foundation as a whole. It was to be the "Foundation Alliance" - not the "Mogey Alliance". However, Weiss Research did such a great publicity job presenting him to their "guru-driven" public so that, even to this day, many of our own members believed he was the actual head of the Foundation, which hasn't ever been the case as he was only our Executive Director from 1986 to 1996 prior to FSC going inactive in Connecticut, until our resurrection in the early 2000's when David Perales assumed the triple roles of Chairman, President, and Executive Director. In 2010, Jennifer Moran Edens was made Executive Director.


Zarathustra - Tying up the knots

Edward R. Dewey knew this work was far from completed, but that he laid a great foundation for this to happen. Dewey's son is quoted in Samuel Shreiner's book Cycles (1990) that his father "...visualized himself as the man before Copernicus; that is, after he had finished all the work he could do, the next man would come along in twenty or so years and tie up all the knots."

On October 14, 2010, the biggest knot got tied when I clearly saw the relationship between planetary output and what Techsignal was seeing in terms of cycles. This was done with the help of our new Apple IMac computer and its I-7 processor. We proved that these planetary signals were, in fact, the undeniable cause of cycles. These signals were indeed the "something out there" that Dewey had long suspected during his time at the Foundation but could never prove. In fact, it would have been impossible to have done so without today's computing power. Had Dewey had such a computer, he likely would have figured it out... as was his innate brilliance.

Zarathustra was named after the founder of Zoroastrianism, who was regarded as a "holy man" and "saint" by many of his devotees.  He is considered to be the "Father of Astrology" who gave the world an understanding of how the celestial realms affect us intimately here on earth. It is claimed that his mystery school trained the Magi in astrology. These were the "three kings of Orient" that brought Jesus the gold, frankincense and myrrh and followed the "star" to his birth location.

The Magi are popularly referred to as wise men and kings. The word magi is the plural of Latin magus, borrowed from Greek μάγος magos,[7] itself from Old Persian maguŝ from the Avestan magâunô, i.e. the religious caste into which Zoroaster was born, (see Yasna 33.7:' ýâ sruyê parê magâunô ' = ' so I can be heard beyond Magi '). The term refers to the priestly caste of Zoroastrianism.[8] As part of their religion, these priests paid particular attention to the stars, and gained an international reputation for astrology, which was at that time highly regarded as a science. Their religious practices and use of astrology caused derivatives of the term Magi to be applied to the occult in general and led to the English term magic. Translated in the King James Version as wise men, the same translation is applied to the wise men led by Daniel of earlier Hebrew Scriptures (Daniel 2:48).

Wikipedia: "Biblical Magi"

The Future of Zarathustra

Our Zarathustra project, which we often call "Z" for short, is very much like a living being. While I may be its "parent", it still has a life of its own. In this way, Z is still an infant that needs to be cared for properly. Someday, however, Z will undoubtedly grow to be a powerful oracle that will support, protect and nourish the world in countless ways.

Initially, Z is being used to provide trading analyses. This is because over 80% of our members want this, and because there is more financial market data to work with than any other kind of data. Still, the Zarathustra methodology will eventually be used to predict perhaps millions of cycles as the Foundation's research progresses, as computing power increases, and as we begin providing Zarathustra to academic institutions to conduct their own research. All of this will make Zarathustra the harbinger of a powerful new branch of interdisciplinary science that Dewey envisioned will ultimately benefit billions of future souls.

And, so, that's where we're at to date.

And now... this is where we are heading…

Our Vision

Part of our vision for the Foundation's future is so bold and so exciting that it might be considered "unbelievable" to some.

This is similar to how Foundation members were, for years, forbidden from ever mentioning "possible planetary causes of cycles" to its members, as there was too much public skepticism about such influences. It fell within the realm of "pseudo-science" even though science, such as that conducted by RCA, confirms the planets effects here on earth. The Foundation's rule to not speak of planetary influences was prior to Zarathustra providing proof of celestial and planetary causes of terrestrial cycles that defied chance. Z changes everything.

To help protect some the Foundation's larger vision, some of our "bolder" goals will be kept quiet until the time is right to reveal them. This is to avoid any negativity from the "doubters," "naysayers," and habitual "dream killers."

With all this being said, part of what I envision is a massive computer center (like a "war room" only for peace), where thousands of cycles are monitored in real-time. These cycles will determine the location and intensity of various geological and weather events, potential asteroid impacts, potential terrorism occurrences, airplane crashes, crime and the occurrence probability of other events. With this knowledge, we should be able to predict and prevent unnecessary losses of life. In fact, with our knowledge of cycles prior to Zarathustra, I was able to predict, to the day, the cyclic values of Iraq war casualties. This knowledge could help steer our troops out of "danger zones" -- times and locations of intensified risk.

If all this brings to mind the movie "Minority Report" with Tom Cruise, well, you wouldn't be far off. Perhaps someday we'll have the accuracy to predict daily life events for individuals with a high degree of accuracy. However, my own feeling on this is we need to be careful with such a science, as there will always be room for error and it would also be ripe for abuse. Thus, as with any new science or technology, the ethical implications should always be deeply considered at the beginning of developing such a science. Your input, as members, will help us shape guidelines and protections so this predictive technology is not misused or abused.


Both promise and concern

It is with both great hope and the right amount of caution that I move forward with our Z members in furthering this technology. But I have a personal faith that in the grand scheme of things, everything gets taken into account by cycles and everything balances out in the end. Still, there are always ethical considerations to keep in mind with any new science.

When the atom was first split, there were obviously huge ethical implications with such an advancement.

Were such ethical considerations well-thought-out in advance? I don't know. Maybe. But, overall, mankind has somehow learned to live with this awesome power without destroying themselves thus far, and nuclear energy has been a boon overall.

When it comes to accurately predicting cycles, such knowledge can be used for good or for ill, as well.

The Rothschild family hired Fourier to run the math on the markets to see if Fourier could uncover any cycles they could use for investing. Sure enough, he discovered the 40-month market cycle. The Rothschilds then used that knowledge to amass a fortune, keeping their secret to themselves for 100 years as they built their banking dynasty. This, of course, was all "written" within the cycles themselves for them to become as powerful as they became.

With the knowledge that Zarathustra can provide, one can amass a fortune far greater than the Rothschild's could have dreamed of, as it is infinitely more potent to work with the actual cause of all cycles than simply discovering a single cycle. But I do not believe this knowledge should be used for selfish purposes, but rather, it should contribute to the greater good.

Andrew Carnegie, Napoleon Hill's mentor, did not think money should be used selfishly. Carnegie was not only the world's wealthiest person, he was also the world's greatest philanthropist. To me, that is the correct use of Zarathustra when it comes to predicting market cycles.

I don't wish to lecture anyone, but I do encourage our members to learn from the truly wealthy, such as A. Carnegie and W. Stone, who insisted that to become truly wealthy, one must be truly generous in all ways.

Social engineering and predictive technologies

In the wrong hands, is it possible that students of human behavior could literally use a technology like Zarathustra to enslave the masses? I think it's possible. They would be able to predict society's patterns and use that against them. This is currently being done on a wide scale with algorithms running incredible amounts of personal data naively posted to Facebook and other places, and is being used to cultivate certain buying behaviors among other behaviors. With such knowledge, one can effectively engineer the social fabric on the planet -- again, for good or for ill.

On the flip-side of any potential negative uses for this predictive technology, those currently in power who may not have humanity's best interests in mind could possibly be put out to pasture with such technology. Again, it's all in how it is used.

Predicting biological cycles

In addition to our "peace room" that will predict and provide alerts on world events, I also envision using Zarathustra for predicting biological cycles. Our bodies operate using many different major and minor cycles including cellular respiration cycles, cardiac cycles, reproductive cycles, the Krebs cycle, hormonal cycles, the ATP cycle and many others. With Zarathustra, we'll be able to discern new ones and track them with great accuracy, as well as predict when our cycles may be changing for the worse and, thus, give us time to intervene. For instance, with our current knowledge, we can take just 2 hours of heart rate data and predict the heart rhythm for that person over the following 36 hours. With this knowledge we can design a device that would alert doctors to any potential "danger" periods for cardiac patients at home or in an intensive care unit so they can more closely monitor them and intervene with care as needed.

This is just one of the many possible applications I foresee for Zarathustra and cycles discoveries in general.


Living in accordance with cycles

Again, to use the analogy -- Zarathustra is like an infant, and the future of this child needs to be guarded, as well as cultivated and guided. When fully matured, I expect Zarathustra will help bring a higher degree of harmony and balance to both our personal and world affairs. This is because a big chunk of the problems we face as human beings is due to our completely ignorant belief that we are cut off from one another and from nature -- including from planetary influences -- when, in fact, we are all intimately connected via the cycles that surround and influence us, as the moon controls the tides.

Many of our world problems stem from our unconsciously living and working against cycles because we have been ignorant to their existence. And yet, as you know, ignorance is no excuse for breaking the law. It's the same with cycles. If you go against them, you pay a price. However, as you align yourself with them, you enhance yourself in every way. Our former president, self-made billionaire W. Clement Stone, recognized this when he stated in the book he co-authored with Napoleon Hill:

You can meet the problem of cycles and conquer it intelligently. In so doing, you can often acquire a fortune.

~ W. Clement Stone, Success Through a Positive Mental Attitude

As a society, once we uncover and document more of the major cycles that control and influence our lives, more of us will inevitably begin living and working in greater harmony with them. In doing so, our lives will become simpler, easier and more abundant, and perhaps humanity will slowly evolve from its current state of fear, separateness, and destructive self-centeredness into greater interconnectedness and peace.

From a greater understanding of and appreciation for cycles, we'll also be better able to support the natural cycles that bring life, instead of disrupting and interfering with them, and thus work towards healing some of the environmental damage humanity has done.

Will you join us?

It is my sincere hope you'll join the Foundation in this bright new future I'm envisioning, which will be based on society working with cycles instead of against them.

Our vision is a noble one; to uplift the entire human race. I hope you'll participate in this mission. According to one of the surveys I sent out, 75% of our members don't care about helping humanity nearly as much as they care about trading markets. That's fine... but I do care. In fact, that's what drives me, inspires me, and has kept me going through many difficult periods at the Foundation.

Trading the market using cycles is all well and good, and quite frankly, the traders are the ones who have kept the Foundation afloat financially for all these years and without them, we wouldn't be here today. So my sincere thanks go out to them. But also, I suggest you "raise your game" if you haven't already. Think more outside yourself in terms of "What can I give?" versus the "What's in it for me?" mantra that many of us repeat.

Recognizing that everything has a cycle has helped the Foundation through many challenging times, because we know that for every down there's an up right around the corner.

Request for Volunteers

Will you help us? We need you to lend whatever support you can.

We welcome your volunteering your expertise.

As a member, do you feel, as I do, that the Foundation and Zarathustra are, in a sense, living entities unto themselves, with lives of their own ruled by cycles just like the rest of us?

And, can you recognize that the Foundation and its current board have the HEART that it takes to truly help as many people as possible with the research that Dewey initiated in 1941 when he first established the Foundation?

If you see what I see in terms of how much this new field science will help humanity....

If you feel what I feel in terms of just how critically IMPORTANT this work truly is....

If you sense that the future of the Foundation includes a MASTERY of these cycles that greatly influence our lives, and that this research will lead to a great many discoveries that will benefit the entirety of the human race and other life on earth…

… then it is your duty, as a fellow human being, to help protect and nurture this Foundation and her research that I feel is destined to help countless others.

It is with those words that I conclude this, our final chapter in our Foundation history.

Disclaimer:  Nothing in this article or in the linked articles should be considered to be individual investment advice.  You should speak with your financial advisor and understand everything fully before committing money to any investment.