The Dow retraced as expected, approximate mid point, close to 30 degrees
off the low. That's a reliable event, and consistently tradable. See Dow
chart attached. Examining past trades, they were my best, and the ones
I could always hold the longest. Not good, since they are against the
main trend; me being easily able to go against the crowd, it is
something I have to work on to progress the trading. We have had a
5-week rally so far, if it lasts 5 weeks it should go till 7 weeks. 7
weeks is an important time frame, being 49 days, 49 the square of 7
(7*7). Gann called this the death zone, no idea why but probably
biblical related, plus it might have sounded good in promotional material ?
I can tell you however that 49 to 52 day / week /month time frames in
the market come up often, too often to ignore, and I have effectively
traded some in several futures markets in the past. So it was more than
just any promo stuff for Gann. Ironically, would you believe it, 49 days
from 24/7 is 11/9. Key runs do often terminate on this time frame.
Something to watch.
Speaking of 11/9, anybody hear anything more about those insider-trading
investigations since. Don't seem to have progressed far do they... Told
you they wouldn't. Personally I think there are a few things the
authorities do not want revealed here, such as complicity, but then I
love a good conspiracy tale ...
Seen CRS lately ? Mid point to mid point, as suggested earlier. NCM just
did the same. I can't call it from here though with similar certainty,
one reason I wanted to study Gann much further. Always three scenarios,
sideways, lower or higher. (Duh) If higher, the current high of 90 would
itself eventually become a midpoint, Gann said past tops and bottoms
will often turn into mid points, which is obvious if you think about it.
So 90-50, added to 90, is 130. Could also do repeat range, 50 + (90- 24)
= 116, which will offer resistance first. The gold price would have to
go higher for this to happen. Note top 30/5, low 29/7, and mid point
30/8, price into time. Time to exit the trade, as I did Friday. I have
had good success with such set ups.
If you can find such a set up on weekly charts, or on the futures, or
options, they are more profitable, a wider range is involved. But I
should say also, there is better trading in finding trending stocks, and
getting in early, e.g. ias, sgs or ics. Study these sorts of charts to
prepare yourself for the next one. There is always another
one around the corner. Me, I have to work at not jumping off too early.
Click here to see the file...