More on the January effect - Tue, 04 Feb 2003

January is an important month to watch in the US for stocks, 'the high and low in Jan should always be watched', said Gann. Quite often this sets the trend for the market over the coming 180 days. ie if January proves a top for the month, the market then often continues down for some time after that.

Gann also said July is always an important month to watch like this also.

Have a look at the attached chart and see if you can see what I mean.
Of course the above cannot be viewed in isolation to the trend and other Gann comments, but I have found it interesting to observe over past years.

I am confident subscribers would have learned much from the email service carried out by Brendan the past two years. I felt it was pretty damn good.

I note that in this time, over the last 18 months, there was not one Aust fund I believe that produced a positive return, and last year, very very few hedge funds managed a positive return either (and none over 10%). Gann's stuff speaks for itself, and was well taken on board by Brendan over this time. Trade the trend, trade the breakouts in the direction of the trend, watch time, watch for set ups. Easy to say, much harder to do, takes time to learn and is opposite to most everything else we had learned in life up until discovering Gann. There might be a B.C and an A.D, but there is also a B.G and A.G I reckon. I will miss that weekly update, but like George said once, 'all things must pass'.

Keep in mind also that during this time, we were trading a severe bear market, first for a decade, and first time for most of you. Not only did we manage to preserve our capital, we increased it by almost half. Great effort for a first time with the bear.

Click here to see the file...

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