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Markets approach critical point

Markets approach critical point
 

W.D. Gann stressed the idea that “When time has come, then and only then will a market move”. More deeply his insights point to the equivalency of time and price as superficial markers of energy. Current calculations suggest that time is running out for various financial sectors to reach critical resonance points correlated with directional shifts. Specifically,the period between May 14 and May 17 marks an important time window for the stock market. Correlated moves in silver and gold should ensue. Between now (Sunday, May 11) and the middle of the week, careful observance of the market’s trend will suggest appropriate speculative strategies. Long term, stock prices have been edging higher, and accordingly, should the market move up into the middle of the week, it would suggest an imminent top, from which shorts should be established. However, since the March 7th top, and even the highest top of April 4th, price action has more or less been corrective in nature, or at least could be viewed as consolidation. My research indicates that when price channels sideways into an important time window, about 70% of the time, the market breaks out of the channel in the same direction it was trending prior to the channel. Obviously, in this case, this would be bullish for stocks. Should the market form a top by the end of the week, though it would represent, as mentioned above, an opportunity for a short, I don’t think it would mark the end of the generic bull market, but rather more likely another in a series of corrective moves within the broader bull move. My time projection indicates another critical time window for the stock sector around the third week of October, 2014. This more distant time point I expect more likely to coincide with the bull’s final demise. In  either case, I’ll be watching this week’s price action closely, so as to determine the best possible setups for trades.

 

Webinar Recording 05/14/2014

 

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