BEANS - Follow up….
Beans have finally broken to the downside as expected BUT were Mars and Jupiter useful it’s for you to decide?
These things make great fodder for Web Pages and Newsletters; Showing things that on the surface look great but as a trader on the coal face it’s a different thing.
If you had gone short on the 31st May , basis the Mars Jupiter conjunction you would either need a stop a minimum 35+ points away from the high or heaven forbid no stop at all ( I would NEVER do this, nor would GANN ) as the market did 2 days down and then 7 trading days up to make a new high.!!
34 3/4 points or around $1750 a contract higher .
The only direct hit from memory was Feb 1951 and Gann never wrote about it. Why?
In the end you decide if you could trade this as a stand alone set up, if you can the next one is around 14 August 2024 !
There is a way to use this information, and I’ll be sharing that at the next workshop.
In the mean time we will keep banging away, with the Mechanical System, where there was another +/- 35 points a contract to be had when the market moved higher AFTER the Mars Jupiter Conjunction.
If you dont have a solid plan maybe we can help - promises of blue sky is great - Profit in the bank is better.
May the GoFR be with you.
BEANS - Are we there yet ?
It seems timely to write a note on Soybeans.
Gann traded them and wrote about them extensively, and there is a famous chart showing the 1948 top that is touted by many to hold all Ganns secrets !
On this chart are 2 planetary lines that intersect , this is where the planets were conjunct. Mars and Jupiter were the culprits .
There is a lot more to be said about this chart, but we are at an interesting juncture , with a Mars and Jupiter conjunction occurring on 30 May this year. The issue is these things dont always give turns, but given the cycle should be done, they are worth watching.
If you have a solid trading plan these things can be powerful editions to your arsenal.
Rock - Paper - Scissors …
17 Feb
Remember that game when you were a kid?
About now you're thinking he’s nuts what could this have to do with trading ?
To this end I have often though about trading in terms of a game of Rock Paper Scissors but with 4 components.
Fear, Greed, Profit, and Trading Plan
But be conscious that in trading fear has 2 components
1. Fear of loss – you won’t enter the trade and
2. Fear Of Missing Out - you won’t take profit or quit - that’s essentially greed.
and
Trading plans include trade management.
Here are the rules of the game and think about these VERY carefully.
• Fear beats profit
• Greed beats profit
• Fear beats greed
• Trading Plan beats Fear
• Trading Plan beats Greed
• Trading plan and profit are neutral they go hand in hand.
Think about this for a second. Absorb it well for it may be the best analogy I have come up with for this.
What can you learn from this game ?
For me it is this: the only way to win this game is play Trade Plan / Management every time.
This is how I deliver constant 3 figure percentage returns every year.
This is essentially what GANN was teaching ..
No plan - no sustainable profit .
Thats where we can help ….
May the GoFR be with you….
Form Reading - The Art in the Chart
Gann was an incredible form reader there is no doubt about that.
Today I thought I’d share something from this weeks Supply and Demand letter. A pattern I like to watch for .
Multiple bottoms above important lows can often be a sign of strength - I have had out subscribers on alert for some time in relation to this chart.
In this case we have a double bottom , above a double bottom right around one of GANNS seasonal dates .
For an astute trader there is a lot more to see in this Silver chart.
The current move could well be a retest before moving higher.
As always we have to wait and see and trade our plan, but being forewarned is being forearmed.
May the GoFR be with you ..
Crude - What’s your Angle ?
When you have a solid trading plan like Gann left, and you can understand how to use it.
Angles add a new dimension to your ability to call reasonable turns.
It’s not just the angle but the ability to read the form around the angle. Gann was a mater of this.
What’s the market telling us at the time, remember in hindsight it’s easy, we live in the white space on the right of the chart.
In this case these angles, in conjunction with Ganns other rules like his 7-10 bar rule, and anniversary commentary, could have you short at the last top in October 2021.
7-10 weeks up and 36 months after the 2018 top . The 12 and 24 month anniversaries also gave tradable turns. There’s a lot more information on this chart can you see it?
Knowing this, was the 1x1 monthly angle useful?
The Mechanical System, had you short very close to the top ( 6 days later ) if you were not in the mood to short the top.
28 bars down to the low and another angle means something to a trained Gann Practitioner.
Would you agree it is illuminating when you know what to look for?