Discuss Gann’s perspective on the significance of market breadth in forecasting.
Discuss Gann’s perspective on the significance of market breadth in forecasting. Market breadth refers to the direction of individual price trends. As an investment professional, a trader, and an investor, I have found the lack of appreciation given to the importance of market breadth to be a symptom of the illness that befalls traders too often, and investors, at the onset of a speculative market, such as the past five years and especially 2010-2012. It was in the summer of 2009, when the last of the “greatest depression” was finally over, and stocks were starting to show signs of recovery, and I was feeling good as a professional financial strategist and investor. I was on track to be able to begin financing this site (where I write about various aspects of investing, analyzing money and the economy). I was engaged, I was happy, I was content. Then I began following the price of the S&P 500 (spx) through the end of 2009. During 2000 the S&P 500 had never shown a return below -15%. Year 2000 ended up a -15% loser as the market went on to double, triple, and above again over the following decades. After some research, I began writing about market breadth on a large number of news sites, including Yahoo! Finance, Forbes, and MarketWatch, among others. Soon, word got around and visitors and comments began pouring in. That’s when something interesting began to happen. During 2009, when the market was moving higher with momentum in one form or another, people began telling me, and telling others, to “sell the news” and buy this dip.
Financial Alchemy
“This is going to look like a breakdown”, they would say. Anyone inclined to take their investing direction from commentators based on what came next will find that quite frightening. The VIX (implied volatility of the S&P 500 index) was at 14.8%, which was the highest point since 1986. What should you do? Stand pat for a breakdown or run for the hills as stock prices fall? Back in September of 2009, I wrote to you about my predictions. I noted, “I think it is quite certain that the market will be down in the first part of 2010…” I was far from alone. That was what all market commentators were saying—that 2008 was only the calm before a new wave of volatility. It took all of five months, just a few weeks into 2010 for me to take this approach a step further. I began looking at market breadth (which is the breadth of the individual stocks), and to those acquainted with charts, what I was doing is no different from what a trader would do when evaluating his/her own trade. My analysis was looking at “S&P 500 equity market breadth”, and every day I calculated the past 30 days’ performance of the 6500 S&P equities on theDiscuss Gann’s perspective on the significance of market breadth in forecasting. Do you agree or disagree? Let us know in the comments section. End of the week update: Stock market rally and a fresh signal of uptrend The stock market enjoyed a nice rally this past week on the back of fresh institutional bullish interest and fresh positive economic data supporting a rising US economy. The S&P500 ended 2019 at 3254 and ended the week at 3249.
Price Patterns
03, up 9.4% over the prior week and up 25.08% for the year to date. The S&P 500 outperformed the Nasdw 100′s up 25.22% for the year. With the Federal Reserve raising interest rates in December and signaling a willingness to continue hiking at a slow pace of increasing rates from now through the end of the year, investors appear to be welcoming this ongoing tightening cycle. The market rallied higher to cap off the weekly and the month high volumes, perhaps as a result of the very recent US govt tax cuts, positive news flow and encouraging data flow. Traders are betting on the continued easing of forward guidance on rates by the central bank and a continued recovery in the economy. Click image to enlarge (Source. Traders.com®) LNG shipments ramped up this week with new customers paying to retain more exports volume. A surge of crude oil exports this week as well and was on track to reach a new record high with the end of year. In the following five days, the stock market should be front and center of investors’ agenda.
Planetary Aspects
We expect some form of earnings season. Leading the earnings countdown next week and through the all important February market report is Gann Financial Group as it releases updated earnings for the last quarter of 2019 through a Q4/QE3 window. No economic data is anticipated for February. To read and subscribe to our earnings forecast click or visit our special section on GannDiscuss Gann’s perspective on the significance of market breadth in forecasting. Hi, guys. This is probably the most significant topic I’ve written here at StockPredict. This is an important topic especially for market makers and market technicians. Most of the time that market makers discuss market breadth, they do so in a dismissive, condescending, and unhelpful manner. It’s a shame because you’ve stumbled upon a great online resource that has wonderful information and graphics. If you know that this is a good market, you should at least study the chart above. Once you place a limit, based on the 100-day moving average, you don’t have to even make any technical analysis. That’s what made the first chart I showed as an example. Right there you have the simplest approach.
Square of 52
Simple, in fact, it’s what many highly regarded forecasters are doing. You can never overestimate the importance of understanding market dynamics. Most market technicians have good, analytical ideas, but they’re way too lazy to analyze. They’re lazy because it’s a simple process. Once they see a market that is ranging or trending, they move the stop to a breakout bar, and watch for the breakout to hit a projected distance from the daily moving average. That’s as far as they calculate things. Many market technicians look at market breadth like Gann, and refuse to even acknowledge it at the time that Gann refers to it accurately. That’s because many market technicians have the belief of market manipulation and shorting that is responsible for the stock market rally. useful content believe in the “pump and dump” strategy. They don’t believe in fundamentals—it’s easier for them when the fundamentals are weak, and the problem is easy to spot. “Pump and dump” is less intimidating and more easy to accept. The “pump and here are the findings strategy is more apparent in stocks that are trading below the market’s price-earnings multiple. As a market technician, you don’t have to talk about fundamentals; in fact, you don’t believe in them.
Trend Lines
As a market neutral hedge fund analyst, your job is to try to make easy money by means of the following strategy of manipulation: Significantly increase short interest ahead of earnings dates “Pump” or artificially prop up interest ahead of earnings Increase the perceived probability of a price sell-off ahead of earnings The “pump” and “dump” strategy is an important part of this discussion. First, let me start with the good news. The “pump and dump” strategy doesn’t exist any more. There are still pump and dumpers out there, but they’re very rare now. They talk to the media, and they were caught with their hands in the cookie jar. Trading off of some form of the “pump and dump” concept is a serious issue with the SEC. Despite the demise of the “pump and dump” strategy, market technicians don’t think very