GannAngles

Copyright 1 991 Kahn

TO TRADE WITH

GANNTIMER

A

REVERSAL SYSTEM BASED SOLELY ON TIME

GANN ANGLES,

a

monthly

newlelter

using

the technical

meihods

of

W.

D.

Gann

since

1983, recently introduced GANNTIMER, a mechanical trading system utilizing TIME rather than

price.

We are all lamiliar with trend lollowing and mechanical lrading systems that include traditional cycles and

wave analyis as intregral components but this is an innovative use ol TIME as a stand-alone reversal system.

GANNTIMER evolved from

a

monthly feature in GANN ANGLES called "180 Degree Dates" that

was based on

a

simple Gann principle, that a change of trend occurs at the "Midpoint in Time" from

a major high or

low.

Gann postulated that changes in trend occur on the one year Anniversary from

a

major high

or

low.

lt's

become almost

a

given that 507"

retracements

in

PRICE

are

important

stopping places but Gann believed that TIME also has support and resistance at the 50% level. He called

it the

Midpoint

in Time,

or

"180 degrees"

or

Days

lrom

a

signilicant high

or

low-

That's 26

weeks,6

months from

a

maior high or low and research, application and experience have proved

--that Gann's principle is

correct.

Trend changes really do occur at this pivotal time period. Eight years

ol

tracking and trading "180 Degree Dates" in GANN ANGLES has proven it's worth.

GANNTIMER

began

with 180

calendar

day

projections

and grew into

a

computetized

dale projection program that generates twenty daily dates and ten Weekly dates from each major high and

low in 25

commodities. lt's a

reversal trading system based solely on

TIME. lt

applies the broader Gann geometric

Time

Principle which states that trend changes

lrom

extreme highs and lows occur

at

Divisions of 360 degrees.

360 divided by

2

₌

180

360 divided by

_{3 =}

120,

240,360

360 divided by

4

₌

90,

180, 270

360 divided by

5

₌

72,

144, (288)

The

GANNTIMER Trading System utilizes DAILY Time divisions of 360, with tabulated counts

from highs and lows

in

both Calendar AND Tradino

davs.

For example, 180 trading days (TD'S) is 2SZ calenda( days (or

CD's). Eightyearsof

experiencce with the "180 Calendar Day" feature shows

that at swing highs and lows, both 1 80 CD's AND 180 TD'S can "cluster" at one moment in

Time.

Of

course, it can be ANY combination of divisionsof 360, such as 90 TD, 180 CD and 144

TD.

Themore

dates that coincide or "cluster" on a singe date, the stronger the ensuing reversal will be.

ln

a

,

using both calendar and trading day counts, there

will be a

total

ol 20

Dailv Time counts generated

lrom

each swing High

and

Low

date.

But that's

not

all.

WEEKLY

360

division date

projections

will be

overlayed on

the

daily

projections.

Because weekly clusters occur infrequently,

THE GANNTIMER TRADING PLAN

The beauty of this system is its

simplicity.

The only requirement is a daily commercial chart or a

daily chart from

a

quote

machine.

The

charts are needed

to

follow

the

many markets that

will

be

tracked, and to lransfer the projected cluster dates lor the month listed in GANN ANGLES into luture time with

a

highlighter.

There is one judgement call that is required, regarding the overall market Trend PBECEDING the cluster

date.

The trader must decide whether the Trend, the current "swing" or "leg" -- is up or down.

This is not difficult, even for a novice, as the shortest daily date projection is 90 calendar days; that's three

months.

Once that decision has been made, entry

is

100%

mechancial.

GANN ANGLES will often give Trend lndication

lor

each market but il the trend is not crystal clear to the Trader, the trade

should NOT

be

laken,

period.

There will be far more trades available than a single trader can take

anyway,

so

the best advice about the Trend iudgement call is -- WHEN lN DOUBT, STAY OUT.

ENTRY RULES

1.

When the Trend is clearly DOWN, 2 trading days prior to the cluster date place an entry BUY stop 40 points above each trading day's High. The 40 point rule includes Stock lndices, Pork Bellies, Cattle, l-logs, Cotton; Bonds 8 ticks;

Gold.40;

Silver, Soybeans,

Grains,4

cents;

Currencies.25

points.

lf

no rcversal occurs, continue

to

trail the market down, lowering the

entry

Buy Stops each

day.

The Time "window of opportunity" is open lor 6 trading

days.

Two days before, the day of the cluster, and

3

days alter the date.

The same rules apply when the trend is clearly

UP.

Place entry SELL stops BELOW each day's low starting 2 trading days BEFORE lhe cluster date, the day of the cluster and 3 days after the date.

2

DAY EXIT

RULt

2.

When the

reversal occurs and

the

entry

stop

has

been

executed, an open protective stop is entered 40 points below the low of entrv dav on a Buy trade, or 40 points above the hioh of entrv day on a sell

trade.

The immediate availability ol a related, non arbitrary stop combined with its limited risk

stop aspect, makes GANNTIMEB unique compared

to

other trading

systems.

When the trade has been profitable for 3 days, stops are

raised,

trailing the market with stops 40 points below (above) the

low (high)

lrom

previous two davs. That's all there is to it; for short term trades, the "2 day stop" rule

is simplicity itself

.

The

lrade is

held until it's stopped out. EXIT VARIATIONS

Or, if a trade has been held for 5 days without being stopped out and another cluster date is due,

profits can be taken on the next key date on strength, without waiting

to

be slopped out.

Or, traders can use momentum oscillators, moving averages, attained price obiectives, breaks of

Gann angles or whalever a favorite trading method for exit may be. GANNTIMER is complementary

EXAMPLES

OF

MOMENTUM MOVES

Often, these trades are so powerful, that traders may tind that they have bought or sold on the first reversal day

ol

a

MAJOR TREND CHANGE.

Stock lndex futures have been outstanding examples of

this.

ln

1990, every maior high and low was a multiple GANNTIMER

cluster.

On Jan 14, 1991 , Stock lndices had a quadruple

cluster:

90 CD,

90

TD,

143

CD,

and

180

CD.

That

move

was

a

rocket launch

of

7000 S&P

points in

less than 2

months.

(The 2-day Exit rule held the trade until Feb 15, 1 991 with 6400 pts.) The next high after Jan

14 low

was on

Mar

6,

1991 which was another quadruple

cluster:

90 CD, 91 TD, 72 TD

&

180 TD. That swing was 1400 S&P

points.

Again on Dec 2 1991, a 90CD, 180CD & 144TD brought in a 3000

point S&P move.

These are dramatic examples in one market, but there are outstanding trades available in the antire commodity spectrum occurring every

month.

They will all be listed in this new and exciting leature in GANN ANGLES.

TRADING TIPS

Trades

can be taken

using

the

GANNTIMER

cluster entry system

on any

single

90

or

180

CALENDAR day count. (90CD

or 180CD)

These two time periods are so strong that they don't need the reinforcment of other time periods to bring in a successful

trade.

But when more than TWO datcs

cluster, it olten brings a sustained reversal

move.

Clusters can be any combination; all trading days,

all

calendar days

or

mixed.

When FOUR or more dates converge, the reversal will be sustaincd in

time, with powerful momentum in the direction of the new trend.

When Weekly counts cluster, they are so significant, it can change the YEARLY

trend.

On the rare

occasions

when

these stellar

opportunities

appear,

the

number

ol

units

normally

traded

can

be

increased and/or

diflerent

trading strategies can

be

employed such as positioning in distant futures

contracts or buying out of the money call or put commodity options. COPING WITH RISK

When you begin "Trading with Time", lrade conservatively, ALWAYS WITH PROTECTIVE STOPS.

Take as many of the trades as possible, within account limits, and tollow the

rules.

Use it as a short

term profit

center.

Don't hesitate to trade in

a

commodity group that

you

haven't traded before, _iust use the 40 point two-day exit

rule.

Remember that no system is loss

proot.

Winning trades take care of themselves, it's how LOSING trades are handled that separates consistent winners from consistent losers.

DOING IT YOURSELF

It's a great convenience to have a computer program that projects the Divisions of 360

loMard

in time but it is not a

necessity.

Anyone can use commercial charts to simply count out the time periods

from highs and lows,

marking

the

counts

on the chart but

keeping

them

in continuity.

Here

is

a

lf

High

or

Low

is in

month of:

MONTH 90 CALENDAR 90 TRADING 180

CALENDAR

180 TRADING

DAYS DAYS DAYS DAYS

January February March April May June July Aug ust September October November December 3MO (64 TD) April May June July Aug ust Sept October November December January February March 4MO May June July Aug ust Sept October November December January February March April 6MO (131 TD) July August Sept October November December January February March April May June 8 MON

sep

Oct Nov December January February March April May June July Aug ust

The Schematic is designed lor DAILY Charts, with both Calendar and Trading days counted. Adding

counts

of

144 calenda( and 144 trading days will increase power of the

clusters.

ln addition, Weekly

and Monthly 90, 180

and

144 counts should be added "clustering" with daily

counts.

Count Calendar and Trading Days from all MAJOR Highs and MAJOR

Lows.

Carry the Time counts across your chart, marking future dates with colored highlighters. These become your trading "windows

ol

opportunity."

GANNTIMER has two characteristics that make it the ideal trading

vehicle.

First, the entry stops

require the MARKET ITSELF to act by reversing the prevailing Trend, rather than the Trader making

assumptions

about

price or

time, that

may

or

may not be

colrect.

It

the

reversal

does

NOT occur

within ihe 6 day "Time Window", no Vade takes place and therefore, no loss is

incurred.

The second

leature, equally important,

is the

very

low

risk stop that

is

immediately available when

the

reversal

Use

Gann's charting

methods to

gainfrom

today'

s

high-tech

markets

Logic and reason would tell y'ou other-wise. yet 25 years later. the July 4ll high helped identifv the 1913

high.

Of

course. other Cann techniques must be used to confirm such calculations but it

begins with information from a

con-tinuation of the same contract month.

November sovbeans have their own unique signature that differs widely from the July contract. The all time low

of

November beans was made in

Febuary. 1940 at

l9l

l14. In 197-1. 34 years later. this contract rnade new his-toric high at 956. an "exact" five-time

multiple of l9

I

I11.

In 1983. November beans made a new

historic high at 968 but even then. nine years later. that five-time multiple still

held its ground as re.sistance. Although

November. 1983 soybeans made three attempts. there was not one close at or

above 956 and the third high was _$e top

of the market. Also coming into play at that top is Principle number two:

When two contracts (or more) of the same month but different yf.an are trad-ing simultaneously. all the angles.

Mid-points. support and resistance apply equally to both contracts.

In August. 1983. while the powerful

bull

market was

in

progress, the

November, 1984 contract began trad-ing. It opened $2.50 below the Novem-ber. 1983 contract. Plotting it on the weekly Novemberchart showed that the

distant contract was far below all the angles supporting the front month and

Char:ing it

Gann's

Way

Phvllis Kahn

requently. new' students

of

the

Gann methods become mired in

complexities even when several of the most simple and powerful Gann concepts are so easy to understand and apply. For example. no market master before or after Gann has recognized the

importance of treating each commodity contract month as a separate and

com-plete entity. Gann's remarkable prin-ciple (an observation made over 50 years ago) that a mathematical

relation-ship and a continuity in price extending

over years of time exists in the same

contract month is a tribr.rte to Gann's genius that proves itself over and over

again even

in

today's

high-tech markets. The rule. requiring weekly and

monthly charts of an individualcontract

month to be plotted in continuity from year

to

year applies

to

all

futures

markets. Since soybeans were one of Gann's favorite markets, we'll use it to

illustrate how relevant the principle is

(combined with otherGann methods) to

market analysis that leads to low risk.

profitable trading. There are several reasons why Cann insisted that this was the only way to chart commodities. Principle number one being the

follow-ing:

To retain mathematical purity for price projections. Gann taught that significant

highs were mathematically related to

historic lows and/or historic highs.

If one uses weekly and monthly

com-mercial charts utilizing "nearby futures" updating. lows and highs

of

price

swings from different contracts. they will produce erroneous results for range calculations and price projections.

t2

Mathematically, it's like mixin_e apples and bananas. "Nearby" charts can also

show double or triple tops or bottoms

that when compared to "same month"

charts. they do not. in fact exist.

'

A powerl'ul example of how

impor-tant this occurrence is, is at the all time

high in soybeans. The current historic high in soybeans was made in June. 1973 in the July contract. In 1972. the

July contract took out its own historic high from 1948 entering new uncharted

price territory. A Gann analyst would take the old high. 433, multiply

it

by

two. and then by three (three is

impor-tant in Gann methods). When prices

sailed through 866.

it

was clear they

were headed for higher levels. Multi-plying 433 x 3 ₌ 1296: this calculation

missed the I 290 high by only nine cents.

JUL SOYBEANS i illl ,"1

rilii

jlliltl

l,t/

'

'il,t,*/h/qpnn,;' l 200 I 100 I 000 900 800 700 600 500 400 300 I 974 l 975

ct.rtP.rtxi t2.o. xAtLllCl 3. txc J.o. Il. l9co !.la:Jt

t972 I 973

I 970 l97l

bearish in a bull marker. ln August _{rhrough earl.v September.}

1983. while the _{front month Novemher. l9tt3 made a rop ar}

968. the distant November. l9t{-1. on rhe same charr. macle a

triple top at 721

.

Few traders. other than a Gann trader with a

November continuation chart up to date. coulcl have had the

foreknowledge to anticipate and rrade the top (orher _Gann methods were used fclr confirmation). Incredibre as it may seem, history repeated itself five years later in

lgllli.

When

November, 1988 beans hir 1046 _{in June. l98tJ. the November.} 1989 contract made high at 793. 52.-5-3 below,the l9tj3 con-tract!

While the November. l9tl9 contracr was duplicatins weak-ness seen at the 1983 high. another illustration of the value of keeping continuation charts was occurring simurtaneousry.

Most Gann traders keep at least three separate soybean

con-tract charts: November. Ma1' (Gann's favorite contract) and

July (it contains the historic high f or all conrracts ). During the

vertical bull move in June. 1988, as November. 1988 beans

were making new historic highs daily, a rrader following

May, 1989 soybeans on a May monthly "Gannstyle" _chart. would have been alerted to strong divergence occurring at the time. The monthly showed tops in 1983 at 996,and 1980 at 1006 in the May conrracr. On the high day in June, 1988,

amidst wild talk of "beans in the teens," the May. 1989 con-tract struggled up to 1003, a triple top with the 1980 and 1983

highs and made the top. This obvious nonconfirmation (in a supposedly unstoppable bull marker) gave rhe Gann trader the

foreknowledge,the confidence and the low risk opportunity to

do what few could do, follow Gann's rule. "sell against old

THE

POSITION TRADER'S

NEWSLETTER

I I

I

ere you on

the

right

side

of

"Black

Mon-YY

day?" Were you ready for the March '87 top

in Bonds? Gann Angles subscrlberc wetel And they

continue

to

receive Phyllis Kahn's valuable insight (often _{months in} advance) about the price and time when market swings should occur! Gann Angles fea-tures integrated yearly, monthly, and weekly analysis,

cycle summations, and squaring of price & time for

major stock indices and futures markets. Other

ex-clusive features:

. ll

x 17 updatable weekly/monthly Gann charts with predrawn angles

.

_The '180 Degree Turn" column projecting nrajor market reversals

Helpful introductory material included

with

new

subscriptions.

Phyllis Kahn app€ars weekly on

Financial News Network

featur-ing Gann market forecasts. She

has published Gann Anglessince

1982 to provide Gann analysis for

the

position trader. She

is

also

currently managing a popular op-tions fund.

If you missed the big trades in 1988, subscrlbc

to

Gann Angles to be ready for the big trades ln f989! Our December issue features the Gann out. look for the stockmarket in 1989.

Don't

mlcg

tf,ls

opportuntty

to

subscrlbe todayl

RETURN THIS COUPON OR PHONE

YES!

Please enter my subscription as indlcated.

!

6-Months (6 issues)

$180. a

BEST UALUE!

D Sample issue only. l-Year (12 lssues) t295.

Name: Address:

City/State/Zip:

(hst ptformance des not guatantec future succcss.) GA E9

l 000 950 900 750 ?00 650

During the decline that followed the June. 1988 high,

diver-gence again developed between the November, 1988, May.

1989 and November. 1989 contracts. This time. is was a bul-lish divergence as the two distant months strengthened on the

decline relative to November, 1988. And so it goes.a

con-tinuous monitoring of these separate contract month charts

will always bring information into the light rhat's available nowhere else. These "Gann style" charts are the foundation,

the base upon which the whole of Gann's analytic methods are

applied. No one before or after Gann has perceived quite so

clearly how the world of the market really works. Phyllis Kahn is the editor of Gann Angles,

NOV SOYBEANS I lh llliqr

tl'I1l

ll

lll

'^u{nrrd!r,rrr^i,[/''*l'

fl

Phylllc Kahn

PHYLLIS KAHN,

EDITOR

August

Le87

THE POSITION TRADER'S

NEWSLETTER

sF0ruGer

o[

TEE

smcf,

rrxrF

The

reluctance

shown

by

the

Stock

Arket

to go

down

during July

has

:rtainly

been

apparent

yet the internals

have

not

confirmed

nor is

the overall

evaluation

of a

top

in this

time

frame

been

invalidated. In fact

prices

could

move somewhat

higher without

changing the

outlook.

Let

I

s

look

at

some

of

the

Gann

reasons why

this is

so.

In a

stock forecasting course,

Gann

said ttln

extreme

markets

_,

(

no one

_can

deny

that

we t

re

i-n one)

prices

may

run

up

for 5

years

without a

major

correction,

but

watch

for a

change

in the

59th

month.rf

Ju1y87 was

the

59th nonth

from

the

L982

low,

so

coming

up

on August

9

is

the

5 year,

60

month

Anniversary date of

the last

major

low.

This

month

is

also

the

154th

month

up from

the

Oct

1974

low,

.=he

price

and

cycle

low

of this

almost

13 -

ear

old

bull market. Incidentally,

Gani

had the

same

admonition

for

YEARS

as

he

did

f

or

months.

ttAt the

end

of

ma

jor

cycles,

like in

1869

and 1929,

look

for

a

change

in

the

59th

YEAR.

rr

That,

friends

is

1988,

the

59ttr

YEAR

in

Gann's

major

60

YEAR CYCLE.

Sixty years ago in

L927

prices

did

not take any big

corrections

_'

just

a

Idaing pattern and then up

_.and ahtay

again.

Thirty

years

ago

in

1957

prices

topped

in

July

and bottomed

in

Novenber

which

is the

exact

pattern the

monthly

Cash

S&P500

is

showing

for

time

turning

points on the

Master

Price &

Time

Calculator.

Dail-y

and

weekly

cycles

in

the

S&P500

that

have worked

since

L982

are for the first tine late

and

prices

are

trading

up

into

the

next higher

(3rd)

price square on the

weekly,

both

positives

for

the

bullish side.

Thi.s

can

make

futures traders

and nearby option

players very

unhappy

but

nothing

has

really

changed

except

all

the

Averages

but

the

Dow,

have

gone

sideways

to

up

at

high

levels with

non-confirnations

abounding.

While

mentioning

the

Dow,

you

should

know

an important

resistance

number

that

is in play right

now

_--

2520.

This

is

one of the

most

potent

Gann

rrnaturalrt

numbers

because

it

t

_s

_360x7.

_(Natural

numbers

apply

to

everything as

opposed

to

calculations

based

on

previous

highs,

lows,

ranges, tine.

₎

The

Dow overcame

the

square

of

49

(the

strongest natural

number)

so of

course,

this

one

will

be

overtaken

too but

noL

without

backing,

filling

and strong resistance.

0n the

higher side for

the

Dow

is

a

really

big

barrier at

27OO. There

are

at

least half

a

dozen

Gann

type

calculations

based

on

lows, highs,

squares

etc. that

converge

at

27OO

suggesting

that

MAJOR }|AJ0R RESISTANCE

waits there.

Among

others,

the

L929

hl-,

386

x

7

==

2702.

AI{NIVERSARY DATES FOR

2 2 3 4

Hi

Lo

Hi

Lo Aug Aug Aug Aug 1956 I 963 1959 1986

31

years

24

years**

28

years

I

year

'Contt

_On

_Page

2

puBLrsHED By GANNWoRLD, rNc.,

3315

Martin Rd

Carmel Ca

93923 REPRODUCTION IN WHOLE OR PART NOT PEFMITTED WITHOUT PUBLISHER'S PFIIOR WRITTEN CONSENT

August

1987

Lo

Ang

Lo

A,rg

Lo

Aug

8

1896

9

L982

9

1983

Con

tt

From Page

I

ANNIVERSARY DATES FOR

the

Gann

Master

Price

&

Time

Calculators,

its

price and time

symetry

is

as

beautiful

in its

own

way

as

a

rose.

The square

is

38

(price) x

76

(time).

It

begins

in

Jun

1972

at

the

low

at

26.

The first

L/4 point

came

in at

the

e*lTr

low as did

the

Midpoint

in

Time,

which

then led to a

fantastic

run

up

to

the

high at

76.10

exactly

76 months

from the

low.

The price

high

on

the chart

was

made

on

Oct 10

1978

but

it

hras

in

the

Dec

1979 sengr'6g-t

_-:Es

distant

month

of

two

GE-ing at the

timil--Tne

nearby

month

high

was 6951 (L/8

inro

a

new.square).

The

higher

price

was used

because

it

was

a

square

of the

Time

period

in

monthr.-.

from

the

low.

If you study the

Chart

you'll

see

that both

angles

and

Time turns

were

superb.

Notice

that

the Midpoint

in

Time

in the 2nd

square

of

76

was

only

one

month

late

and

a

few

points

from

the

top

of

a ral1y

that led to further

declines.

This

Midpoint

rally

high

was

followed

by

another perfect

high

at

the 2/3

division

in

Time

also exactly

at

a Price

Division

on

the Square.

The

Square ended

at

price

35.35 on Feb

25

1985

at exact

End

of

rhe

Square

76

months

from

the

Oct

78 high!

Since ther85 low,

prices

have

been

rising at

a

sharp

angle

of

ascent

for

2

I/2 years,

holding

completely

above the

two

2xL

angles

drawn

up

f

rom

the

Feb

an/--May

85 lows,

seen

infrequently on

a

monthly

chart.

And

very bullish.

Notice

that

the

highs

in

Jan 87

and

M"J.87

each

hit into the triple

ttchannelrf

of

Ix2

angles

rising from the major

lows

in

1972

,

L97

4 and 1977.

As

classic

Gann

would

suggest,

the

channel

of

angles

has

acted

as resistance, holding

prices

for

a

correction. 0f

special

interest also

is

that the M.y 87

price

hieh

aL

7075

is

double

the

Feb

85

price

low

of

3525.

A11

pullbacks

and

corrections

should

be

supporLed

by

the

two

sharply

rising

2xI

angles from

the

low.

Currently

Dec87

Swiss

has

made

low at

the

6508

level,

above

t,he

monthly

angles

and

also

holding

above

the

monthly

low

rnade

in

March

at

91

years

5

Years****

4

years

66

years*

Lo

Aug

24

L92I

This is a

month

that

has

seen

some

very significant

time

turns

in

the

stock

market. The historic low in

Lhe

Dow

Jones

Industrials

lras

in

1896

(28.5)

91

years

ago.

The

L92l

low

was

an

important

one also

while the

most

recent

is

the

5

year

Anniversay

of our current

Bull

Market

_,

a

potentially

key

date

this

year

because

it can be a culmination.

As

discussed

earlier a high

made now can

lead us into a

major low

in

November.

This timing would be in

complete

agreement

with the timing already

in

place for

TBonds.

(36

weeks

from

high

is

week

Nov.13).

STRAGTEGIES

&

PRICE LEVELS

The

Cash S/P500

has

a price division

at

320

that

could

be

hit.

This

of

course

rouTt bring

the

Sep

S/P

up

into the

322

to

324

area

if

prices

were

to

surge

into

the

August Anniversary

date. IF

that

occurs, Bo

short

Dec

S/P

or

use

Dec

out

of

Lhe

money

options.

The

next

important

time turn is the end of

September

AFTER

expirations.

If you

have

lost

money

in

options

because

of

time

runni-ng

out, dontt be afraid to

reinstate

same

positions in

Dec contractsrFutures

or

0ptions,

BUT

deeply

out

of

the

money

is

where the

leverage

is.

Then

all

vou

need

is

patience,

dontt

be

short

of

that.

-,+ _t$

_{* tt *}

_r$

_ls

_{lr tt}

_{Jt lT}

_*

_t+

_lt

_l+

CIART OF THE I'O}rnI

DEC SWISS FRAI{C I.ONIIILT

This is the

enti.re

Suiss Franc froo

the

Currency

trading

in

1972.

history

of

the

beginnlng of

August

L987

6477. If prices

take

out

m.

going

above

the

triple

angles,

tt this

market

will

exceedingly

headed

for

years ago

at

Con t

t Fron

Page

2

strong

position

a test of

the

76LO.

the

high

at

ttchannel

_of

be in

an

certainly

old

high

9

Buying

Dec

Swiss,

6500

to

6600,

should

see

move

into

70ts

within next

12

weeks.

l.{inimum

objective

7100

to

7300

with potential to try for

the old

high

later

oD

r

perhaps

reaching 7600

bY

Midpoint

in

Time

in April

88.

rs

* lr lr * * * * * lt lt lt * * *

FWI'S

OI{ HTNAITCIAI,S

No

market

has

behaved

better

on

the

Gann

analysis than

TBonds

over

a

long

period of time.

While

the

stock

market

goes

its wilsy

ways,

Bonds

have

done

everything

expected

of them.

Letrs

recap:

In

March

87

,

Weekly

Sep TBonds

made

a

144 week

high

from

the

Jun 84

low

and fell

down hard

into

the

May

low at

-8603.

_{rices a}

(Objective

_few

_32nds

8600)

_above

The ral1y

_I/2

_way

_back

took

_and

now

another

decline

has

begun.

The

weekly objective

is at

the

8150

to

8000

level.

At

the

first 1/88

reektnto

the

new

square,

prices

had

already

begun

their decline,

breaking

angles as they go.

For those

who

understand

it,

a

weekly

rrgtr

angle

drawn

up from

the

Apr

86

high

was

broken on the

downside

when

prices fell

below

9LI6

basis

Sep

contract.

What

this

teattE-fi

plain

English

is that a

very

significant

weekly support

angle

has been

taken

out

in a

meaningful manner.

Price

lows

in

May87

hit the

angle, but did not

close

below

it.

I,le

have

already

had

a

whole

weekly range and

close

below

it.

It

sets

an objective for the

next

lower

angle

below

currenL

pri-ce

ob

jective at

8000.

TRADING STRATEGY

The out of

the

money

put

options

on

TBonds

are

too

overpriced

to

buy now; not

like they

were back

in

March

87

.

So

trading in futures is

desirable

under

those

circumstances

but

don t

t

trade

in

the front.

Move

out to the

MarchSS

contract; sbtt

on

rallies

and

hold

until

objectives are met.

0n

my

weekly

Sep

Bond

chart, I plot

the

Sep88 AND Sep89

contracts with

the

current

87 and

to

my

surprise,

on

the

week

ending

7/24/87,

the

Sep89

contract

was almost

back

to

the

price level it

reached

on

the

1or.r t'lay

22nd

at 82L6! If

anyone

doubts rhar

we t

re in

a

bear

narket

in

_Bonds

just

_look

at the

back

months;

they

are

falling

at

an

accelerated

rate.

Also look

at

other

financials.

The

weakest

of the

spectrun

of financial

futures

are the

Muni-Bonds.

0n

down

days,

they

really fall

but

you

dare not

go

out

any

further

than

Dec87,

the

volume

isn

I

_t

_there

_the

_way

_{it is}

_with

TBonds, the highest

volume

of all

futures.

Remember

that the

next

important ti-me

division on

the

weekly

square

is not until

the

L/4

point,

36

weeks,

due

the

week

of

Nov

13

87

.

Don I

t

buy

Dec TBond

put

optionilo6-expensive.

Look

at

deeply

out

of

the

rnoney

Dec

Euro$

put

options,

9050

and 9000;

contract

low

is

9013,

they

are

still

bargains.

ANNIVERSARY AUGUST IN

Hi

Aug

12

1954

Lo

Aug

20

I97O

Hi

Aug

23

1932

Hi

Aug

26

1977

Hi

Aug

27

1987 DAIES FOR

TSmS-33

years

17

years

55

_Y€ars****

10

_Years#*

1

year

As you see, these

Anniversaries

really

reach back

in

ti-me. Ihe

L932

high

was

in the

Dow

Bond

Average

and

that

makes

it

a

Fibanocchi 55

time

cycle.

The

L977

high

was

the

opening

week

of

TBond

futures and they

nade

a 5

year high

at

that time so it is

an

inportant tining

date.

If

prices

have

been

falling

hard

all nonth,

and

or/

price

objectives

are

Conft

Page 6

4

August

1987 0

'$

)0

_r{n

al

0

\

Ut rJn

lf!

x

,'{(0

tL0

!x

[) 3 lllalJ r l^ lx ( U'tEI 000r! 'IQ

0

u(

0x

(

\

SF

N

NZ '<[J z E0x( $x 0

0[0

tilLt'l> liv r! lJ. 0+0F

0[

rQ ,(

3

gI

0-0U

-\---'\

Ti't---A

* t::l-

- - - -) -. -- - - -) _{- - -} -I I ..1'. I l | :' I I I 't ,/'' i _'. : r t 27' i _' I I r:. I

t1,

I I -lt I rr !l 35 3l 27

5

_August

_I987 l:. !.r l; 't; -].\ -l-:-.! ' !..: !: t: t: t: -l-:-_!:

6

August

1987

ANNIVERSARY DATES FOR

hit, this

would

be

a time

to cover. If

prices are rallying into

the

end

of

the

nonth,

another

selling opportunity is

presented.

Other than

the

dates

above,

there

are

no

kqv dates

in

August.

r**tF***l+13*******

FOCUS ON SOYBEAI.IS

Since the high in

June,

the

_Price

pattern on the

weekly

November Soybean

chart is

not

typical of

Soybeans coming

out of

a

major

bottom.

The

lst

12

weeks

leading

into

the

double

top

were

typical.

A vertical

ascent

_{, a pullback into}

a

higher

high

that hit

an

angle from

a

high

a year earlier, right

on

course.

And

then prices broke the

45 degree angle

from the

weekly

low

in Feb87.

That

is

not

typical. It

places

the

entire

double

bottom

on

the

weekly

in

jeopardy.

Even

the high at

625

rnissed

the

I

/3

range

division

from

the

83

high

to

87

1ow

by

4

cents, not a

good

sign.

Here

are

the

range

divisions for

the

Nov87

contract

from

the

low:

| / 8=48O

.7

I / 4=5OI

.4

1/3s515 . 3

3/8--522

W=542.6

5/8=563 .2

213

570.6

3/ 4=583

.8

7

/8=604.4

These divisions

should

tell you

how

strong or

weak

this

market

will

be

when

it starts up to test

the high.

Notice

that

there

were

several closes

below L/3

as prices

dropped

to 508.

This

also

is

not

favorable.

If

you

bot the

low

(as

the

time

was

right), trail

the

trade

with

a

stop

below weekly

lows,

moving

it

up

as

price

moves

up. As it

gets

closer

to

timing below, pull stops

under

DAILY

lows.

Hi

Aug

Lo

Aug

Lo

Aug

Lo

Aug 197 4 197 2 L976 2 4 6

11 t978

13

years

15

years

11 years*

9

years**

10 years**

L4

years

L7

years

L2 years**

22

years

Lo

Aug

16

L977

Hi

Aug

17

Lg;,n

Hi

Aug

21

1970

Hi

Aug

22

1975

Lo

Aug

23

1965

In the

seventies,

August

was

a

key

month

in

Beans

but it has not

been

prominent at all

in the

eighties.

However,

this

August may be

the

exception.

There are

two

key

Anniversaries

that

frclusterfr with this

yearts contract low

180 degree

date

on

Agg L7 so let's

look

at

the

two

dates

above

from

1977

(Gannts 10

year cycle)

and hi from

L973

_{on 4ug 16}

&

_J7.

This

may

be

the

major

turn

of

the

month

in all

the

grains.

If

prices are

rising

into

that

Monday,

take

profits

and go

short.

If prices

are

falling into

the date,

Bo

long and buy options.

The

most

likely

scenario

is that

prices

will

ral1y

to

one

of

the

range

divisions

above

and

make an

important

top

on

that date.

The Aug

22

date is

144

months

ago and a

very

important

Lirne

cycle

in

Beans.

I

have

a

study on

the history

of

beans

from

I92O

showing

I-{AJOR

turning points

L43

to

L47

months

apart.

(one

_of

these months,

Itll

put

it in

GA.)

If

Midmonth

is

a high,

expect

the

Beans

to enter a final

downward

thrust

that

will

take out current contract

lows

making

new

final

lows

in

Dec87

to

Feb88

tj-me

slot.

Short Jan

or

Mar88

&

buy

deeply

out of the

money

Jan88

options

that week.

There I

s

plenty

to

be

made

whichever

r.ray

this

market

goes.

Stay

on

your toes.

August

L987

GOLD UPDATE

While

the

Bears

are

still

predicting

$100

Gold, futures quietly

made

price

lows in

the

8th

week

down

from

the

high

on

June

22 then

traded

sideways

to

up

during July.

That

June

low

was

also

L'}I

weeks

from the

Feb

1985

low, the

pti."

low of this decade.

Other

important

weekly

lows

from

the

t

_{85 low}

_were

_at

_4L

weeks,

57

wee-s,

_!Q

weeks

and

103

week{

all

harmonics

of

the

same LzO

week

cycle.

So

the

agenda

from here

shows

the

weekly

and

nonthly

charts

looking very

positive

and ready

to

ro11.

ANNIVERSARY DATES

ffi

FOR

been

soaring, profit taking

may

be

in

order

then.

If

prices are

falling

sharply

on

the

lst

trading

day

in

August, grab

up

those

out

of

the

money

October

options at

firesale prices.

Dec

Comex

Gold

has

weekly

objectives

at

527 and

555

with

key

weeklv

dates

Sep

11

aitNou

_{

It * *

.tt tE .,s J* Jt

tt * * lf * *

rf

ANNIVERSARY DATES FOR

I

Hi

Aug

I

1975

Hi

A,rg

2

L97 4

Hi

Aug

4

L972

Hi

Aug

4

1981

Lo

Aug

6

L979

L2

years*#

13

years

15

years

6

years

8

years

Hi

Aug

Lo

A,rg

Lo

Aug

Hi

A,rg

11

L978

Lo

Aug

L4

1970

Lo

A,rg

16

1968

Lo

Aug

L7

L982

Lo

Aug

18

l97I

Hi

Aug

18

L97 5

Hi

Aug

18

1966

Hi

Aug

24

1973

Hi

Aug

24

L976

Hi

Aug

25

1972

Hi

Aug

26

1977

Lo Arg 29

1975

Lo

Aug

30

L967

2 1974

13 y€ars*xx

2 1979

8

years

5 L977

10

years

Lo

Aug

L7

1973

L4

years

Lo

Aug

25 1978

9

years

Lo

Aug

25

L97

6

1

1

years***r+

Hi

Aug

27 I97I

16

years

FIREWORKS

IN

AUGUST

The

Aug

I

Anniversary

above

is

not

-^

_rnly

₁₄₄

months

ago

but

this

year,

that

date

(weekend)

is

a

planetary

occcurence

that

corresponded

to

the

Jun 16

low

last

year that

produced

a

$100

upmove!

In

other years, for

example

in

L982,

5

years ago (a

good

Gann

timer)

gold

futures

made

a

pullback

low

on

the

exact

date

when

this

planetary

effect

began

and

made

a

running,

gapping

upmove

of

$180,

also

in

August.

Anything

can

happen

this

year as

two

other

planets

are

involved

in

the

same

configuration

which

I

haven t

t

seen before. It could

mean

lots

of

excitement with

limit

up

moves

until

the

24Lh

of

August

when

the

planetary

effect

expires aE

once

for

ALL THREE PLANETS !

Are

ttthe

starstt

telling

us

there

will

be

problems

in

the

Mid

East?

I think

so.

Notice the

Anniversaries

at

the

end

of

Ehe

mnth

that

also

correspond

_to

the

change.

fire

alltilne lor ln

futures

uas

made

on

the

1976

date

so

if

prices

have

August

is

THE

month

in

Pork

Bellies

as you can see. In

previous years

the

Great

Discrepancy between

Aug

&

Feb

contracts offered a great

spreading

opportunity

into the

August

expiration

i.e. selling

Arlg

and buying

Feb

at

around

1700. If

you

put

on

the

spread,

use

a

standard

200

point

stop

from

your

entry

point and let

the

chips

fall

where

Lhey

may. If

youtre

stopped

out,

watch

Febs

for test of

6400

level in first

3

trading

days

of

August.

If

they are

a

breakout,

go with it

on

long

side

until

inportant

dates

Midmonth. Notice

how

the

dates are

bunched;

first two days,

nidmonth

and

last

days

of

month.

9

years

L7

years

L9

years

5

years

16

years

L2

years

2I

years

14

years

11 Years***

15

years

10

years

L2

years

20

years

* * * * tt tt lt

l3

lt

ts

tt tt * *

tt

8

August

1987

DATE

180

DEGREES

180

DEGRBE TURNS FOR AUGUST 1987 COMI'ODITY

FR0[[-t'lin

Hi

CATTLE

Hi

LU},IBER

Maj Lo

WHEAT

Contr

Lo**

CORN

Contr

Lo**

SOYBEANS

Contr

Lo**

BEAN l'tEAL

Min

Hi

Feeder

Cattle

Maj

Lo

Gold

Maj

Lo

Silver

Maj

Lo

Platinum

Maj Lo

Palladiun

Maj Lo Cotton

Contr Lo

Aug

Bellies

Contr

Lo***

CRB flITIRES

AND CASH INDEX

Contr

Lo**

Unleaded

Gas

Hi

COFFEE

Contr Lo

Hogs

Contr

Lo**

Lt

Crude

0i1

Contr

Lo**

Heating

0i1

Hi

SUGAR F'I]LL MOON

NEW MOON, MondaY

0f

the

many

futures

groups

that

have

no listings this

month,

financials

and

stock Indices

had

very

strong

trends in

February that

were continuations

of

earlier

turn

points

Listings for first

days

of

September

are

included

to

make

sure

you have

them

in

case

GA

is late.

The Stock

}larket

has

an astro date for

_$S!,

I that

has

been

present

at major

turns

in

the

past

and

that signature could also affect

the

energy futures

in

a big

way

r

so

be

ready

for it.

Ir**ttrT*******tglr*

Aug Aug

Aug

L7

Aug

L7

Aug

L7

Aug

L7

Aug

18

Aug

18

Aug

18

Aug

18

Aug

19

Aug

19

Aug

19 Aug Aug Aug Aug sep sep sep August August

4rr

5rr

25 25 26 29 2 2 2 n ll il ll ll It It il ll n il It il ll ll ll ll lt

This

month

is

a

strange

1ist.

There

are few

groups

and

theytre

all

bunched

within 3

daYs

in the third

week

of

August. This

tells

us

that

week

is

key

&

highlighted during the month.

August

also has several multiple

planetary

angles that can affect all

the

commodities

(separate

and

apart

from

what

was discussed solelY for the

Gold

market).

The

l9ttr is

one

of

the

dates,

with the

others

falling

on

that

weekend

prior to the

new

moon.

Notice

every

commodity

in the

CRB

Index

has

a

turn

during that 3rd

week

and

Grains

are

coming

from

contract

lows

that

were

major

on weekly and monthlY

charts.

Your

response

to the

GAI{N

AI{GLES FUTURES

n I{D

has

been

so

terrif ic

that

the Pool will

probably

close

by

the

end

of

August.

If

you do have an

interest

in

it,

please

let

us

know

quickly

so

you

can receive the 0ffering

Memorandum. Minimum

investment

$15r000.

BTTLLETIN BOARD

The

Gann

Seminar

Season

ended

on

a

high

note

with a great

New

York

group

in

July.

My

thanks

to

everyone

who

attended

all

three

Seminars

in

Chicago,

LA

and

the

Big

Apple.

ILts

always

a

stimulating

&

gratifying

experience

for

me

to

get

out

there

and meet

all of

you

personally.

*

.t+ _t+

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GANN ANGLES i3 pobtilhed monthty and ia mada ev.rlablg lo lubacribors lor inloflnelioa purpoao3 only. lnlormstion ia obtaingd hom aources deom6d to be rolieble but

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;; r";ccuracy or comptere-niis.'njiceri ,ring ilr. intormalion contaimd hotein ata sobly rerpon3ible lor lhoir oltn actiona No r€pres6nlalion can ieteireJro treretrr. fne editor, associaies, cireciors, or e.p'toyees and clients may purchase and/or sell commoditi€s relerred lo h'rain

voLUME

Xnt

rssuE 11

PHYLL

IS

KAH

_N

,

_ED

ITO

R

JULY 1997

THE

POSITION TRADER'S

NEWSLETTER

$TOCKTAR'GT HIGH1TGHTS

June was a powerful month ln the stock market, making

new highs for 11 trading days lrom June 6 to June 20, an

excitlng new record for the books. Many pros and the public

allke are convlnced that this

ls

now normal stock market

behavior and will (and should) contlnue lndelinitely lnto the luture. But those ol us who were trading in 1973 remember

what it was like to have a Dow 5O% retracement in less than

two years. Not pretty.

When a Stock Market as strong as this prevalls, many ol

our trled and true lndlcators fall us as well as several Gann technlques that have been lnfallible until

recently.

But desplte all the

fallures,

momentum oscillators stlll work.

l.Jslng 14 and 2E trading day slow stochastics, when they

reach up into the 9O's and down lnto single diglts, they stlll

remaln unbeatable. And so it was that during the week ending

June 20th that we had several days readlngs at the 96 & 94 levets on the two osclllators, so lt was no surprlse that we had

a

Monday close down 194 polnts on the

Dow.

Yes, we

recovered lrom it, but be warned that lt's the llrst of many

such record down days ahead ol us ln 1997.

It's been diflicult to almost impossible to identify thetimlng for THE top but l'm still trying. lf we have not made top by the end of June, there are some powerhouse dates ln July. Let's

look at the Anniversarles:

DOW JONES IN JULY

Ht

JULY

21986 -- 11 YEARS***

Hl JULY

6 1988

--

9

Yf[p5****

LO

JULY

7

1993

4 YEARS**** LO

JULY

S

1932

67 YEARS**

Hl

JULY 16 1957

_-

40

ff,[ps*****

LO JULY 16 1996

_-

1 YEAR**"

HI

JULY 17

1985

12 YEARS***

HI

JULY 17 1990

_-

7 YEARS***** LO JULY 25

1984

13 YEARS****

Hl

JULY 31

1992

5

fl[s15*****

Notice flrst that out

ol

10 dates, 6 were highs & we have been in a malor bull market lor 23 years so that's noteworthy.

Also notice that last year's low of the year was on Jul 16 as

well as this year's 40 year Annlversary, plus 2 hlghs ln 1985

and 1990 on July 17. Very compelllng dates for week'endlng July 18. We may have already aeen the high by the time you recelve this but ll we should make new

hlghs,

Lagt month I gave you a Dow price prolectlon for a potential high al772O whlch was exceeded in June by more than 20O points. We

trled.

lt was a2Ox multiple of the 386 hlgh lrom 1929. lf, blg

lf,

we make new hlghs ln July, let's shoot lor El(Xl whlch ls Flbonaccl 21 tlmes 386 (actually El06) plus the Square ol 90,

whlch Gann hlmself would crow about. Buy Dec putslll

Here are MAJOR breakpoint prices: Dow close below 7397:

Cash S&P close below SE!; Sep97 S&P50O close below E6f:

OEX close below

&It

Nasdaq close below 13&* Dow Utlllty close below ZE2; Dow Transports close below

2tr57.

Any

closes below these key levels are SELL SIGNALS. Utilities

and Transports are closest. TRADING STRATEGY: I urge you

not to buy nearby puts but to go all the way to Dec97 so you give yourself max TIME

for

your

money.

Yes, they are

overpriced but with the momentum in thls market you will be

repald handsomely for the extra premium. Remember that Gann's most important'prlnciple is that price is a lunction of

TIME, so buy yoursell l'lME; price will come to you ln the next

:"Hln:****

**** **** ** ** ** *

FOCUS ON RNANCIALS!

Whlle the Stock Market has been breaklng records on the upslde, Bonds have reluctantly sustalned

a

mild rally that

began ln April at the same tlme as the Stock Market low.

While in a rising trend, the price actlon has been llke dragging

a tree up a steep mountaln. Bonds made their last hlgh in Feb

'97 and have not been able to regain that

high.

All of this is

ablt ol dela vu lrom the 1987 market where Bonds topped in

early March as the Stock Market went wild on the upside until August. But thls tlme around, at least so far, Bonds have not

been as weak as they were in 'E7.

But that can change quickly too as thls ls also the 4th year

slnce the Bonds made malor hlgh ln Oct '93 and the 4th year

from the high lollowlng a 12 year

bull

market cycle'should'

puBl-tSHED _{By cANNwoRLD.} tNc., 4$i Trinity Are- Suilc A Scddc' Cr 9J9li5 nery FAX 40t{!llL9f 12

REPRODUCTION tN WHOLE OR PART NOT PERMITTED WITHOUT PUBLISHER'S PRIOR wRITTEN CONSENT. phonc 4{FJ)}2(m

e-mail:

gannangles@redshift'com

2

JULY 1997

be a heavy down year to complete the down phase. so far it has not lollowed the expected scenarlo but could change as

we move into the last 2 quartere ol thls year.

Right now we should focus

on

posltlonlng

lor

the blg

breakdown.

on

June

25,

hourly bonds closed below their breakpoint, giving an hourly sell signal. But

the

key level ie

a eell slgnal on the daily chart. A close ln sep Tbonds below

11O.1O

will

be a malor sell signal. At that tlme you can go

short lutures and/or buy Dec Bond puts

lor

a positlon hold lnto Oct/Nov.

ANNIVERSARY DATES FOR

TBONDS & DOW BONTXi IN JULY

LO

JULY

2

1984

--

13 YEARS**** LO

JULY

7

1995

-.

2 YEARS*** LO JULY 11

1994

3 YEARS*T* LO JULY 13

1978

19 YEARS*T*

Hl

JULY 14

1934

63 YEARST***

Hl

JULY 18

1933

64

ff[p5****

There are not many malor turns ln July suggesting that the

June hlghs may hold but use the dates to coincide with our

sli:xT.ll.':.:""::r"131T1...

SOYBEAN UPDATE

The contlnulng weakness

ln the

new dlstant Soybean contracts as they come on the board ls both disturbing and

Bearlsh. They have brought on both July 98 and July 99 contracts, (to whlch Gann traders pay attentlon) wlth their

current closlng prlces 668 and 655 respectlvely. The Nor€E

contract

is

637.

20

cents below

the

'97

contract.

With

wldespread announcements

on

nightly TV newa about the expected etfects

of

a new El Nino forming worldwide, lt's strange that these Bearish relatlonships

still

prevall in the

Soybean complex. Or is it?

On my weekly July contlnuatlon chart,

I

have plotted the July98 contract ln red below the current July whlch is holding

above

8fl)

and expires on the

21st.

This week the Jul'98

contract broke below 66E the Nov 12 '96 key

low.

The Jul99 contract at 655 ls _lust that much lower. After July 21, Jul '98

wlll be the lead conlract on thls chart, looklng for the next malor support level on the downslde whlch goes back to

Feb/May'

95 at

560/570.

Gann's genius

wlth

these

continuatlon charts

ol

the same contract month, year atter

year, can be trusted to show the truth of the market.

ANNIVERSARY DATES FOR

SOYBEANS IN JULY

HI

JUL

HI

JUL

HI

JUL

HI

JUL

HI

JUL LO JUL LO JUL

2

1990

--

7 YEARS****

6

1gE9

--

E

lf4p5***

7

1972

_-

25 YEARS****

9

1976

--

21 YEARS**i

12

1985

_-

12 YEARS*****

12

1996

--

2 YEARS*I*

13

1973 ..24 YEARS*****

Hl

JUL 13

1981

_-

16 YEARS**'

Hl

JUL 15

1986

_-

11 YEARS****

HI

JUL 19

1993

--

4 YEARS**" LO JUL

21

1978

--

19 YEARS** LO JUL

23

1964

--

33 YEARS*** LO JUL

26

1969

_-

28 YEARS**** LO JUL

26

1988

-- I

YEARS****

It'g

a

very long llst but you can use

lt

to

back up the

GANNTIMER reversals. Use any rally during the month to get short for a run down to the weekly support levels glven above.

July and August are both good months for declines that make maior lows so don't be afraid to short into strength. Right now Dec Wheat looks good for

a

rally back

to

movlng average

reslstance at 383. Use GANNTIMERS to enter. Wheat daily oscillators at 8 & 9, so don't mlss

lt.

Plus July is seasonal low

after long decllne. Call the Hotllne ll you need help.

**********************************

PRECNOUS ilETAI.JS UPDATE

It's doubtful that the preclous metals will bottom until the

stock market tops so there's nothing yet that we can do in

these markets except wait lor them to come to life. Silver has

been tradlng sldeways, popplng

up

over daily

moving

averages & then dropping back agaln but looking like it may

be ready any day. Platlnum had the quick runup, then down

but trying on the upslde again. Gold is _lust maklng new lows

by a dollar or two but Homeetake Minlng has held the April

low, dlverglng bullishly from the metal

itself. we

need to conilnue

to

be on the

sidellnes

untll

we

have somo

confirmatlons, so lust be Patlent-ANNIVERSARY DATES FOR GOLD

IN JULY LO

JULY

2

1985

_-

12 YEARS***** LO

JULY

5

1974

_-

23 YEARS"**

HI JULY

6

1973

_-

24 YEARS**** LO JULY

11

1975

--

22 YEARS****

Hl

JULY 21 1988

_{- I}

YEARS****

Hl

JULY 24 1992

-

5 YEARS****

It's a short list lor thls month but you can use it to reinforce

GANNTIMER reversals. we did make a low last year in Gold ln June, so perhaps the new lows last month can generate

some prlce action. Othenrlse, stand aside.

**********************l*********

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