My Latest Gann Charts for SPY

Everyone is waiting for the Fed tomorrow.

https://askeysworld.net/MM-State.html

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Andy,

Kudos on that Gann chart. I didn’t know any practitioners of that arcane art still exited.

Arindam

2 Likes

Andy,

For the sake of discussion, let me play devil’s advocate and argue that it’s “fundamentals” that will determine US stock prices, for which cap-weighted, tech-heavy SPY isn’t the best of proxies, rather than the “technicals” that can be inferred from price-volume charts.

Raising interest-rates by another 75 beeps is a political gesture, not a genuine effort to dampen ‘inflation’. Meanwhile, much of the world is dedollarizing. That’s what will burst the debt-driven bubble we live in. When the Fed-Treasury cartel can’t print, our dear Congress can’t spend, and the scam ends.

Yeah, right now the $US dollar --as the least dirty shirt in the laundry basket of fiat currencies-- is rallying. But plot it against a commodities-based currency like the Ruble. Whoops. Biden lost that war, just as he and his handlers are making a mess of everything else.

Arindam

2 Likes

There are plenty I have found. Most from outside the US. Everyone has their own “flavor” of Gann so I stick to my version developed over 20+ years.

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Sure. Some form of “fundamentals” determine stock prices. Although, most fundamental reports have been skewed to influence investors to act in a specific way (by large institutions including the government).

I watch what “is” happening using my Gannish charts. If some great fundamental play appears it will show up in the charts. It can do nothing but show up in the charts. If a news theme doesn’t end up in the charts (or charts go the other way) then that news theme is noise to the true signal.

A strong/weak USD makes no difference to me (unless I want to trade currencies or gold). The affects of the USD and debt show up in charts of stocks.

I use the SPY and SPX to chart the market because it includes price movements (USD flows) into and out of the 500 largest stocks in the US markets.

I also track ETFs of sectors and indices to see where money is flowing. I rarely trade individual stocks as they can possibly open down 50%. ETFs of indices are limited to opening down less then 10% in the worst of times.

https://askeysworld.net/images/BreadthETFs.png

"Most [Gann chartists are] from outside the US.

Andy,

That’s a shrewd comment that rings true. Most US chartists --and especially the ones that get featured at places like CNBC-- are clueless. Yeah, they can draw lots of fancy lines. But their charts provide entertainment, not useful info.

Arindam

2 Likes

Andy,

The relationships between ‘technicals’ and ‘fundamentals’ aren’t simple or obvious. But Graham’s insight is useful. “In the short term, the market is a voting machine. In the long term, a weighing machine.” Also, Soros’ insight. “Technicals can become a fundamental.”

I never messed with Gann charting, nor Elliot Wave. Just way too complicated. But I’m a fan a Candle Pattern Analysis.

Arindam

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Gann range squares are easy. The equation of the the current markets is captured in the range for a high to low (or low to high). Measure the next move(s) against this equation (the diagonal line of the range).