GML - Where to from Here? - 29th December 2011
The start of something Exceptional - By Fred Stafford
Every Gann Management subscriber has the tools in his hands to profit handsomely from an imminent special opportunity. But this will only be enjoyed by those who manage to cope with the undoubted emotional challengers to be overcome on this exhilarating journey. The first obstacle to overcome is the emotional challenge to overcome the certainty expressed by ‘experts’ and succumbing to the pressures of the Financial Services industry. This leads to the disaster of trusting your hard won to an industry whose participants only aim is to acquire personal wealth with little regard to where that wealth was extracted… from the investor.
As always I will not be assessing the prospects for 2012 until the end of January when the conclusions from the January Barometer will be available. However, there are significant pointers suggesting an unusual twelve months ahead.
The informed buyers index continues to collapse against a rising index similar to the action prior to the 2008 fall! The advance decline line supports the bearish view if the informed buyers with far more shares falling rather than rising over the past twelve months. Furthermore the FTSE 100 and the Dow Jones industrials are outperforming the wider indices such as the S & P 500 and the FTSE 250. This is always the case at the tops of markets as institutions ditch the more liquid shares as and when the opportunity arises.
Such an initial bearish conclusion is further supported by my recent analysis of the world markets where I cannot find a single market worthy of consideration as a buy yet there are a number of western markets looking heavily vulnerable especially the UK; the US and Europe.
This initial general analysis of the stock markets put us on guard to take out short positions if and when signals are triggered. However, constant vigilance is necessary as we now stand at important upside resistance which if broken on the upside could force us to reverse our current bearish view of the stock markets.
The other alternative markets will be discussed individually throughout January at the end of which we should have a clearer view of the possibilities for 2012.
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