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Gann Management Ltd- Celebrating 28 years of
continued success!
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Telephone 0161 285 4488 | Fax 0161 494 6432 | Email
info@gann.co.uk |
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11th December
2006 |
Market Breakout! - Exotics Explode!
Over the past few months we have taken a cautious stance on
equities as the markets rose to heavy upside resistance. However, we emphasised
in our seminars and workshops that support and resistance levels are not
necessarily buy or sell signals but levels of decision. Our view had been that
markets could fall from these levels as the informed buyers were selling.
However, in our last ‘WTFH’ it was necessary to point out that
traders should change their minds and then go with the market following the
maxim ‘Don’t tell the market what it should do.
Let the
market tell you what to do’ The result has been a remarkable number of
opportunities opening up in the more exotic of countries following our remark
last month that there were 18 markets attempting to breakout.
Our
portfolio has held or is now holding the following:-
BELGIUM - BRAZIL -
CHINA - LATIN AMERICA - MALAYSIA - MEXICO - SINGAPORE - HONG KONG - SPAIN.
Gold & Commodities contribute.
A
third of our portfolio has been in Gold Mining shares, with big rises for ASA,
Goldcorp and to a lesser extent Newmont Mining. In the commodity arena
considerable progress has be made. The strength of our universal coverage is
clearly demonstrated over the last few months by providing profits from a wide
area of opportunity. Equally importantly our weekly analysis considerably
reduces risks through the ability to shift quickly from dangerous areas into
more profitable opportunities.
A warning for 2007 - Time
for vigilance.
The informed buyers are selling,
selling & selling!
The FTSE 100 traded sideways throughout
the early part of 2000 with investors feeling rich and secure with their
illusion of wealth from holding pieces of paper called share certificates. Many
times during this period I was scorned by seminar delegates for only having
secured profits of over 30%. They gleefully trumpeted that they had made much,
much more.
I asked them where they now had their unfounded wealth and
found that they still had the shares. I informed them that they had made no
profits at all. This was a truth and I had my foot in the stirrup to make a
hasty retreat for few are prepared to accept reality. Very few if any returned
to learn the facts of the markets. I know when the informed buyers sell whilst
the public buy in a frenzy the end is nigh.
The informed
buyers warning in 2000.
The charts above show that the FTSE 100 rose 1000 points in the
Autumn of 1999 whilst the informed buyers were selling into the rise as they
did again in February & March 2000. This is a major warning that the market
was in dangerous territory and due for a major correction. We went into cash
which led to our advice to subscribers to sell their shares and then
‘Short’ shares in the spread betting arena & extract our pension
clients from all danger which resulted in a sensational performance for all
when others were suffering after their illusions that they were accomplished
investors.
The informed buyers warning now.
The current
charts show that since last May the FTSE 100 has risen whilst the informed
buyers have sold into this rise. This reflects the 1999 pattern for the first
time since 1999 which forecast the 2000/2001 crash. Having said that, we are
100% fully invested but we are using tight exit points which will be triggered
instantly on any kind of weakness. We have no illiquid holdings caused by lack
of volume or holdings which are subject to the horrors of Institutional policy
and contract conditions. We have learned recently that an Institution is
already deducting 6% from any withdrawal over £5,000...so beware of these
people who believe that your money is there’s especially in the property
area.
Will 2001 opportunities repeat?
Following our Informed buyer warning in late 1999 we prepared for a
downward move in the equity markets and shifted our attention to protecting our
clients personal equity holdings and moving into spread betting and
C.F.D’s to take advantage of the anticipated correction or collapse. The
market meandered throughout 2000 and then commenced its decent in late 2000.
Throughout 2001 we gave our subscribes advice to sell no less than 318
shares which they held with 75% of these falling no less than 50% from the date
of the sale. A massive 27% fell between 91% and 100%. The job was finished in
2002 with a further 124 sell signals with 45% showing falls from the sell
signals of over 50%. We are extremely proud of this performance and know if
such a situation were to repeat our daily Gann analysis will produce the same
significant performance. Ask the office about our portfolio protection service
if you wish to protect your investments. A full list of all our sell signals is
available upon request.
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