Tuesday, June 30th, 2009 Gann Presentation for Bloomberg Catapult Research by Jim Smith
Dow Jones Industrials--Monthly Gann Cycles into High I showed this same chart on 8/13/07 at Bloomberg MTA seminar and warned of an October Surprise and a Stock Market Crash
Dow Jones Industrials (INDU) YEARLY CHART Yearly Gann Support Line at 7248 (red arrow)
Dow Jones Industrials Index (INDU) --Monthly Chart The blue 2x1 line offers resistance at 8822 in July (red arrow)
S&P 500 Index (SPX) -- Quarterly Gann Chart Green 3x1 line offers resistance at 904 in Q3
S&P 500 Index (Pink 1x4 drawn up from 1982 Low) The pink 1x4 line offers support at 748 in July. A close below 904 signals a slide to 864 or 748 (red arrow)
S&P Quarterly Gann Line Resistance at 944 in Q3 A close above 944 in Q3 should be viewed as a breakout
S&P Weekly Gann Line at 944 this week If it happens, a close above 944 this week is a breakout
S&P 500 Index: Square of 9 resistance at 1011 Square of 9 projections at 773, 888, & 1011 (red arrow)
S&P Square of 9 targets From 830 to 949 is 360 degrees and from 888 to 1011 is 360 degrees
S&P 500 Index with 50% Retracement at 1009 50% retracements are always important to watch
Volatility Index (VIX) with Fibonacci Time Zones & CycleFinder Possible turn on July 24th based on Bloomberg CycleFinder
10-Year Note Futures (TYU9) September contract The Low for bonds came just over 365 days from prior Low
10-Year Note Futures (TYU9) June 13th 2007 Low; June 13th 2008 Low; June 11th 2009 Low
10-Year Note Futures (TYU9) June 16th: 90 & 180 days from High; just over 365 days from Low
10-Year Note Futures (TYU9) --Monthly Cycles A turn in June every year! (72, 60, 48, 36, 24, & 12)
10-Year Note Futures (TYU9) September contract Key Support at 112-20 on the Quarterly Chart
As long as TYU9 holds above the quarterly gann line at 112-20 in Q3, the September contract of the 10-Year Futures remains in an uptrend. The Time & Price setup suggested a turn in June. If TYU9 dips below 112-20, then we will be looking for a correction, but it seems more probable that bonds will rally given the fact that TYU9 sold off into Mid-June. The Low for TYU9 came on June 11th and we were expecting a low around June 13th to 16th. This is an acceptable range of error. So even though China warns on almost a daily basis that they want an alternative to the Dollar standard and even though many countries want to diversify away from US bonds, the Gann cycles accurately predicted a turn higher for bonds. TIME and PRICE. The Gann cycles tell you when to expect a Turn and the Gann Line in this case tells us the support level that must hold (112-20) if TYU9 is to continue the turn higher. Most technicians only look at the X-Axis (PRICE) and forget about the Y-Axis (TIME). Gann looked at both Time and Price to get a setup for his trades. You should too.
TYU9 Daily Chart on Bloomberg If TYU9 closes above 116-28 it may rally to 117-30+
TYU9: 50% mark of larger swing at 119-09 If TYU9 closes above 200-DMA, look for move to 119-09
Dollar Index (DXY) Daily Chart on Bloomberg Overlapping support or resistance makes it stronger
Dollar Index (DXY) -- Square of 9 Chart Square of 9 resistance at 80.00; 83.06; & 89.24 (red arrow) Gann Cycle turn possible on July 15th (1 yr from Low)
Dollar Index: 90 & 45 months from High in August! Monthly Gann Line at 77.31 in July (red arrow)
Dollar Index Daily Chart with 144, 90, 60, & 30-day cycles The cluster of trading day cycles due in Mid-July call for a turn
Gold Futures (GCQ9) August contract Key support at 935 in June rises to 967 in July (red arrow)
Gold Futures (GCQ9) August contract The Zero Line at 792 is Major Support for GCQ9 in July
Gold Futures (GCQ9) Quarterly Gann Chart A turn every 45 quarters? -If so, will Q2 2010 be a Low or a High?
Nymex Crude Futures (CLU9) September contract Green 3x1 Zero Line offers support at 72.00 in Q3 (red arrow)
Nymex Crude Futures (CLU9) September contract Half the High of 147.20 on CLU9 lies at 72.60 (dotted red line).
Nymex Crude Futures (CLU9) September contract One Year Anniversary of High comes due on July 14th
Nat Gas Futures (CLU9) September contract Nat Gas may turn up in sync with the 1-year anniversary of High
Divide the Price of Oil by Nat Gas Ratio of Oil to Nat Gas has never been this extreme! Sell 1 bbl of oil for 18 Mbtu of Nat Gas
Nasdaq 100 Index (NDX) --Monthly Chart If the NDX fails to close above 1552 as we move into the month of July, it becomes vulnerable to a sharp pullback
Nasdaq 100 Index Daily Chart--Channel line support giving way! The 50% retracement mark at 1496 stops the rally
Nasdaq 100 Index (NDX) with 50% retracement A close below 1464 today will send the NDX down to 1343
Nasdaq 100 Index (NDX) --Quarterly Gann Chart Quarterly Gann Line Support starts at 1343 in Q3 (red arrow)
Nasdaq 100 Index (NDX) Weekly Gann Chart A close below 1464 this week would suggest a false breakout and a fast move down to 1392, 1343, or 1276
Nasdaq 100 Index (NDX) Square of 9 Chart High of June 5th 2008 and Lower High around June 5th 2009
Nasdaq 100 Index (NDX) -- Quarterly Gann Chart Worst-case: A plunge back to the 1x2 Zero Line at 1216
Nasdaq 100 Index (NDX) Monthly Gann Chart 50% retracement of swing at 1276 and 1x1 line at 1274 (red arrow)
Thank you for attending this Gann Seminar