ANCHOR OK… But Greg, I gotta ask. Where are you going with all this? GREG On June 6, 2019, I applied my Gann strategy to the VanEck Gold Miners ETF and noticed this… See the blue line?
Along the way – the stock “rhymed” with itself … ANCHOR What do you mean by that? GREG
On October 29, 2020… November 15, 2020… and February 1, 2021… the stock landed along the same 45-degree trajectory. Just a simple way of measuring the stock’s momentum. ANCHOR OK… and so what? GREG
The day I looked at gold… this line was exactly 61.8% higher than the difference between the recent high and the recent low. ANCHOR 61.8%... from the Fibonacci sequence… GREG Correct. When something moves 61.8% away from its previous position, it’s almost guaranteed to create something that matches 61.8%. We see it throughout nature… And even in herd behavior in the stock market. Remember, Gann loves symmetry. He loves it when the market “rhymes” with itself…
Well… In March 2021, all of a sudden the stock fell out of that trajectory.
So by applying Gann strategy, I could determine the exact dates Caterpillar would soon hit a major turning point upward,
to touch it again. March 25 to 28. Take a look...
This is the exact chart I posted on March 25. ANCHOR OK. And I assume you found a trading play for Caterpillar?
GREG In this case – no. Caterpillar simply gave me the EXACT DATES something big was about to happen in the broad market. My next step was to look at the market itself. The Nasdaq. One look and I was blown away… Can you see it? ANCHOR Honestly? I don’t see anything here… GREG Most people don’t. But look closer… On March 25, 2021 – a “Gann time factor,” as we call it – the Nasdaq index rhymed with itself. It rose and fell by EXACTLY the same amount two weeks in a row… just like the example I showed you earlier with the small- cap index.
In this case, I knew the price of gold could soon rise to hit exactly that level… So I found a trading play to take advantage of precisely that move. Sure enough, the math and the price history never lie. You could have made a 345% gain in 19 days if you’d heard me out… which is 4 times your money in less than a month. ANCHOR That’s gotta be a fluke… How often do you actually see this Fibonacci sequence appear in the market? GREG
All the time, Tom. Let me show you something…
From the market bottom in March 2020 through March 2021, Caterpillar went almost straight up.
ANCHOR OK. And what did all of that mean?
Remember: Caterpillar is a classic Gann stock.
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