The verdict is in, but I could be wrong. As you knowm, I analyze so many calculations that it’s almost to the point of being robotic. But there is a human element to the markets as well. Really? Here’s the bottom line. The stock market is not behaving well. Markets don’t automatically reveal themselves. It's like poker, they give you certain "tells." With humans, when relationships aren’t going well, you look for ways to salvage. Forgiveness is important to overcoming problems when it comes to people.
Federal Reserve Chairman Jerome Powell went to Wall Street and was not happy enough to enact whatever rate hikes the Fed had planned for this year, and markets were told to count on three more in 2019. Nobody knows what tomorrow or next month will bring, let alone next year. I came away thinking this guy is trying to pop the stock market bubble.
Here we are at the most important trading week of the entire year. You’ll never hear about this on the business channels, but Gann designated the March change of season as the most pivotal cycle point for markets of the entire year. Longtime readers of this column know I’ve come up with all kinds of names for it through the years.
Markets had a 12% correction and that appears to be it. For now. The Dow is in the process of violating a perfect setup where it could’ve jumped off the ledge. Here’s a lesson I learned about 14 years ago. Unlike many who got their training in the old Internet bubble go-go days, I cut my teeth in the bear that followed.
This is the week we’ve all been waiting for. You may not have realized it but it’s true. On Marcn 15 we have a trifecta of events. Front and center is Fed Chair Janet Yellen who will raise rates because the change of season Fed meetings are always accompanied by the big press conference. Some think it will be 50 basis points. That’s very unlikely. Here’s why. On the same day is the Dutch elections, which many believe will push Europe closer to the dissolution of the EU, an event the globalists won’t appreciate.
Last week I showed you the incredible square out on the DAX for the Brexit high. Late Monday many charts formed a new square out low, which propelled markets back up. Probably the best example I have for you is the S&P 500, which turned back up at the 1991 handle in 91 hours for the move.
While the UK and the rest of the world was trying to figure out who really won the vote on Thursday night, I can tell you beyond a shadow of a doubt the real winner was WD Gann. Oh yeah, I wouldn’t kid you about something like this.