The Value Line Arithmetic (VLE) range of 2002-2007 shows some interesting angles within the Gann fan. Price does not look stable at this point and I would not be surprised to see it move to the 1×8 angle which is about 18% below yesterday’s close. I am not predicting this. But there is nothing bullish in the recent price action to suggest a final low is in. This could change quickly and it is better to read what is happening versus predicting what will happen.
On the timing side, the fast move down started exactly at the 25% time cycle. Another time that looks interesting is 14Feb09 as the intersection of three angles. Price tends to change direction or accelerate when these angles cross (or when a sloped angle crosses a vertical/horizontal angle).
The range of the 2007-2008 shows 25% of the range retraced quickly. That move is now being worked off. While price action is slightly bullish, it won’t take much to break below the recent low.
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Tags: Gann Angle Fan · Slope · Value Line Arithmetic Index (VLE)6 Comments
Market seems to be predicting the end of the world as we know it. The BKX is lower right now than the 10/24 intraday low. No place to hide right now, although I will consider gold near $650 or silver closer to $8.
we finally agree on final low date! hooray!
Andy, had my short lived “E” wave rally after hours, very sad, but We all new the real scenerio was down, and down we went today.
Fork, been playing with your idea, really like it. I spread it out on all support sides top and bottom really keeps things in line, do you work off of angles? certain degree settings?
Fred I agree gold goes to $600-$650, I look at GLD alot and I have it going to $63.
Andy, thanks again, nice work. we break the lows guys and gals, they won’t say it on T.V but we will teeter on Depression , and we all know that if we break it this soon (time wise) then it will only get worse, and jobs will only get worse, recovery’s always take more jobs, mostly white collar. Just a few things to think about when it comes down to it. Prepare for the worst.
Libby, one thing actually puzzles me. I see your posts and you are very knowledgeable and have been calling the shots right. I am scared of a depression, or a strong recession, or ‘the worst’ like you mention. I guess I am wondering how one could be really that cheerful when he sees what you seem to be seeing?
Taleb has mentioned in a couple of interviews that he really hopes that he is wrong with what he thinks will happen, and that he wakes up at night hoping that he is wrong (this is the guy that wrote ‘the black swan’)…
Please don’t take this in one way or the other, but I am just a bit puzzled by it, and I would like to see some light at the end of the tunnel (and it not being the train coming from there straight into me)…
Kurt – I can’t speak for Libby, but the economy/markets do not get me down. We have a chance to play it on for the downside which makes the market whatever you want it to be. As for the economy, I cannot change it. I try to set myself up to get by in the worst. But my assumption is that I will do much better being cheerful than fearful. It is what it is. What will be will be. The future IS ours to see… just not change. Roll with it. Worst it can do is kill me and I’m going to die eventually anyway. Why not die with a smile on my face….
work off of angles? certain degree settings?
not yet but I was thinking about it