W.D. Gann Cycle Pivot & Bearish Short Term Seasonality
W.D. Gann Cycle Pivot & Bearish Short Term Seasonality. As a premium subscriber we alerted our premium subscribers turn bullish on the stock market and buy the SPY ETF. Since then, we’ve seen a significant surge in the SPY ETF with it rising by a remarkable 19.5% since the October lows. However as of July 29, 2023 we believe that it is prudent to take some profits off the table. In this blog post, we’ll talk about the various factors that have led us to make this decision.
The first factor we want to address is the W.D. Gann Cycle Pivot. According to our technical analysis, the next pivot is due on around 8-3 to 8-5 which could result in increased volatility in the coming weeks. This can often lead to a sharp selloff in the equity markets because we are up significantly going into this pivot prompting investors to reconsider their stock positions.
What You Need to Know About the Upcoming W.D. Gann Cycle Pivot Date
For traders and investors who follow W.D. Gann's trading strategies, the upcoming cycle pivot date holds significant importance. According to Gann's principles, cyclical time cycles are a vital part of the market's movements. The cycle pivot dates can be used to predict the price movements in the market. In this blog post, we will discuss everything traders and investors need to know about the upcoming W.D. Gann cycle pivot date.
What is a cycle pivot date?
A cycle pivot date is a specific date when the market experiences significant changes in price movements. According to Gann's principles, cyclical time is a crucial factor in the market's movements, and the cycle pivot dates can be used to predict the trend changes. These pivot dates are based on past market movements and pattern analysis.
How can traders use cycle pivot dates to make better trading decisions?
Traders can use cycle pivot dates to identify potential trend changes and adjust their trading strategies accordingly. Gann believed that markets move in a cyclical pattern, and traders who understand these patterns can make better trading decisions. For example, if the market is in an uptrend, and the cycle pivot date is approaching, traders can anticipate a selling pressure, and take profit or a short position beforehand.
How to use cycle pivot dates in conjunction with other technical analysis tools?
Traders should not rely solely on cycle pivot dates to make trading decisions. Instead, they should use these dates in conjunction with other technical analysis tools like moving averages, trend lines, and support and resistance levels. Technical analysis helps traders to confirm market trends and identify potential entry and exit points. On July 28th the SPY ETF pierced the double top at 457.83 back in April 4th of 2022. This double top pattern indicates that the SPY ETF could potentially reach resistance at this level in the short term.
The upcoming W.D. Gann cycle pivot date holds significance for traders and investors who follow Gann's trading strategies. These cycle pivot dates can be used to predict potential trend changes in the market. Traders should use cycle pivot dates in conjunction with other technical analysis tools and proper risk management techniques. By understanding these principles, traders can make better trading decisions and enhance their profitability.
Bearish Short Term Seasonality and Overly Bullish Sentiment: What it Means for the Next 2-3 Months
Historically, the months of August through October have shown a bearish short term seasonality, meaning that stock prices tend to fall in this period. This year, this bearish seasonality should coincide with overly bullish sentiment in the market, which could further push stock prices down.
The Overly Bullish Sentiment
According to the latest survey by the American Association of Individual Investors (AAII), bullish sentiment among investors rose to 42.9% in the last week of July, reaching the highest level since April 2021. This level of bullish sentiment is despite the ongoing inflation concerns, which should temper bullish sentiment. An overly bullish sentiment is typically viewed as a contrarian indicator, as it indicates that investors are too optimistic about the market's future and may have already priced in the positive news.
What Does it Mean for Investors?
The current market conditions highlight the need for investor caution and prudence. The stock market is inherently unpredictable, and the current conditions increase the risk level for investors and traders. Therefore, investors need to be mindful of this when making investment decisions. Investors could consider short-term strategies such as hedging strategies or having cash positions to limit losses in the event of a market downturn.
How to Navigating the Current Market Conditions: