When panic, panic first
…that’s wise advice, I think. Certainly our thoughts are with the people who died during the last weeks and days, but while I’m writing these lines, on Sunday morning here in Germany, my thoughts are also circling around the future of my family and about the way of getting hold of information in order to estimate and cope with our future.
When panic, panic first: At exchange opening we, i.e. the members of our team, will cover all our positions in the stock market, no matter whether they’re long or short, because for ethical reasons we can’t speculate on the harm of other people. For the time being, I myself will keep my long positions in gold and silver observing and then, depending on the atmosphere and situation, I’ll keep or cover… Those positions were and they go on being the reinsurance of my family, precisely designed for such serious situations as the one which is threatening the humanity now.
On Monday I’ll go to the pharmacy acquiring some iodine and then some groceries and a lot of water. Additionally I will withdraw some cash. I’m NOT going to trust the politicians and their statements because they don’t know what’s going to happen. From personal experience with Chernobyl I learned that the advice or the instructions of the government authorities and the affiliated media come mostly late and they are often wrong; and a lot of information is being concealed to avoid mass panic.
Our governments are not better prepared and trained for such serious events than you are and I am. I trust the internet with its many, many independent information sources and experts.
On the financial systems, the currencies, the stock markets, the COMEX, the internet connections, foods, fuel, iodine, water and other things: Everybody has to observe for himself and to prick up his ears. We’ll have to assess how long things are still going to work or to be available, respectively. Everybody will have to decide for himself whether or not panic is on the agenda.
Please don’t get me wrong: I don’t want to paint a gloomy picture. Probably, very probably we’ll come through all that somehow – with hollows, abrasions and some blood loss. And sooner or later everything will keep on being as it is. Most likely next week another issue of GUNNER24 Forecasts will be published. And I hope that there won’t be millions and millions of people radioactively contaminated, and probably even the Japanese population will sort of overcome all that relatively well… but please trust your common sense more than you trust the official authorities, for those will NEVER CALL PANIC even though it’s necessary. Observe the situation for yourself, get the information of your own and make your own important decisions.
Here are the setups and the possible targets for the US stock market and for gold now, treated very briefly. I drew up all the charts with the possible trading instructions on Saturday in the morning when the world still seemed to be fairly alright…
S&P 500 – weekly 8 Candle GUNNER24 Up:
Since last week fell short of the Gann Angle support – as to be seen at the blue arrows 1 + 2 – now a correction is threatening. A target might be the Gann Angle under the market, at about 1200. But if now unlimited liquidity is being pumped into the market to save the financial system the 1374 will be the target. Regarding the candle count it’s interesting that in the 33rd week the last rally generated an intermediate top very close to the Fibonacci number 34.
Above, at the intersection point we apply a counter setup:
As last week left the supporting green double arc for the first time since almost two years now a correction is threatening until this green double arc ends.
On Thursday the actual daily 5 Candle GUNNER24 Up Setup generated a short entry, appropriate to the weekly situation which is putting out a short scenario.
The final break of the support Gann Angle (see the last week’s issue) released the short entry.
Applying a 3 Candle GUNNER24 Down Setup above at the red 1 we see the following:
On Thursday the blue arc was broken triggering a short signal in this setup, too. The Friday candle is looking as if it would only like to re-test the blue arc. The short target above is valid for a normal exchange environment.
The volatility will increase next week, I think, that’s why here are the links to the last monthly setups where you may pick out some important monthly supports/resistances and targets from:
Dow Jones and S&P 500: http://www.gunner24.com/newsletter-archive/february-2011/06022011/
NASDAQ-100: http://www.gunner24.com/newsletter-archive/january-2011/16012011/
Gold:
The correction last week proceeded within the 2nd double arc on daily basis showing clearly the support function of this double arc. The price course on Friday points to a break upwards. Breaking through the Gann Angle support on daily basis would provide at least 1385 as to be the down target. The possible reactions after reaching of the feasible targets (the double arcs lying above the price) are really not to be evaluated.
The actual weekly setup continues putting out the upper limit of the setup as a target, at 1474:
Both last week candles found their respective backing by the support arising from left above. The possible targets, turning points and supports in the big picture – for gold and silver – can also be taken out of the actual monthly setups:
Gold: http://www.gunner24.com/newsletter-archive/february-2011/27022011/
Silver: http://www.gunner24.com/newsletter-archive/march-2011/06032011/
Be prepared!
Eduard Altmann