Gann Master Cycle - Feb 3 2023
Crude Oil and Gold a leading indicator for the $DJIA, $SPX and $COMPX
Introduction
Last week I tweeted about Crude Oil and Gold as leading indicators for the Stock Market. The chart below shows how the DJIA lags the inverse of Crude Oil and Gold.
The inverse correlation with Crude Oil is the highest and makes sense as the increase in oil prices can negatively impact the economy and push investors to buy more gold.
If this correlation continues, the stock market may still have room for higher price levels. The amplitude in the above analysis is not implied. I think it’s better to look for turns in the future.
There are some dips on the way, but seeing this Intermarket relation, this chart might tell us that the first quarter of 2023, perhaps even until mid-April, is good for the stock market with pullbacks in between.
This Crude Oil and Gold cycle currently follows a harmonic of the well-known 7-year cycle. W.D. Gann discussed this cycle in his Stock Market Course, and I will show the premium subscribers how this cycle can unfold in a subsequent Fibonacci number of months and fit the Gann Master Cycle in 2023.
Our premium subscribers can further read this analysis and update on the Gann Master Cycles below.
Disclaimer: This analysis is intended for general informational & educational purposes only. Hypothetical or simulated performance based on past cycles has many limitations. Cycles can contract, extend, and invert. Hence, past performance is no guarantee for the future. Trading futures, options, and stocks is a high-risk business. Fiorente2 Newsletter does not offer trade advice. Please take a look at our full disclaimer.
Disclosure: No direct positions at the time of writing