Gann Master Cycle update - July 7th 2023
Comparing Seasonal Patterns and the Behavior of Top-10 US Stocks
Introduction
In yesterday’s post, I showed you that the composite of the Top-10 US stocks is close to a square out in price and time.
This is just an average of the 10 most important and traded stocks. Stocks may have a different seasonal pattern, so in his Stock Market Course, W.D. Gann commented on this.
“I have told you before that you should not depend upon the Averages to forecast the trend of individual stocks. These Averages give you the general trend, and while many stocks will follow this average trend, you should figure out each stock individually and let its position on geometrical angles and time periods determine the different months in the year when the stock is likely to make tops and bottoms.” W.D. Gann Stock Market Course
With the assistance of Timing Solutions software, I analyzed the seasonal pattern of each of the top 10 stocks and cross-referenced it with the forecasts of the primary US Indices we track. As a result, I discovered that most of these stocks and the main US Indices follow the same combined seasonal pattern.
The seasonal pattern may not repeat similarly as in the past but is additional information that may be helpful in any assessment when a possible change in trend may be expected.
Although we already see Island Reversal patterns in many US Indices and stocks, hinting at a possible trend change, we may not have seen the end of a trend yet. Top Island Reversal patterns need to occur at increased volume (not convincing here) and may have a failure rate (13%) as well1.
Can the top-10 US stocks be an indicator of potential market shifts ahead? Some significant planetary cycles unfolding in the third week of July may align with the normal seasonal pattern. Our premium subscribers have already received an update on these planetary cycles in yesterday’s post. In this week's post, I have compared the Seasonal Patterns of the US Stocks for our premium subscribers with the main US Indices.
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. Anomalies can occur. Hence, past performance is no guarantee for the future. No advice. Please take a look at our full disclaimer.