Dec

22

The following is from "How to make profits trading in commodities: A study of the commodity market" (page 42) by W.D. Gann

Google excerpt is here:

"Triple Tops (and bottoms) are the MOST IMPORTANT. By going over past records you will find that the greatest advances and declines, or those that last the longest, start from Triple Tops or Triple Bottons. …. Triple Tops occurring several months apart are more important than several weeks apart, and the most important campaigns start when Triple Tops or Bottoms occur several years apart."

With Mr. Gann's insights in mind– one should take a look at Mr. Copper's chart– which just broke out from a triple top dating back to 2006. Furthermore, stock market bears/bulls who view copper as predictive might be advised to heed this news as well. Lastly, one notes that copper is in a modest backwardation– which is also quite rare.

If today turns out to be the high in copper, please note that Mr. Gann died in 1955– hence he will not be able to defend himself.

Victor Niederhoffer comments:

One will also note that Mr. Gann's view is opposite from the chair's view that round numbers never hold, but consistent with the boy plunger's view that a break of a round number is a mad trend following signal as witness his profits in anaconda before he became the fifth suicide of his second to last wife.


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