W D Gann’s key tools of trade were his brilliant mathematical, cycle and technical analysis skills. He said this:
“When a stock or a commodity advances into new territory or to prices which it has not reached for months or years, it shows that the force or driving power is working in that direction. It is the same principle as any other force which has been restrained and breaks out. Water may be held back by a dam, but if it breaks through the dam, you would know that it would continue downwards until it reaches another dam or some obstruction or resistance which would stop it.”
SP500 and DOW
It appears that interim peak has formed since early January but I expect the Dow or SP500 is marching higher towards the end of the year with at least 15% increase. However, it would not be a smooth sailing this year as I do expect 7%-10% correction along the way before ending higher by Dec 2014.
The year 2014 will see the gold price ends in positive note for the very first time since it peaked at 1920 in 2011. But, it may go lower one more time before taking off to higher high.
USD: It will resume the uptrend and break 85 in 2014
AUDUSD: It will drop further to 83 by the end of the year