Summary
Phil Anderson explains his core market-scanning habit — monitoring the new highs/lows list to identify trending sectors — and applies it to the Australian aviation and travel sector in March 2021. He uses Webjet (ASX:WEB) as a case study, noting its high short interest and a key price level that would confirm a higher bottom. The email closes by connecting this methodology to the first 67 pages of Gann’s Truth of the Stock Tape, specifically the Mex Pete example on page 67.
Key Claims
- Monitoring the new highs/lows list is Anderson’s primary method for identifying which sectors are trending at any given time — confidence: high
- The banking sector (discussed in Gann Email #8) could run for a couple of years from this point — confidence: medium
- Webjet (ASX:WEB) was one of the most heavily shorted stocks on the ASX at the time of writing — confidence: high
- A weekly close above $5.81 on WEB would confirm a higher bottom on the monthly chart and push it onto the 52-week new highs list — confidence: high
- Anderson would never hold a short position in a stock that moves onto the new highs list — confidence: high
- The aviation/travel sector broadly (SYD, AIA, WEB) was showing similar chart setups in March 2021 — confidence: medium
- Gann’s Truth of the Stock Tape (1923) preceded the Roaring Twenties bull market of 1924 onward, implying the book’s methods are suited to bull market conditions — confidence: high
- Much of Anderson’s market methodology is implicitly drawn from the first 67 pages of Truth of the Stock Tape — confidence: high
Mex Pete References
- Explicit mention: Anderson urges subscribers to read page 67 of Gann’s Truth of the Stock Tape, specifically the “Mex Pete” example, describing it as foundational to understanding how to trade a bull market.
- No specific stock or ascending triangle pattern is applied to Mex Pete in this email; the reference is directional only, pointing readers to the PSE-hosted download of those pages.
- Context: The email title is headed “Mex Pete,” suggesting this concept is the thematic anchor of the communication even though it is not elaborated upon directly — the reader is referred back to the Gann source material itself.
Stock Picks / Signals
- ASX:WEB (Webjet)
- Signal: Tentative long/watch — waiting for trend confirmation, not a direct buy recommendation
- Key level: Rise above $5.81 would confirm a higher bottom on the monthly chart and entry onto the 52-week new highs list
- Stop loss: Under a follow-up moving average or prior low (no specific price stated)
- Notable: Heavily shorted stock; Anderson views high short interest in a stock approaching new highs as a positive setup
- ASX:SYD (Sydney Airport) — mentioned as showing a similar chart setup; no specific levels given
- NZX:AIA (Auckland Airport) — mentioned as showing a similar chart setup; no specific levels given
Predictions / Forecasts
- Banking sector (discussed in Gann Email #8): could trend upward for approximately two years from March 2021, with normal pullbacks along the way — confidence: medium
- Aviation/travel sector: implied early-stage recovery trend beginning March 2021, with WEB as the leading indicator stock for the sector — confidence: medium
- No specific date targets or price targets beyond the $5.81 trigger level for WEB
Notable Quotes
“In markets never allow yourself to become stressed out because you feel you’ve missed out on the run. This is self-defeating behaviour. It may also blind you to the next opportunity.”
“I would never be short a stock if it moved into the new highs list.”