Summary
Phil Anderson’s seventh subscriber Gann email focuses on sector-level stock selection as a precursor to individual stock picks, introducing his preference for buying strength rather than buying dips. He identifies five sectors showing the most momentum in late October 2022 and encourages readers to use the 52-week new highs/lows list as a daily discipline for understanding where capital is flowing. He also offers brief ground-level observations from London and St Albans as informal counter-evidence to mainstream UK recession narratives.
Key Claims
- Phil prefers a “buy high, sell higher” approach over “buy low, sell high” — confidence: high
- Sectors with the most momentum as of late October 2022: larger banks (ex-UK), lithium miners, drillers and engineering/maintenance/mining equipment suppliers, select health stocks, food-related stocks — confidence: high
- Australian manufacturing stocks are performing poorly and appearing on the 52-week new lows list — confidence: high
- The 52-week new highs/lows list is described as the best daily tool for tracking capital flows across the market — confidence: high
- UK media recession and property crash warnings are characterised as overdone and a property crash is described as “unlikely” — confidence: medium
- Phil expected a final market low at the end of the week of 24 October 2022 — confidence: medium
- Hiring signs and busy town markets in London and St Albans are cited as informal indicators of labour market and consumer strength contradicting recession narratives — confidence: medium
Mex Pete References
None.
Stock Picks / Signals
No specific tickers named. Sector-level directional guidance only:
- Long bias: larger banks (ex-UK), lithium miners, drillers and mining services/engineering/equipment suppliers, select health stocks, food-related stocks
- Avoid / short candidates: Australian manufacturing stocks (appearing on 52-week new lows list)
Predictions / Forecasts
- Final market low: Expected at or around the end of the week of 24 October 2022 — no specific index or price level given.
- UK property crash: Characterised as unlikely despite widespread media forecasts at the time.
Notable Quotes
“I try to buy high, sell higher. It’s a much more exciting investment career this way. This keeps you in sectors / stocks that are moving.”
“Regardless of whether you consider yourself a stock market investor or not, the list will tell you a lot about the world and where the money is flowing, or not.”