Summary
Hello and welcome to Edition 13 of the Boom Bust Bulletin. We have a front row seat to the quickly unfolding start of the second more speculative half of the 18.6-year Real Estate Cycle. The best ‘time’ to begin planning for this is right now. By doing your homework now, you ensure a far greater chance of maximising the opportunities for yourself and your family. The key to success howeve…
Key Claims
- 8 © Property Share Market Economics When I investigated news about Fortescue Metals however, it’s the complete opposite. You need to do this every time you read or hear big, important, and emotional news concerning a company and the industry it is most exposed to. Here are snippets of some of those headlines; note the dates. Source – AFR Source – AFR — confidence: high
- 9 © Property Share Market Economics Source – AFR Source – AFR Now let’s look again at that FMG chart from above. Specifically, that distribution channel. I have inserted all four headlines and used arrows to point out when this news was released relative to the chart. Please note the date on the chart. Note whether the headline is positive or negative. Finally, see what the price did after the headline was released. — confidence: medium
Mex Pete References
This BBB contains 2 references to the Mex Pete / Mexican Pete pattern.
Reference 1
…a stop loss to protect your capital. 15 © Property Share Market Economics Source – Optuma Source – Optuma The value of patience is shown with this chart of I-Shares S&P consumer staples ETF (NYSE – KXI). The first chart is a monthly one. You would use this time frame to determine the fact the ‘Mex Pete’ pattern is forming across all time new highs. Straight away though, you would see the blue bar below the wedge triangle I drew on there. Looking then at the second daily chart confirms that price broke away down below the rising wedge. That bottom green line marking the ascending wedge level of…
Reference 2
…marter to enter an already developing trend rather than sit, wait, and hope, then we need to look at what a suitable entry looks like? Let’s take the accumulation range and look for a pattern which Gann himself both referred to extensively in his books and traded personally. I call this pattern “Mexican Pete”, which is short for Mexican Petroleum, an oil stock once listed on the New York Stock Exchange. Below is a version of a chart showing the pattern. Source – Optuma. This is a daily chart for Calix Inc (NYSE – CALX), a software application company. Not that it matters for our purposes. The chart…
Notable Quotes
“This edition is therefore dedicated to W.D Gann, his lessons on active stock investing and the rules he set out for himself and his subscribers that are still valid today.”
“Its why we are all such keen students of his work INSIDE • Truth of the stock tape • Rules of Investing » Rule 1: Buy on a break above old levels.”
“Remember, you can always contact me via my email address darren@ propertysharemarketeconomics.com with your questions, queries, and feedback.”
“Different to fundamental analysis, which involves the study of a listed companies balance sheet, cash reserves and economic performance comparable to other similar sized and listed companies.”