Today it seems is celebrated as Gann Day. I learnt this via blogger, Eddy Elfenbein who himself references this article from Barron’s (Link).
Gann has quite a large number of followers who believe that the future can be foretold using methods preached / written down by Gann. While I am a strong disbeliever in one’s ability to know how the markets will unfold in the near term future (its much easier to predict the extreme long term – it will be Up :)).
The thing about Gann day as the article explains is that and I quote “when markets are more likely to reverse than any other day of the year.”. Since I believe only when such wide (wild?) predictions are backed by substantial data, I decided to check the behavior of Nifty 50 in the following days of September 22.
Data itself is pretty hazy showcasing more of randominity than there being any order which in itself does not surprise me. A single day cannot be a major turning point year after year. In fact, even in cycle theory, practioniers look out for cycles that vary and aren’t concerned with it being of a fixed nature. Its only the ease of plotting cycles in our charting softwares that make us look for fixed width cycles.
As the data below showcases, after 2008, markets have barely moved much for the next 3 months (60 Calendar days). Then again, there is always a first time 🙂
