Gann’s Trading Campaigns


Robert Gordon’s Great Campaign in Cotton

[Tunnel Thru the Air. pg 195]

AFTER Robert had sold out his October cotton at 17.30 and his December cotton at 17.50 on June 10th, he decided to watch the market very closely for a few days because he thought it would go lower.
His forecast indicated last buying level around June 25th. He figured that after this time the market would go higher until September 5th to 6th, when he figured it would be final high.
On June 25th October cotton declined to 16.80 and he bought 500 October at 16.83 and 500 December at 17.15. He figured that it would run up for about thirty days so on July 25th he sold 500 October cotton at 19c and sold 500 December at 19.20 and went short of 500 December at 19.20.

The decline followed as he expected. On July 30th he sold 500 more December cotton at 18.60 and on August 6th he bought 1000 December at 17.40 to cover his short contracts. He figured that the Government report on August 8th would be very bullish and that cotton would go up very fast and continue until around September 5th to 6th, or until the Government report in September. On August 6th he bought 1000 December at 17.35. On August 8th he bought 500 December at 17.30. The Government
was very bullish as he expected and cotton.

[pg 196]
Cotton advanced 200 points on August 8th. On August 9th he sold out his 1500 December at 20.30 and sold 1000 December short at 20.30. A big decline followed and on August 13th he bought 1000 December cotton at 19.10 and also bought 1000 December at 19.10 for long account. He started in to pyramid on the way up. On August 19th he bought 500 more December at 20.10; on August 22nd he bought 500 December at 21.10; on August 27th he bought 500 December at 22.30 and on August 29th bought 300 December at 23.30. On September 8th the Government report was very bullish as he had forecast and the market went up. This was the time when he expected the market to make final top for a big decline. On September 8th he sold 2800 bales of December at 24.40 and on the same day sold 2000 bales of December at 24.50 for short account. On September 9th he sold 500 more December at 23.30; on September 11th sold 300 December at 22.30. On September 13th he bought 2800 December at 21.60 to cover his short contract. On September 14th he sold 1000 December at 22.60. On September 17th sold 500 December at 21.60 and on September 21st sold 300 December at 20.60. September 23rd he figured that the market was bottom for a rally and bought 1800 December at 20.60, and on the same day bought 1000 December at 20.60 for long account. On September 28th he sold 1000 December at 22c and also went short 1000 December at 22.10. On September 29th he bought 1000 December at 21.30 and on September 29th bought 1000 December at 21.30 for long account. On October 3rd he sold 1000 December at 21.50 and also went short of 1000 December at 21.50. On October 6th he bought 1000 December at 20.75 and went long, because he figured the market would be higher for the Government report on October 8th.”

(click to enlarge)

Why? 

See “Forecasting Key” Part1 page 23 “W.D. Ganns Law Of Vibration & Forecasting Key -How The Annual Forecasts Were Made-“

Robert Gordon’s Great Campaign in Major Motors

Major Motors was Ganns name for General Motors.

June 30 buy.

August 8 temporary high.

June 30 buy.

September 16, Robert Gordon sells Major Motors and that is the end of his campaign.

On Sunday, June 19, 1927, Robert Gordon spent the day studying his charts and working out his cycles for stocks, cotton and grain. He was short of Major Motors and was watching it very closely. On this day he made a new and great discovery of a time factor from which he figured that Major Motors would decline until about June 30th and then start an advance which would last until about September 16th, 1927, when the Company would be 19 years old and at that time the stock would reach final high and would then go down to February to April, 1929.

He figured that the stock should advance to around 270 by September 16th and made up his mind to watch it closely and cover his shorts if it went down around June 30th, and then start buying the stock. On June 30th it declined and he bought in his short contracts and bought for long account 500 shares of Major Motors at 192½.

He decided to pyramid it all the way up. On July 15th he bought 500 shares at 204; on July 21st he bought 300 at 214 and on July 26th bought 300 more at 224. On August 5th the stock advanced to 230 and he raised his stop on 1600 shares to 225. On August 8th his stock was sold out at 225. He still believed that the stock would go up to around 270 by September 16th but he expected a reaction of about 12 to 15 points so he decided to wait for a few days and watch his charts to see how the stock acted. On August 12th Major Motors declined to 218, being down a little over 12 points as he figured, and he bought 1000 shares at 218. He placed a stop at 212, a point which he figured it would not decline to.

The advance started, and on August 20th he bought 300 shares at 228; on August 24th bought 300 shares more at 238 and on August 26th bought 300 shares more at 248. When he started pyramiding, his plan was to buy or sell the largest amount first and then gradually decrease buying and selling smaller amounts on the way up or down, and always using a stop loss order. On September 7th the stock advanced to 253 and he raised his stop on his entire amount to 243. This stop was never reached but on September 14th a rapid advance was on and he bought 300 shares more at 258, giving him a line of 2200 shares of stock.

He figured that it should advance on September 16th to around 270. When the market advanced to 272 at this time he sold out his 2200 shares at 272.
He cleaned up a profit on this deal of over $80,000.00, and as he figured that the stock would make final top around this time he decided to put out a line of short stock and pyramid all the way down, remaining short for the long pull. On September 17th he sold 500 shares of the new Major Motors stock at 138 and 500 shares at 137 and placed a stop on it at 147.

(click to enlarge)

Why? 

See “Forecasting Key” Part1 page 29 “W.D. Ganns Law Of Vibration & Forecasting Key -How The Annual Forecasts Were Made-“