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3 Jun. 17

Vol 2 No 23

This is the first official Supply and demand letter, I am currently

travelling so not in as many markets as normal, but I hope you enjoy.

Please take the time to look at the over simplified MINI course sent
to you with this letter. Over time we will be expanding on and
offering, more courses, with our overall aim to make you the best
traders you can be, no promises, no pack drill and no smoke and
mirrors. I am a trader first, that is how I feed my family. I have a
warped sense of humor, and write as I think and speak. So please
excuse any typos, they are not intentional . So Here we go .

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Well Im on the move, currently sitting in the lounge in Auckland,

waiting for my next bus, bound for Barcelona!! Traders life .. NOT;
as you get to know me you will understand I have a very busy
commercial life centered around trading but with other projects
from time to time.

Todays edition will be a little shorter (famous last words) as Im

travelling into Friday evening and Saturday morning, for that I
apologise, I have as much control over an airline as I do a specific
market LOL These things usually run 10 14 pages each week of
hopefully useful material you can relate to. I write a little each day
as Im managing my trades, and talk about the industry warts and all.
Its as close to sitting with me as is possible.

Dont let the quantity deter you from paying attention. I have a small
section on Gold that talks about one of the traps I fall into all the
time, paying attention is key.

Someone said to me this week I know all about Gann and yet they
dont understand his basic, yet powerful, mechanical system. I have
been rewarded many times over for the diligence Ive put into
mastering it.

So, todays focus is form reading, how good is yours, could you
improve it? I know I could.

Copyright 2017 J. Kirk & W D Gann Inc. 3 Jun. 17


THE MARKETS

Each week I write a section on the Markets, trades we are in and

managing, and direction on how we see the entries and exits, you
should start to apply these to your markets

LOONIE - CA6

We left the Loonie having a little rally, and trailing our stops.

We were finally stopped out around 7403 on Tuesday, and I did not rush
to get back in given I was going away.

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Copyright 2017 J. Kirk & W D Gann Inc. 3 Jun. 17


BEANS - The Form tells all.

Wheres you weally Bean ? I listen to all the great talking heads
saying Buy Buy Buy .. and know a few people sucked into that through a
couple of different trade services. Why not trade the chart, why the
need to Guess Ive spoken so many times about hi probability trades,
I think, well for me anyway, thats where the money is.

Additionally if you look some of the longer term charts the lows
arent due yet. Its only now Im starting to show some interest in
beans and will try and trade into the low for the next bounce. I may
be wrong but id say 841 and 796 could be targets in this market for
snappy Double bottoms too much to wish for really !!

We left last week short beans as per the chart below.

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Copyright 2017 J. Kirk & W D Gann Inc. 3 Jun. 17


Here is the current position going into Thursdays trade Ive moved
my stop down expecting a pop, but its been a nice trade, Ive left
the Currency tool on you can see the profit per contract on the
balance of our position. I dont do it often as I dont like to push
monetary value, but I was reminded this week talking to a trader, we
are not here for a haircut!

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Copyright 2017 J. Kirk & W D Gann Inc. 3 Jun. 17


GOLD

Now I wanted to talk a little about parallax error, or what the mind
sees as opposed to what is there,

I may have spoken about this before but its something that plays
havoc with me when Im not paying attention. Its this pattern here.

Ive numbered the bars below (not all of them) the issue for me is
when Im not paying attention I misread the swings. By Bar 1 Im
looking for long trades, we have an overbalance in price to the upside
and have taken out a previous lower top, by definition the trend is
up.

Here is the issue, by bar 3 as marked, Im looking at a reversal (bar

1) and reversal (bar 3) and I see visually a lower top right? .
WRONG ! If I do see that it changes the way I handle bars 4,5 and 6.

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Copyright 2017 J. Kirk & W D Gann Inc. 3 Jun. 17


What I see as my eyes play tricks on me is a lower top at bar 3

WRONG

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Copyright 2017 J. Kirk & W D Gann Inc. 3 Jun. 17


Below is what the Swing chart ACTUALLY looked like, which gave us a
great long trade.

Reading the swing chart properly, reading the form, will make you more
money than any other thing Ive discovered.

If I was not paying attention, I would have missed that trade based on
my eyes assuming the reversal bar on bar 1 would create a higher
bottom, and then bar 3 looking like a lower top.

So the trade looks like this:

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Copyright 2017 J. Kirk & W D Gann Inc. 3 Jun. 17


It may pay to look back over your market and see if you have been
caught like this before, as I say its one of the things I have to be
very careful about as I watch so many markets. DONT rely on software
it does not always get it right, learn to see these things for
yourself.

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Copyright 2017 J. Kirk & W D Gann Inc. 3 Jun. 17


AUSSIE DOLLAR - DA6

A comment in the Aussie dollar

This market has been grinding higher the last 3 weeks, I define that
as lots of inside bars and outside bars not making much progress, un
able to achieve 50% of the last reasonable range, years of experience
tell me to leave these things alone.

At the end of last week we were left with a potential FLT now I have
not done much work on this but the follow through to the downside was
an over balance in price, and we got a 2 bar Pop to create the second
lower top and a shorting opportunity. Thursday and we were filled
short, have already taken 2/3rds off at R:R and been able to move
our stops down to at least cover commissions.

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Copyright 2017 J. Kirk & W D Gann Inc. 3 Jun. 17


POSITIONS

Well we are still in 3 positions, my preference when travelling is to

be flat, but Im trying to keep this rolling along for you guys.

The Aussie has an overall profit as we have already taken 2/3rds of

our position off and moved out stops down. The remaining contracts
have about $370 each risk.

Beans and gold are Profitable.

DATE L / S Market ENTRY Current Risk per

STOP remaining
contract
23 May S Beans - ZSEN 952 923 1450
26 May L GCE 1260 1261 100
1 June S AUSSIE DA6 7418 7455 370

*Red means at risk - Black is in profit, per contract based on current Stop, on any remaining open
positions, Profit may already have been taken on 2/3rds of the opening position size meaning a loss on
the remaining position does not necessarily mean a loss on the overall trade.

(I do my best to check the numbers and dates I transpose, but sometimes Im a bit dyslexic and mistype one
- I apologise in advance)

I hope you enjoyed the first edition I look forward to working with
you and assisting you meet your trading goals, and to find success
with W D Ganns methods.

It is a journey, one that may prove to be a life times work for me, it
was for Gann, but a journey well worthwhile, and you do not need to be
GANN to make a living with his methods just dont complicate it.

Have a great week & may the GoFR be with you .. J

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Copyright 2017 J. Kirk & W D Gann Inc. 3 Jun. 17