SHORT SECOND RALLY

W.D Gann says: “SECONDARY RALLY OR LOWER TOP. After a prolonged advance when wheat or any
commodity reached final high and the Bull campaign is over, there is usually a short severe decline,
lasting anywhere from 1 to 2 and possibly 3 weeks or months. After the first sharp decline, the
market may remain in a narrow trading range for 10 days or 2 or 3 weeks, in some cases even
longer.”

“After that, there is a SECONDARY RALLY, sometimes getting up near the OLD TOP and
sometimes not reaching it by many points. Going over past records you will find that a market
seldom fails to have this SECONDARY RALLY. When this SECONDARY RALLY comes, especially
after the TREND has TURNED DOWN, it is the safest rally on which to SELL SHORT, because the
decline is faster from that time on and rallies smaller.”

-How to Make Profits in Commodities