“It’s tough to make predictions, especially about the future.”
Jesse Livermore’s theory on breaking par works—I’ve seen it in action many times. But if we waited for that 100 number to place a trade, we wouldn’t make that many trades. That 100 number is rare, and plenty of markets have exceeded it without ever dropping back under it again. It’s highly doubtful that gasoline will ever again sell for $1 per gallon or gold for $100 an ounce. Still, Livermore’s theorem got me thinking. Is breaking through round numbers significant, and if 100 represents a significant barrier, then how about 200 or 300?
Markets tend to behave differently at the significant ...