Crossing the Creek and the Optimism – Pessimism Index

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 12-23-11 This week, the Wyckoff Wave attempted to cross the creek, marked by the resistance line at point K, and leave the trading range to the upside. Will this effort be successful or will we have what Mr. Robert Evans called an Oops? For those who are not familiar with the Oops story, it is when a stock or index tries to leave the trading range to the upside …

Corrective Reactions and a Discussion about Gap Openings

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 12-16-11 This past week, the stock market, as measured by the Wyckoff Wave, experienced a bit of a change in character. The strong supply that had dominated the moves from points K to L, M to N and O to P has been diminished as we watch the reaction from point Q. The reaction from points K to L lasted three days and saw relatively widespread and increased volume. …

Overhanging supply and the news

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 12-09-11 No one can dispute that the financial problems plaguing the European Community are not having an impact on the American stock market. It has become a major topic of discussion among investors and traders. Each morning, everyone checks the S&P futures before having their first cup of coffee. However, Wyckoff traders are taught to ignore the news. They know that news doesn’t change the market’s real destination, it …

Where Do We Go From Here?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 12-02-11 In his excellent, but little-known, book “Where Do We Go From Year”, Dr. Martin Luther King Jr. described his blueprint for continuing the civil rights movement after the signing of the 1964 Civil Rights Act. He often referred to the history of the movement and it must be understood as it often repeats itself, although on slightly different ways. The same is true of the stock market. Sometimes …

Don’t Prejudge the Market

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 11-24-11 Ever since I began writing my Weekly Market Reports, to post on the blog, and my daily Pulse of the Market Reports for charting service subscribers, I have received many e-mails about my comments and observations. While I sincerely appreciate the kind words, I am most interested and impressed by the observations of other Wyckoff students and their take on recent market action and its future direction. Many …

The Wyckoff Wave: Relative Strength and the Optimism – Pessimism Index

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 11-18-11 One of the most important Wyckoff techniques is breaking down an index’s or stock’s daily action into individual up waves and down waves. This allows us to determine how much of the day’s volume is demand and how much is supply. This information is then transferred to the Optimism – Pessimism Index (O – P). The O – P is a continuing number. Each time there is an …

News and the Stock Market

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 11-11-11 This Tuesday, the stock market opened higher, and then reacted. In the afternoon, it rallied strongly and closed near the day’s high. The “expert news analysts” attributed the rally to the news that Italian Prime Minister Silvio Berlusconi would be resigning and that this was positive news for the pending Italian financial crisis. The following morning, the market had a huge gap opening to the down side. It …

Did the Wyckoff Wave back up to the Creek?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 11-05-11 In last week’s Market Letter, I suggested that the Wyckoff Wave would be backing up to the Creek. A successful back up would be an important last point of support (LPS) and the beginning of the markup phase. This Tuesday, November 1st, the Wave reacted to point L. It then has rallied in a fairly unimpressive manner. Was the reaction to point L really a last point of …

Absorption at the top of a Trading Range

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 10-28-11 This week the stock market, as measured by the Wyckoff Wave, jumped its resistance and moved into new high ground, relative to the trading range. This was a most interesting occurrence that, in hindsight, looks fairly reasonable, but confused many Wyckoff students, including myself, as it developed. I don’t like to “miss one”, but if that happens it is extremely important to review the action and be better …

A Creek Jump or an Upthrust?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 10-21-11 On Friday, the Wyckoff Wave moved through the final resistance of the trading range into new high ground. Is this the beginning of an important Jump Across the Creek or will the Wyckoff Wave upthrust the trading range and begin a move to the down side? Legitimate arguments can be made for both scenarios. The Bulls can point to an oversold Technometer and that the Wave has respected …

Timing the Market and Turning Points

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 10-14-11 The stock market, as measured by the Wyckoff Wave turned in a most interesting week. The rally off the spring at point H was, in my opinion, difficult to analyze and in several instances, has not behaved according to expectations. It has caused difficulties for short-term traders, of which I was one, but has reinforced important lessons about how short-term traders deal with turning points in the market. …

Springs and Trend Lines

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 10-07-11 This week the Wyckoff Wave sprung the trading range. The number two spring has brought the Wave to the supply line of the short term downtrend, with the potential for continued movement to the upside. This could be the beginning of a bull market or a bit of a disappointment as the stock market says it is not quite ready for its next move. Let’s revisit the trading …