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

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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 …

Divergences and Reactions

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Click Here For Wyckoff Wave Chart 09-30-11 This week, the stock market, as measured by the Wyckoff Wave, put in a lower top and is reacting to test the bottom of the trading range. What happened this week and what clues have we received that may forecast future market action? Last Thursday, the Wyckoff Wave tested the bottom of the trading range at point F. It then rallied to point G and is now reacting …

When is a test not a test?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 09-23-11 A review of the stock market’s action, as represented by the Wyckoff Wave, gives us an opportunity to discuss tests of upthrusts. In this case, what we thought was a test, in fact was not. We did not see the true test until Tuesday of this week. To review: The Wyckoff Wave reacted strongly and experienced a selling climax at point X. The rally to point Y established …

Short, Interesting Week

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 09-09-11 The stock market, as measured by the Wyckoff Wave, put in a short, but interesting week. The week’s action brought about a successful test of an up thrust and began a reaction that may go simply to the bottom of the trading range. There are also two other scenarios that will be discussed later in this letter. On Tuesday, September 6th, the Wyckoff Wave experienced an intraday failure …

Test of an Upthrust?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 09-02-11 The stock market, as measured by the Wyckoff Wave, has up thrusted the new trading range and is reacting. We can expect to see the response to the upthrust, in the form of a test, possibly as soon as next week. Let’s look at the various scenarios that we could encounter as summer turns to fall. This week, the Wyckoff Wave rallied and penetrated the resistance at point …

Starting a New Phase?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 08-26-11 The stock market, as represented by the Wyckoff Wave, appears to be entering a new phase. This week’s market action has appeared to confirm a Selling Climax and weakened the latest short term down trend channel. While those who definitively prejudge the future action and trend of the stock market are often disappointed, if Wyckoff students use their knowledge and the Wyckoff Tools, they often have a leg …