Rotation Is Helping the Market

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Click Here For Wyckoff Wave Chart 05-10 Since last November, the Wyckoff Wave has been in an intermediate up trend channel. The advance has been somewhat unique, in that there have been no significant reactions. The Wyckoff Wave would advance to the uptrend channel’s supply line. Then it would move sideways towards the supply line on narrow price spread and moderate volume. This process has been completed three times and we appear to be in …

Creek Jump or Upthrust?

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Click Here For Wyckoff Wave Chart 05-03 For the first three days of the trading week it appeared that the Wyckoff Wave was coming to the end of a minor trading range and getting ready to react. Relative volume was decreasing. The effort of the Optimism – Pessimism Index was exceeding the results shown by the Wyckoff Wave. This created a short-term negative divergence. The Technometer was in an overbought condition and the Force Index …

Backing Up To The Creek

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Click Here For Wyckoff Wave Chart 04-26-13 This past week, the Wyckoff Wave rallied on both Monday and Tuesday. It then moved sideways in a small trading range for the remainder of the week. While this seems fairly uneventful, we are seeing a change in character that may provide some clues as to the market’s further direction. These clues are found in how the Wyckoff Wave has penetrated resistance (Jumped the Creek) since the intermediate-term …

Does The News Move Stocks?

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Click Here For Wyckoff Wave Chart 04-19-13 A week ago Friday (the day after point B), the Wyckoff Wave put in a lack of demand day and appeared extremely vulnerable to a reaction. This past week it has reacted and is testing the support line ( G – M) of the intermediate-term up trend channel. A short term count along the 34,800 line provides an objective area of between 34,000 and 33,700. This is above …

Those Pesky Gap Openings

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Click Here For Wyckoff Wave Chart 04-12-13 The stock market, as represented by the Wyckoff Wave, is solidly in the next stage of the bull market that began at the end of 2009. The last few blog posts have covered the  Wave’s intermediate and long-term trends and this past week has brought more of the same. If we look at the intermediate up trend channel (support line drawn from points G – M, supply line …

A Step Back View of the Market

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Click Here For Wyckoff Wave Chart 04-05-13  This week the Wyckoff Wave attempted to leave the X – Y trading range to both the upside and the downside. As of Friday’s close, both of these attempts failed. In addition, neither effort appeared to be ending action, in the form of an upthrust or a spring. Last Friday the Wyckoff Wave left the trading range to the upside. However, Monday’s market action showed a lack of …

Is Something About To Happen?

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Click Here For Wyckoff Wave Chart 03-29-13 The Wyckoff Wave finished a shortened, but unproductive week, with an attempt to leave its most recent sideways movement or trading range to the upside. While Thursday’s market action was not, in itself, particularly impressive, we might be seeing the beginning of some ending action. The Wyckoff Wave has spent the last two weeks in this minor sideways movement, which began at point X. The operative word here …

Longer Term Perspectives Can Be Helpful

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Click Here For Wyckoff Wave Chart 03-22-13 Since the first of the year, the Wyckoff Wave’s performance, while quite positive, has been a bit frustrating. We have seen short rallies and long sideways movements. Spreads are narrower and trying to time turning points has been an exercise in frustration. When this happens, it is always helpful to take a few steps back and look at the stock market from a broader perspective.  In this case, …

The Little Market Index That Could

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Click Here For Wyckoff Wave Chart 03-15-13 Many years ago a delightful children’s story was written about a small railroad engine in a large railroad yard. The engine’s name was Tootle and, despite being small, he made up for everything with his unbounded determination to deliver his cargo. He chugged. He pulled. He overcame all the obstacles in his way. For the past few months, the Wyckoff Wave has been the little market index that …

Pesky Supply & Sideways Reactions

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Click Here For Wyckoff Wave Chart 03-08-13 This week the Wyckoff Wave left the minor trading range and rallied to its highest level since the 2007 – 2008 bear market. However, the last four trading days were on relatively reduced price spread and good volume. In addition, the Wyckoff Wave was unable to penetrate the supply line of the intermediate-term up trend channel. This suggests the Wyckoff Wave has jumped the Creek and may well …

Springs & Upthrust – What’s Going On?

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Click Herre For Wyckoff Wave Chart 03-01-13 Last week, the Wyckoff Wave appeared to spring the support line of the short term trading range. However, as mentioned last week, good demand had not come into the market to confirm the spring. This suggested we have not seen a spring and were still waiting for ending action. Then on Monday, strong supply came into the market and drove the Wyckoff Wave back through the support area. …

Did We Have A Minor Spring?

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Click Here For Wyckoff Wave Chart 02-22-13 On Thursday, the Wyckoff Wave penetrated the support line drawn from point S and then rallied back into the trading range. This gives us an excellent opportunity to discuss Springs and see how they apply to today’s market action. The first rule in identifying a spring is that: A Spring is not a Spring until it has Sprung. That means that just because a stock or index penetrates …