Are We Seeing a Last Point of Supply (LPSY)?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 05-25-12 Last week’s Market Letter spent time reviewing the Wyckoff Wave from a longer-term perspective. In doing that, it made a case that the stock market could well be more bullish than bearish. In addition, I felt we would not be seeing a significant reaction in the near future. How did last week’s market action measure up to last week’s Market Letter? On Friday, May 18th, the Wyckoff Wave …

A Longer Term View of the Market

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Click Here For Wyckoff Wave Chart 05-17-12 This past week, the Wyckoff Wave reacted past the low of the spring at point F. While the reaction, with the exception of one day (Thursday), has not been on strong spread, the relatively high volume has confirmed the presence of supply. It is also suggesting that demand has not “left the building”. In addition, the Wyckoff Wave is reacting within a short-term down trend channel. Despite the …

Have We Tested The Spring?

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Click Here For Wyckoff Wave Chart 05-11-12 The Wyckoff Wave spent most of this week finding support at the 30,742 level. This is the support level of the original trading range that began in January. It is marked by a support line drawn from point V. On Monday (marked by the red up arrow), the Wyckoff Wave experienced a gap opening to the down side and spent the day rallying back to just below the …

Are We (Finally) Testing the Spring?

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Click Here For Wyckoff Wave Chart 05-04-12 Wyckoff students know that number one Springs (Shakeouts) and number two springs need to be tested. It’s simply a matter of waiting for the test to happen. This week, it finally appears the Wyckoff Wave is reacting to test the spring at point F. It’s been a long road with a detour or two to get to this point. However, with the weakening of the short term uptrend …

What Happened to the Test of the Spring (Shakeout)?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 04-27-12 In my last market letter, I discussed how the Wyckoff Wave would be testing the spring (shakeout) we saw at point F. While we did see a brief reaction on Monday to point H, the day’s market action was not of good quality and the Wyckoff Wave rallied for the next four days. Patently, this past week did not bring a test of the spring, but it did …

Testing the Spring – Are We Going Up or Down?

Jim OBrien Week In Review 1 Comment

Click Here For Wyckoff Wave Chart 04-20-12 This week, the Wyckoff Wave concluded its rally off the spring (shakeout) at point F and began testing reaction. Its success or failure could significantly impact the future direction and objectives of the stock market, as measured by the Wyckoff Wave. While many Wyckoff students, including myself, have a bullish bias, it is extremely important not to allow this to cloud our judgment. It is always best to …

The Technometer to the Rescue

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 04-13-12 The Wyckoff Wave had an interesting week. The highlight was the large reaction on Wednesday (point F). The increased price spread and volume drove the Wyckoff Wave through the bottom of the original trading range and into new low ground. What was happening? Recently, it appeared the Wyckoff Wave was in a new trading range after the rally from points Z to A. Then, after a rally to …

Are We In A New Trading Range?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 04-05-12 This week, the Wyckoff Wave rallied to point E and then reacted back to test the lows at point D. Does this mean we are beginning a new trading range? There are positive signs that we are and negative signs that present the possibility of a deeper reaction. Let’s take a look at both scenarios and see if we can come to some sort of a conclusion. First …

Did We Fall Back Into The Creek?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 03-30-12 The stock market is always surprising us. There are times when it can move in a completely opposite direction than what was expected. However, if we go back and look at what happened using basic Wyckoff, these supposed contradictions can make a great deal of sense. Just one week ago, it appeared the Wyckoff Wave and the entire stock market was ready for a significant advance. The Wyckoff …

A Jump Across The Creek. What Does That Mean & What’s Next?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 03-16-12 After rallying off the lows at the bottom of the trading range (point Z), the Wyckoff Wave ran out of steam and moved sideways for a couple of days. In last week’s Market Letter I questioned that point Z was a spring. My logic was that the expected bounce from the spring (good demand coming into the market) didn’t occur. While I still stand by that conclusion, the …

Are We Ready To Rally?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 03-23-12 On the week ending March 16, 2012, the Wyckoff Wave broke through the resistance of the short term trading range or area of re-accumulation. It reached a new high at point A and then began to react back towards the top of the trading range. As Wyckoff students know, this is a reaction back to the creek and, if successful, will become a major Last Point of Support …

Did We Spring The Trading Range?

Jim OBrien Week In Review 0 Comments

Click Here For Wyckoff Wave Chart 03-09-12 For the last six weeks the Wyckoff Wave has confined its price movement to a relatively narrow trading range. It has been a frustrating period as the Wave, and the stock market in general, simply seems content to move sideways without effort or enthusiasm. While this is difficult for intermediate and long-term investors, it is driving short-term and swing traders crazy. They have had no good opportunity to …