Dull Sideways Action Continues

The Wyckoff Wave spent another week moving sideways to slightly lower.  Volume was lethargic as well.  Our indicators show slight supply present.

The Technometer spent the week trading neutral.

The S&P was down approximately .5% for the week and the Nasdaq up over .3% for the week.

The Wyckoff Wave spent the week drifting slightly lower.  We have been in the midst of a correction with no indications yet of leaving the trading range in either direction.

On Wednesday the O-P touch another new low for the downtrend from “J” while the Wyckoff Wave was still holding higher levels above “M” and “O”.   The Technometer almost reach oversold 10 days ago, but spent last week hovering around the neutral level.  The O-P showed a little strength Thursday/Friday so we shall see if this continues this week.  If it does, we could possibly see a move through resistance at the top of the recent trading range.

We are still hesitant to buy as our numerous other indices do not support a rally here.  Some recently strong stocks could be purchased with a close stop if you choose to.  Some stocks we have been mentioning are (AGCO, ELY, IDCC, LL, LVS, RNET, WMT).  LL just completed a Back Up To The Creek and immediately went to new highs, and RNET could be looking at a Back Up as we write this.  LVS just has a spring and a test and looks poised to move higher.  Buying springs in uptrends is normally a well rewarded strategy.

The Force Index closed higher for the week and is registering a negative -195 which is actually the least negative we have seen this indicator in weeks.

We are still holding a few short positions and look to cover on a deeper correction.  We also have a few long positions and looking to add if conditions warrant.  As we had stated last week, we have found this market extremely challenging and looking for small positions with close stops until conditions clarify.

We continue to look for stocks that are outperforming to the upside, and could lead us higher after this correction has run its course. Stocks that are having normal reactions, or preferably back up to the creeks.

 
The bond market was flat for the week.  We are standing aside.
For those of you who signed up for the Free Trading Techniques Course we now have 14 videos lessons in the course.   The current price is an affordable $79.99, and we have had considerable positive feedback from students.
Good Trading,

Todd Butterfield