Wyckoff analysis of this essential commodity is currently revealing. The trend of Crude Oil has a major influence on not only most sectors of the stock market, but it is also a key cost input for the production of almost all goods, services, and other commodities. Since March of 2022, the general trend of Crude...
Are the major stock indexes under Accumulation? If so, we Wyckoffians would expect an important Markup (uptrend) to follow. Accumulation is the process of large interests (known as Composite Operators) stealthily Absorbing shares of stocks they expect to appreciate during the subsequent Markup Phase. Accumulation can take an indeterminant period of time to form. The...
Mega-Cap Growth stocks have led the stock market weakness on the way down in 2022. They have also lagged during the 4th quarter rally. This weakness has been a drag on major stock indexes such as the S&P 500 and the NASDAQ Composite. With the recent rally phase well underway could the Mega-Cap Growth stocks...
On rare occasions stock indexes become delicately balanced between two profoundly differing scenarios. This currently seems to be one of those junctures. The most recent Power Charting TV episode explores this existential moment. Stock indexes have been in a mega-bullish upward stride since 2009. The pace of this advance has been illustrated by a classic...
Richard D. Wyckoff, the Master, in his own words; and his quest to understand what propelled stock prices. He observed large interests conducting campaigns of a magnitude that resulted in trends lasting for months and years. As a young man he studied these Composite Operators (C.O.) and how they would stealthily conduct campaigns. He developed...
Determining the stride of an uptrend or downtrend is an essential Wyckoff technique. The stride of a trend is often set early in that trend and then prices can adhere to that pace of advance or decline for the majority of the bull or bear run. Trend determination techniques have been covered often in this...
In May and June oversold conditions in the major stock indexes developed. Internal breadth and sentiment measures reached notable extremes. Keeping in mind the quarter-end effect, Wyckoffians were on the lookout for an acceleration of the downtrend into a ‘Selling Climax’, which arrived in mid-June (quarter-end). Following a series of selling panics (in May and...
When studying the markets chartists can tend to become myopic and close in on smaller and smaller timeframes (certainly that is the case for this Wyckoffian). Meanwhile, the tsunami of monster trends can engulf portfolios with unexpected reversals. A powerful antidote to this vulnerability is awareness of the major price trends. When a large trend...
Trouble for the S&P 500 Index became apparent last September when an outsized decline arrived. Downward volatility with volume expansion (presence of Supply) characterized the decline into October, touching the demand trendline. Bulls were relieved by the near vertical rise into November which included a new high in the index. Two attributes of that rally...
Join Johni Scan and me for Monday’s (2/28/2022) “Your Daily Five” where we focus on Distribution and Re-Accumulation characteristics. Both begin in nearly the same manner but conclude very differently. A Re-accumulation is a range-bound condition that forms after an uptrend. It is a pause or preparation phase for a fresh new leg of a...