Riding the Wyckoff Wave

[DbPhoenix]

As for the top-down approach to selecting stocks, I don't know how many people still do this since it's so much easier nowadays to scan for stocks using indicators (e.g., MA crosses) or candle patterns. But even if one takes the bottom-up approach, it still pays to check the various groups of which the stock is a part to see if he's out there all by himself or he's got lots of company.

At the very least, one ought to keep track of what's going on the sectors, even if he trades only index futures. There are only nine of them, after all (not counting Telecommunications), and keeping tabs on them has become easier than falling off a log since the invention of ETFs.

Reviewing these, it is clear that Technology (XLK) is weak. It may be bottoming, and it is showing signs of accumulation. But, for now, it's weak. If we go to BigCharts and click Technology, we get a list of the major groups in that sector, in this case, 2. If we look at those charts, we see that Hardware and Equipment is a nice match:

Under Hardware and Equipment, there are two subgroups that are also weak, Eletronic Office Equipment -- which is forming a hinge -- and Telecommunications Equipment:

Now if we go to each of these subgroups, we can get a list of all the stocks that belong to that particular category. Unfortunately, BigCharts doesn't provide scanning by price or market cap, so the universe of stocks is often broad, to say the least. But it's free. And if you scan the list for companies that you've actually heard of, their market cap is likely to be acceptable, at least at this level of screening.

For Electronic Office Equipment, we get this prospect (the purple line is the group):

Pitney had its problems all at once and has been trading sideways for nearly six months. Perhaps its downside is limited. However, it's also forming a hinge:

For the other subgroup, Telecommunications Equipment, we get this prospect, one that most likely everyone has heard of:

And this one has some possibilities:

At this point, of course, one then goes on to analyze the individual stock charts. But for now, this gives you an overview of the process.

Clearly, you have to love doing this. Even if you scan for stocks bottom up using indicator or candle scans, you have to love doing it. I stopped loving doing it long ago, the day I discovered eminis. And I haven't researched a stock since.

But for those of you who remain bright-eyed and bushy-tailed and still love doing it, this is more or less the process.

.

[cantana]

	Quote:	DbPhoenix
	So it's hers? Excellent. Thanks for posting.

Doh!
All this time I've been reading the first line as "discussed with Justin Mamis"

[DbPhoenix]

	Quote:	cantana
	Doh! All this time I've been reading the first line as "discussed with Justin Mamis"

My copy of Nature of Risk is packed away somewhere, so I can't referee. But they think alike, so.....

[gary1958]

Thanks to all on the info for T (Theresa) Lo.


Gary

[tune]

	Quote:	cantana
	( I never did find the Mamis news letter)

www.mamis.com

http://www.mamis.com/samples/letter_sample.pdf

[cantana]

	Quote:	tune
	www.mamis.com http://www.mamis.com/samples/letter_sample.pdf

Thanks Tune,
I found that one during my search.

If I'm not going completely nuts, which is debatable, a few years ago, well maybe 4 years ago, humm, couldn't be five could it? Well anyway, there was a time when Justin's news letter was released on the internet, I believe it was two weeks after it was delivered to his paying costumers. So it was kind of dated by time it hit the net.

It might well have been that I just happened to catch a "tease" marketing ploy, or I happened onto someone who was a paying receiver and released it on his own after two weeks. I don't really remember.

So basicly I was looking for fairly current freebies.

[gassah]

I guess this board is okay for this since Wyckoff encouraged swing analysis. I'm wondering if this is a bullish chart as it comes down to support. It seems to be struggling down; it went up more easily (label "1"). It's taken more bars to come down yet it's much higher than the 2/20 low. Concepts borrowed from McLaren. His ebook is a good read, IMO. http://www.mclarenreport.net.au/articles/

nic

[gassah]

	Quote:	gassah
	Concepts borrowed from McLaren.

I think he suggests waiting for a ST higher low in this kind of situation.

[DbPhoenix]

It also depends on timeframe and bar interval, which takes you back to Dow (where would Elder be without Dow?). Using the NQ for an example:

Notice we are not only finding resistance at the August swing low, but all this is taking place in the same zone we were in 18mo ago.

And for a very short-term example:

Of course, many people will say Yeah, well, I've seen charts like this a lot of times but so what? What do I do with it?

What one does with it is note the differences between the length and slope of the swings. In this case, it tells you to focus on the downside rather than try to fight what W called the "stride", at least until the character of these swings reverses.

[erierambler]

	Quote:	DbPhoenix
	Of course, many people will say Yeah, well, I've seen charts like this a lot of times but so what? What do I do with it? What one does with it is note the differences between the length and slope of the swings. In this case, it tells you to focus on the downside rather than try to fight what W called the "stride", at least until the character of these swings reverses.

Kinda reminds me of Magee, speaking of the Greeks, "nothing in excess", "measure in all things". In otherwords , don't get too caught up , but pay attention.......
erie