Hi MikeGolden,
I'm sure you know how to do the Basic YoYo play: --- in a Downward motion, release the YoYo for the DROP; then, as the YoYo spins at the bottom, tug the string and the YoYo comes back Up for the YoYo CATCH.
Say, in a 2-week YoYo play: --- an AMAT DROP consisting of one or more days of decline (days of lower Highs and lower Lows); ... followed by an AMAT CATCH consisting of one or more days of advance (days of higher Highs and higher Lows).
Where there's a YoYo DROP, there's a YoYo CATCH. The CATCH may be higher or lower than the point of RELEASE (the point of CATCH in the previous YoYo Play) --- depending on the Mood of the market.
An 8 to 11% DROP (per cent change from the point of RELEASE to the Bottom) is ideal for a Higher-Steps Fast Paced Mode; a 12 to 20% DROP, for a Slower Paced Mode ... A 21 to 25% DROP lands AMAT in a Landing or Resting Mode like what happened recently for 4 months --- from February's Top to June's Bottom. A 30% DROP is still OK for AMAT if the stock bounce back Quickly as if the Traders didn't mean it to trade the stock that low ... but if the stock stays longer down at -30% soon the stock goes down -40%, -50% and worse ... and suddenly we are in a Bear market that last for a year or so ...
(Like Fundamental and Technical Analyses , my YoYo-Staircase Analysis uses the PAST and PRESENT to guess the FUTURE ... but mine goes further by using Sentimental Analysis of the Market. This Sentimental thing gives me a Peek farther in the Future. For example, I don't need to look at so many market indicators like Advance/Decline Line, OTC, S&P, etc, etc. to know what will happen in Summer or the next Summer. The SOX and the DOW 30 and AMAT are good enough indicators for me). |
