Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Timing the Trade the Wyckoff Way -- Ignore unavailable to you. Want to Upgrade?

To: coferspeculator who wrote (100)	5/25/2004 4:14:55 PM
From: coferspeculator	Respond to of 14340

Today the market experienced an intra-day failure to the downside in the morning as it entered a nearly oversold condition for a second time in four days. This double dip with speculative pressure showing upside action for the past four days resulted in demand re-entering the market on a wider spread with increased volume to end the day at the highs in a neutral position. For nearly two weeks the market has been in a spring condition and today it rallied through both the short term oversold line as well as the resistance line of the past two weeks trading range. While the double dip is not a flawless signal its one that is worth watching and is especially valuable for taking aggressive trade positions. The second dip into a nearly oversold condition within four days with decreasing pressure to the downside as well as increasing speculative pressure to the upside resulted in a rally that is more typical of what often occurs when a positive spring action occurs. While it is far too early to make the case for a move back up to the top of the trading range, the action offered a great opportunity for the aggressive trader intra-day and offers more conservative traders the first evidence for the resolution of the SOW/Spring contradiction that has been in place for the past few weeks. For the aggressive speculator, recognize that being prepared for moves like today provides an entry that will offer in the worst case nothing less then break even speculation. For all others, careful attention needs to be made in the coming days to make sure that speculations are well timed and the risk/reward ratios are maintained. This is still, at best, a short term trading opportunity, so jumping to the conclusion that taking long positions for the intermediate term is probably very risky. There still remains the very strong possibility that this up move will have a meeting of demand by supply and further tests of the bottom of the current trading range will be made. Patience and caution are advised before rushing in to new long positions.