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 (180)	7/21/2004 4:23:04 PM
From: coferspeculator	Read Replies (1) \| Respond to of 14340

Today the market had an intra-day failure to the upside and finished at it's lows with a significant spread on higher volume, finishing the day in a neutral condition. Today's intra-day failure was the result of heavy supply meeting demand. Early in the day both speculators and investors started selling the market. As the day progressed this pressure to the downside increased significantly. The character of the action confirms the pressure that the investors have produced for nearly three weeks. The failure of any real bullish activity from this group for more than a day within this period offered evidence that any uptrend would likely be limited in range. Trading against a confirmed SOW from this group should never be considered except on a single issue basis. Few stocks can buck the trend of this group over any period of time and no major market average will ever do so. Until the pressure from this group eases or reverses care needs to be taken with any long positions and careful review of any positions currently held on the long side needs to be made. Today the market provided evidence to support the theme of a markdown in tech that as been mentioned in the past two weekend reports. While the non-tech issues still haven't offered conclusive evidence that the markdown period has begun, it is very likely that a test of the lows of the year will be put in. If the test is on high volume with increased spread then a #1 spring is likely and the back up or test will be the second point of the beginning of a probable downtrend and markdown period. Should this occur then the markdown of both groups would be in harmony. I'll offer potential targets for this scenario over the weekend. Suffice it to say that the the halfway point from the highs of the year and the lows from March '03 need to be looked at. Jumping to the conclusion that this is the case shouldn't be done based on the recent actions, however. As mentioned in this past weekends report, I still believe that we will test the bottom of the range. A rotation from the tech issues to the non-tech area may assist in holding prices at this level and offer hope that the trading range that started earlier in the year will remain in place.