Issue 1,751 – Copyright, 2024, by Wyckoff AM Trader
The eater while eating is being eaten…
Yesterday's trade was more of a spring of Monday's low. The duration of this month and the next month are some of the most challenging months for a trader to trade. Policitcs. Kids, Vacations. Did I mention Politics?
Monday's upthrust at the 5669 set into motion a near 100 point decline as traders were saying; "It's only a 100 points back to the top!" Price found it's low around 2:00 pm Monday and then chopped during Globex.
Todays' open was a spring of that low. Sure, I could have gone with S1H day but had no real good reason except suspecting price may flip so I just go ahead and flip it. With that started, yes, the day was flipped to S1H day.
On that magical time of 9:45 am the bulls step in and start to flip the trade to the buy side. Bulls take back the close, the half back, and the daily pivot of Mondays' range.
The eater while eating is being eaten…
Not only was it a spring but it was a floor trader pivot of 5615 handle. A 90 minute rally ensues. Then the next move which also lasts just over 90 minutes is driven my the TRANS and INDU as it give us just over half of the ground gained on the rally.
The eater while eating is being eaten…
We are in the SLOG now and frankly no trader rally cares to take price higher. So the bulls tag the current day's high and starts to drift amisly back down.
The close. Where does it close? You guessed it. Just off the daily pivot of 5643. Just under the 5650 handle I referred to the previous two days.
The eater while eating is being eaten…
I try to keep this in mind while trading at all times during the day. Especially if/when I watch the DOM. It means. Life is not linear but circular. As we trade, we want the rally to continue. We want to see price get back to that July high.
Look at it this way, as a system nears the zero reference it entryps and folds into itself. Everything gets wiped and it all starts over.
As the offer is lifted, the bulls are eating the supply. As the bulls keep eating the supply not only resources but capacity is eating the bulls. The eater while eating is being eaten… That's why price has to fade back.
We then to think of a circle as one series of 360 degrees but really, it's two cycles of 180 degrees. While one form is ascending the other is descending. It's during this zero reference line that the viscipi of change is born. Wyckoff called it distribution and accumulation.
The cause and effect.
Think of the clock as a series of waves that influence the bulls and bears efforts. The highs and lows. With one side of the sine wave belonging to the bulls the other side to the bears. A circle is 360 degrees. One half of that is 180 degrees. One complete rotating is 360 degrees.
Think of the bulls as being on once side of that circle the top and the bears on the other side the bottom. As the bulls rally the stock, the bears are descending. After the bulls reach the top whether is the day of the week or month, then they start to descend. As the bulls start to descend, the bears start to ascend.
The eater while eating is being eaten…
Now if you like you can also fit this into the political infostructure but if you do you need to understand nothing changes. They had the same situation in golden age, silver, bronze and iron. Only in 2024 the media has replaced the Brahmin and the Vasihya has been replaced by the corporations. The Shudra they are always (common working may) you can find them on the bottom…
Jessie L himself say; "There is nothing new in the market but each day the market teaches me a new lesson!"
PROSE and THE NUMBAHS
Good morning. Today is SERIES S2L with the spill up.
News: EIA Petroleum Status Report at 10:30. All times EST.
Last night: Price opened down and attempted to test the mid day low. Bulls step up and raise back up to the high and the close.
Edge: I'm seeing supply at the 5650 handle. Is it enough to hold the bulls back? We got GDP and PMI this week and soon Labor Day. Traders may be checking out getting ready for the holiday. (I said that yesterday) Looks like some supply checked the market just at the 5650 handle and sold off down to the 30 handle. This day could flip to the bullish side if the bears to not press within the first hour or so. I'm going to double down today.
Everyone all a twitter waiting on not Twitter but Nvidia. Seems it projected to be about 52 percent volatile in the trillion dollar club. Expectation is after the close. One by one's and two by twos. It's promising to be a wild ride!
Globex: 20 plus handle trading range on 108K volume.
R2 5673.00
R1 5658.75
DAILY 5635.00
S1 5620.75
S2 5597.00
WEEK 5627.00
Cycle Bias: Favored to the bull.
Tone: VIX trading at 16.15
Shape of the day: Potential for a how deep is your three and a dog leg from lunch high to mid pm low.
Honing: Spill up, AM LOW, (NO MID AM), lunch high, mid pm low, LAST HOUR HIGH.
The clock is used to time your entries and exits. Position long at the lows, exit at the highs, get short at the highs, and buy-in at the lows. When the trend is in, WB's clock is your friend!
Your edge is a series of trades, not just one trade or one day.
Dates: August 19 Sturgeon Moon 2:26 9.m. Fall Equinox September 22 8:43 am (all times est)
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