Thursday, September 24, 2009

SRS Equivolume Stock Volume Distribution Projection


The 3 blue boxes represent periods of consolidation for SRS. The width of these boxes represent the volume of stock (i.e. number of shares) traded during each consolidation. A relatively flat stock price, Aroon patterns (parallel Up/Down lines moving downward) and a flat Rate Of Change confirm that these were periods of consolidation. For each blue box, there is a green box of similar width. These green boxes represent the same number of shares being distributed by the buyers as SRS's price rises, and as the NASI and Nasdaq falls. The width of the blue box is a rough predictor of the volume of ultimate stock distribution in the ensuing SRS rally. The latter can be equated with how long the SRS rally will run. The last blue box may not get much wider, since it seems that the last SRS consolidation may be associated with the top of a Nasdaq head. The postulated NASI "megauptick" may represent a "head." Any run up in Bear ETFs may be lucrative, but short lived in the near term, if the Nasdaq is just forming a head and "needs" to subsequently form a double right shoulder.

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