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The greater the money supply the higher the stock market...
Compare the Weekly $TRAN chart with the 90min TZA chart below. Both charts displayed a run-up rectangle followed by a downward channel with alternating olive & yellow ovals. The $TRAN channel (pink lines) followed an orange upthrust oval (Big boys driving up price to suck in buyers at end of run) and a green stopping volume oval (skier slamming on brakes). $TRAN broke through the trend line (purple oval) and then back-tested. The TSI & Demarker have bottomed for now. This consolidation has occurred on typical low volume.
From Hot Option Babe blog:
ReplyDeletekatzo7 2 hours ago
Just saw this.
http://www.screencast.com/users/katzo7/folders/Jing/media/bb542fc9-7dca-48dc-8853-fc9d8047cf74
And this. From Bulkowski "Pipe bottoms are excellent performers in a bull market, second only to high and tight flags. They have a low break even failure rate and high average rise. The bad news is that they appear on the weekly scale, so the delay buying in can be costly. Nevertheless, you should wait for confirmation before trading this and other chart patterns." I am not saying we are in a bull market but the correction may have just been pushed out.
http://www.screencast.com/users/katzo7/folders/Jing/media/618b81af-104c-4e70acb9-4ccd802869cf
(Edited by author 1 hour ago)
Instigator928 0 minutes ago in reply to katzo7
Nice pick-up of the Pipe Bottoms. For the $TRAN: the first pipe was a low volume Falling Volume Bar (Big boys aren't selling) rather than high volume Accumulation Bars...Therefore, don't expect the market rise to go too far.