Created on: 5/6/2011 10:20:04 PM GMT Last Update: 5/6/2011 11:35:08 PM GMT Posted by: RTT
WARNING: This entry is 1329 days old. It may contain broken links, out-dated or misleading content. Please read on with caution.
Richard Wyckoff composite man wins again with the silver etf (267)
Did silver make you rich in 2011? I have read many comments on the web of folks who sold early or late, thus claiming the market timing of silver an impossibility, and some are throwing in the towel on technical analysis and solely really on fundamentals. If so that is exactly how the Richard Wyckoff composite man wants your state of mind to be in, confused, destroyed and lost. Richard Wyckoff composite man wins, the public loses . Get smart learn wyckoffian logic.
Composite man defined: Richard Wyckoff’s name to the total sum of the more informed forces that move the market. (RTT: In modern day marketing terms 'the combined group of smart money that moves markets', on this site we sometimes call him Mr Market.)
To learn all you can about Richard Wyckoff you can start here: Richard Wyckoff method.
Just knowing the basics is enough to keep your profits on great trades. One Wyckoff technical rule is that periods of extreme volume is a warning that supply is overcoming demand, and eventually supply will swamp demand and prices will fall. The most recent example of this can be seen in the silver ETF at the beginning of May 2011.
The composite man accumulated silver etf under $20, marked up prices to $50, but on the way up started to sell to those that came late to silver trade above $40, and they did so aggressively, you know this to be true as the daily volume spikes are extreme after $40, this is the composite man is selling to Joe public or the not so clever mutual fund manager. This happens in every market, and your education should start with the great itulip bubble of 1637 when a single flower sold for the value of an average house!
Does silver sell off mean the bull market is over, NO. It just means that silver may get to $250 via $25 before all is said and done. If you want to be on this chess board you have to learn how to read the game while it is in play. Learn Wyckoff, learn Hurst cycles and learn the best William Gann gave to the investing community (ie Gann Angles)
In our view Wyckoff methods mixed with Hurst and Gann logic gives you all the 'special forces' technical tools you will ever need to master security chartology. This does not in anyway discount the need to understand the ebb and flow of fundamentals within the market.
See our previous posts on silver etf for more.
Silver at the Hillary step of a massive peak
Timing Silver with 100 percent accuracy
Silver can swing your wealth between rich and poor
Click for popup. Clear your browser cache if image is not showing.
NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net
..“The only way you get a real education in the market is to invest cash, track your trade, and study your mistakes…. The examination of a losing trade is tortuous but necessary to ensure that it will not happen again.”..
.."Markets are designed to allow individuals to look after their private needs and to pursue profit. It's really a great invention and I wouldn't under-estimate the value of that, but they're not designed to take care of social needs"..
We at readtheticker.com hold the view that a mix of stock chart technical analysis, Richard Wyckoff, William Gann and Jim Hurst methods plus market fundamentals allows the investor to formulate a very sound market opinion. These attributes are mutually inclusive and must be weighted equally before investing or trading in any Stock, ETF, Currency, Bond, Commodity, CFD or Mutual Fund
Search Blog for Text:
1. Tips, Tricks, How Toos
2. Blog Performance Review
3. List of the best blog posts
Can you make a living trading Springs and UpThrusts?
Saudi crude oil target is $40, chart agrees.
This chart shows a extreme sell down, time to watch this security daily
Extreme moves in the USD do not hurt gold
Forecast with the Period Scan
Gann Wyckoff Hurst(74)
Metals and Forex(89)
Swing Trade Idea(36)
Winners and Losers(7)
RTT ST Model(1)
Symbols used in blog
AAPL AORD APPL AUDJPY AUY BAC BANK CAT CRB CRUDE DD DIA DLTR DXY EURUSD EWA F FB FDX FXA FXY GDX GE GILD GLD GLDFXY GOLD GOOG GS HL HSI HYG INDU IWM JJC JNJ JNK MCD MCYC MMI NEM NYSE PBS PCLN QQQ RGLD SBUX SLV SLW SO SOX SPY TBT TLT TNX TRAN TYX USO UUP WMT XAU XLF XLP XLU XLV XLY XOM YHOO