Archive for October, 2015

1000th letter…

Posted on Oct 27, 2015 by .

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Caausation or correlation? As we prepare our 1000th letter some serious theoretical and operational work needs to be done on our cornerstone system – Magee’s Basing Point Method. Or perhaps just a serious audit.

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Engraved invitation…

Posted on Oct 25, 2015 by .

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1023spx

http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=6&dy=0&id=p38955316076&a=266398464

You have heard of the famous market engraved invitation.  Here it is in the flesh.  Strong buying signals with the gap on top of power bars.  We bought  additions to our SPX position and will buy more next week.

These invitations were scattered throughout the market.  Here QQQ:

1023qqq

http://stockcharts.com/h-sc/ui?s=QQQ&p=D&yr=0&mn=6&dy=0&id=p10072938397&a=266692690

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The 1001st letter…

Posted on Oct 22, 2015 by .

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1022spx

http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=6&dy=0&id=p38955316076&a=266398464

While the 1000th letter is in preparation this comment  is in order.  What we have conjectured as a zeta wave looks strong enough to be showing buy signals.  We will be adding on to our S&P positions.  At the same time  we  should be expecting a modest downwave here.  Contrarians can’t stand a long run such as we have seen here.  What one does in these cases is scale in (three to five tranches).  Buy now  and double up on the pullback and then increase the position when the high is exceeded.

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Waiting for rain (or Godot) …and the 1000th letter…

Posted on Oct 17, 2015 by .

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1016spx

http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=6&dy=0&id=p38955316076&a=266398464

Like a man playing with a cobra we have been watching the market waiting for it to bite us.  This is not our usual posture.  We are never deterred from a trade by the prospect of a small loss.  It probably has something to do with the recent experience of being inside a washing machine.  But now, with squeaky clean hair (and similarly scrubbed mind) we think we can make some sense  of the state of the market.

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Market structure becoming clear…(apparently)

Posted on Oct 08, 2015 by .

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1008spx

http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=6&dy=0&id=p38955316076&a=266398464

Eight days of constructive activity can salve a lot of hurt feelings.  It can also do a lot to repair the chart.  In fact we can now see some recognizable structure in the market after being bounced around like a pinball.  We tried early on to find an a-b-g-z pattern after the flash crash.   Now we think we can see it and have marked it in the price action and at the top of the chart.  Meaning we think we are in a zeta wave now.  As almost always we see the surge of prices across the trendline as a buying signal, and we have done that in our personal accounts.

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