Thursday, July 13, 2006

Don Wolanchuk

From the best market timer I know, posted Thursday AM:

CLX students....if you notice......in the Sept SnP large contract there are 2 gaps left open under the market ...1258 and 1241.......the 1258 gap is rite at the 75% retrace off the swing low of 6/28 and the 1241 gap is just below the 78.6% retrace off the 6/14 low.....clx offsets will turn favorable on both the 30 and 10 day around monday or tues...sentiment on this 2nd wave pullback should get white hot....notice the equity pc ratio was at its highest in many moons yesterday 84% acually hit 102% at the opening.....and vix pc ratio at 7% the lowest ever....so far however the 38.2 retrace off the 6/14 low at 1266.66 tho penetrated has not seen a close below it. For a change we are seeing down gap openings ...a plus......and there are now gaps above the market...a huge plus.....1282.30...1288.20..1299.10 ...1305.90...1322.90....and 1339.20


A

10 comments:

Anonymous said...

hi allan,
i'm a new reader to your blog and find it extremely well written and full ofgood ideas. my one question however, is, while reading some of the comments left behind by your readers i noticed something about them getting buy recommendations from "SALLY,"..is that a suscription service/ website/ person??
J.

Anonymous said...

J - sally is an alert system emailing subscribers of insider buys. it is only available on this blog (as far as I know) if you are interested, send Alan a note, Subject, "Subscribe" at SallyInsider@fastmail.fm.
good luck-N8

Allan said...

J, You should be able to do a "Search This Blog" for word, "Sally" to get to the her description and how to get on the email list if its something in which you may have an interest.

A

Greg Reiman said...

Hi A:

Not sure I understand Wolanchuck's comments.

Am I to read him to be saying that the bearish sentiment and other technicals he mentions is a prelude to an upside rally next week?

I jumped in 100% in the past two weeks and except for FRG and IDIX am getting killed. My gut told me to bail yesterday early (should have), but because I felt strongly that we would rally through next week, I hung tough, to my regret. We could still rally into next week, but I am kicking myself today.

Greg

mOOm said...

I'd read Wolly as saying that the lower of those two gaps will be taken out likely on Friday and after that there will be a strong rally. My own TA models indicate the same thing though not based on gaps or CLX or whatever.

curt504 said...

Hay, I'd like to buy a car too, but my current account is negative. Good to hear Allan's doing well!! I'll enjoy the new wheels at a distance and let be my future reward.

I'm in a personal trading style training program. I'd like to soon say like Allan that my trading style works the same in up or down markets. I can't say that today and am open to your thoughts.

Farber predicts mostly down: http://www.moneyweek.com/file/15304/which-asset-prices-are-heading-for-a-correction.html

Anyone's thoughts on why Farber's analysis differs from other smart analysts?

How to profit from a down market? Since I have to trade from work, I'm not sure naked calls/puts on the S&P makes sense unless they're 6 months out??

BTW: what about ptsc, nnvc, cwpc? I don't want to sell at the bottom. I am holding against the trend, not smart for traders unless loosing money is your goal. :)

Tnx curt

Anonymous said...

With the type of trading you seem to do; I'm surprised you put so much time, energy, and effort into the mega macro picture. Why are always quoting the perma bulls?

Allan said...

With the type of trading you seem to do; I'm surprised you put so much time, energy, and effort into the mega macro picture. Why are always quoting the perma bulls?

Not much time, cut & paste & infringe. As for the perma bulls, there's enough doom and gloom out there from other sources, just trying has to provide some balance.

A

curt504 said...

Guess this pharma tip:

As seen on one of those 5 page ads. It seems fun to guess these co's. You guys are pharma followers and might know this tip.

Buy this stock now and be fabulously rich in a year. :) Need more tips?

Forbes says: recently rated the firm's heart attack drug as one of its top 10 new cardiovascular drugs to watch - and predicted annual sales of up to $1 billion! They have in development: "magnificent seven" drugs for seven major ailments: heart attack, diabetes, obesity, schizophrenia, atherosclerosis, asthma and stroke.

For sale: clinical trial design that's 90% more focused. (this seems novel??)

For sale: protection from drug liability: protecting drug companies from potentially hundreds of billions of dollars in product liability lawsuits by minimizing the likelihood of side effects. One-of-a-kind genetic database is the key to this profit driver.

The last asset does sound very interesting if this is possible?

What company is this? I want my 330xi too. :)

curt

Dick said...

WOW, I see what you mean, he has purchased $20 million in stock. He isn't involved in some kind of hedge is he? I recall reading that they have some kind of convertible financing.