Stock Market Tools (14) - Wyckoff's Schematic and Application

This is a very short write-up as the diagrams attached are self-explanatory for those who are ready Think and Get It....




The follow two Wyckoff Schematic diagrams are copied from the web...
The first one signify a typical "Distribution" phase of a stock/market...
While the second diagram added the "Typical Volume Patterns" of various phases....

Figure 1. Wyckoff Schematic on "Distribution" Phase

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Figure 2. Wyckoff Schematic on "Typical Volume Patterns" on various phases.

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And, for those who had studied Wyckoff material would know that he would not trade without Analysis the "Internal Condition" of the strength of the stock/market by Tape Reading...  Here are some example of integrating the "Tape Reading" result with the Price Charts:(Click on the Chart to Zoom In).

The Art of War said: “兵马未动 粮草先行.” (Before the troops and horses start to move, food and fodder must go first.)

As translate to stock market, before the Price Trending in a Direction can be developed, the Money Must Flow in that direction first.....

In the following charts, the upper pane shows the price candlesticks, while the lower pan shows the MONEY movement direction (of Strong Hands).



Figure 3:  The "Internal Condition" of the stock is Weak, as money flow out from strong hand.

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Figure 4: The "Internal Condition" of the stock is Weak, same reason as above... Will see. :-)

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Figure 5.  Not all the operation of a stock follow the "Typical Schematic", at times it depends on the overall market condition too.  Zoom in to see it clearer.

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Bless You
KH Tang
------------------------------------   Added on 1 Aug 2015   -----------------------------------

This chart is a follow up Fig 4 above...  What's next? Will See. :-)

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This is an interesting one...  It shows a serious divergence at this point of time, will see. :-)
(NOTE: Tape Reading is not for Short Term Swing Trading! It merely show the Internal Condition.)
Click on the chart to zoom-in.

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----------------------------------------- Added on 9 Aug 2015 ---------------------------------------
Here are somethings very interesting...
Let's look at the Major Oil Companies on their "Tape Reading" Status as of now.  Doesn't it tell us that the strong hands knew what's going to happen way early than the public?!

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It would be interesting to see, though as a hindsight, what does the tape reading of some Germany companies - like Volkswagen (after the emissions scandal) and their banking...
(Note: There are a few Stock Exchanges in Germany, and the stocks listed in all of them.  So, the value show the TRENDING only).

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Volkswagen

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Deutsche Bank


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---------------------------------------- Added on 19 Oct 2015 ----------------------------------------
It would be interesting to see what happen to those that have accumulation on the tape. :-)

AMD Tape Reading.

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Interesting!
Is there some new technology that can replace Cruel Oil???

Games that People Play (5) - Fueling a Giant Stock Market Bubble

This post is self-explanatory...
Click on the link for more details...

Deutsche Bank "Raises The Warning Flag": 
What The Most Important Chart For The Market Reveals

Entire five year market rally has been due to the Fed

Is the Fed Fueling a Giant Stock Market Bubble?
(Yes, of course)


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Other Games that People Play


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Games that People Play (4): Push "RESET" Button on World

Good day,

I came across this very strange news about few weeks ago...
It was talking about Pushing the Reset Button or World Economy!

And here are the sources:
1)  World Economic Forum website: IMF Director, Christine Lagarde, Publicly Talks About Global Financial Reset and Recovery

2)  USA Today

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So, what does it mean by the term RESET when these people discussing about it?!

In the first link above, World Economic Forum Website:

In the video, 05:40min to 11:15min

Chirstine Lagarde, Managing Director of International Money Fund, was talking about the 3 Rs of global economy, which stands for  1) RISK,  2)RECOVERY & 3) RESET.

And, she further described there are three aspects of RESET:

A) Monetary Policy need to be reformulated

B) Financial Sector Reform 

C) Global Structure Reform 

In the second link above, USA Today Link:

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Klaus Schwab (Founder of World Economic Forum) said: "We need to push the reset button. The world is still much too much caught in a crisis-management mode. We should look at our future in a much more constructive and strategic way. That is what Davos is about."

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As usual, these people in the financial world always creates term that the meaning are so confusing to the public, such as Subprime Mortgage for substandard investment fund, and Quantitative Easing for "printing more fiat US Dollar", etc...

As I did more research... I found that these documentaries, "Hidden Secrets of Money Episode 1 to 5"  by Mike Maloney,  seem to bridge the gap and explain what the term RESET is...

Hidden Secret of Money Ep 1 - Currency vs Money

Here are the links for the 4 sub-sequence Episodes:

Hidden Secret of Money Ep2 - Seven Stages of Empire

Hidden Secrets of Money Ep3 - Death of the US Dollar

Hidden Secrets of Money Ep4 - The Biggest Scam In The History of Mankind

Hidden Secrets of Money Ep5 - When Money is Corrupted

Well, though these videos do contain some sale speech (you may ignore that), the contains of the video are very educational!

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In fact, there are some reset activities going on.

Venezuela sharply devalues its currency...  start with 50%.  and now... 88% as shown:

Relevant Info:

Site:
There is a interesting site,   GLOBAL CURRENCY RESET.NET  , that put these information together.

Books:

Code Red: How to Protect Your Savings From the Coming Crisis

The Big Reset: War on Gold and the Financial Endgame

The Money Bubble

The Death of Money: The Coming Collapse of the International Monetary System



Well, it is 100% sure all currencies will be reset like the kingdoms and dynasties changes in the history... Just that NO ONE would be able to predict EXACTLY WHEN.  So, it give the Gurus a chance to continue to predict until it comes. :-)

Nevertheless, awareness is good.

-----------------------------------------  Added on 19 Apr 2014 ----------------------------------------
Some relevant books on this topic:

---------------------------------       Add on 16 May 2014        --------------------------
Yet another perspective:

Home

Games that People Play(3):- Strategical Horse Racing by SunBin

Case 1:  Happened before 320BC:

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孙膑赛马:

战国时候，齐国大将田忌很喜欢赛马。他每次和齐威王赛马，都要押上重金赌输赢。他们把各自的马分为上、中、下三等。比赛时，上等马对上等马，中等马对中等马，下等马对下等马。由于齐威王每个等级的马都比田忌的强，每次赛马，田忌都以失败而告终。

一次，田忌又比输了，正闷闷不乐地离开赛场，他的朋友孙膑对他说：“从刚才比赛的情形看，齐威王的马比你的快不了多少，下次比赛，你只管下重金和他赌输赢，我有办法让你取胜。”田忌疑惑地看看孙膑：“你是说给我换几匹好马吗？”孙膑摇头说：“不是。”田忌知道孙膑足智多谋，看着他胸有成竹的样子，没再多问。

等到比赛那天，孙膑向田忌面授机宜说：“第一场，用你的下等马去同他的上等马周旋；第二场，用你的上等马去对付他的中等马；第三场，你用中等马对付他的下等马。”结果，第一场比赛田忌输了，第二、三场比赛赢了，最终以2：1获胜。这下，齐威王目瞪口呆，只好眼睁睁地看着田忌得意地拿走了自己的千金。

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Brief Translation:

Strategical Horse Racing by SunBin:

SunBin(孙膑; died 316 BC), grandson of SunTzu(孙子) who is famous for his "Art of War", was a military advisor who lived during the Warring States Period of China history.

During that time, there was a military general of Qi State(齐国) - TianJi (田忌).  TianJi often invited to have horse racing competitions by his king - King Wei (齐威王).  Everytime, they both put heavy bet on the competition.  The competition consisted of 3 races.  So, they used their first class horses for the first race, second class horses for the second race, and third class horses for the third race.   Because King Wei had faster horses in all the three categories than TianJi had,   TianJi had always lost.

Once, SunBin was a guest of the Tianji and invited to attend the race.  Again, Tianji lost all the three races again and felt very upset.  SunBin spoke to Tianji:"I noticed that the horses that King Wei has in each category is not much faster than yours.  Next time, you can smiply put heavier bet, and I have a strategy for you to win the competition."

Wait until the next race, SunBin asked TianJi to use his 3rd class horse to race with KingWei 1st class horse in the first round.  TianJi's horse lost by far distance in the first round.  In the second round, SunBin used TianJi 1st class horse to win KingWei 2nd class horse.  And, in the final round, SunBin used TianJi 2nd class horse to win KingWei 3rd class horse.  KingWei was shocked to see the result and TianJi won BIG TIME during that race.

Case 2: Happening Now:

Pictures from Smart Money Magazine.

It was an old conspiracy that USA would keep most of their crude oil reserve untounched while promote gas-guzzler vehicles to use up other countries crude oil first....  Then, when it come to a time that other countries oil reserve is about to finish, they would anounce they just discover that they have many new oil fields at home...

Now, lets look that this month issue, August 2012, Smart Money magazine feature story: The Return of Fossil Fuels.  The headline says:

 "Enormous new oil and gas discoveries under American soil are having a game-changing impact on the entire economy - affecting everything from what we're putting in our portfolios to what we're parking in our driveways.  How to play the new energy boom."

So, is this news just a coincident?  Or, just another strategical game practised from The Art of War?

May be the above queations are not important.  What important is the implication?

So, US has surplus in their food supply, water supply, energy supply and strongest military advantage...  Why should they care about debt?   Therefore, print money and be happy.

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<HOME>

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Games that People Play(2):- Work Behind the Scenes

The world economy and major events that are happening all around the world seems like following the plot of the story in the book - Atlas Shrugged - in the final section.

There are many people complain about their current president can not fix the economy problem effectively.  Some could look further blame previous term presidents that their economy policies are not sound.

Actually, the seeds of trouble for today economy were planted decades ago while Alan Greenspan was at his position as Chairman of the Federal Reserve of the United States from 1987 to 2006!  And now, all the troubles have grown to their mature state.

 If you were to search in the web: "Who is Alan Greenspan mentor?"  You can find that his mentor was the author of the book "Atlas Shrugged", Ayn Rand, and they have a small circle of mastermind.

If you were to dig further and see who's was backing up Ayn Rand -->
http://www.kt70.com/~jamesjpn/articles/atlas_shrugged.htm

Of course, many people would simply say that this is yet another conspiracy theory...

So, I believe that the best way to keep a secret is to put it up onto the web, as people don't believe any secret can be found in the web.

The following pictures are self-explanatory:

It is Strongly Recommend that you watch the video clip (only 24 seconds) on what 

Alan Greenspan has to say.

You may not believe what he say without watching it!!!

If you have trouble to see the video from this blog, click on this -> link  <-

But, history has proven, it is not necessary that their plan would succeed as human being are most creative under huge pressure in critical time.

 AND

 What Matters Most is How You See Yourself, and not

limiting your own beliefs due to circumstances.

Bless All

Games that People Play(1):- 挟天子以令诸侯

When most people hear that the world is actually controlled by a very few minority people/families who controlled most of the governments in the world... They would simply say that "IT IS IMPOSSIBLE!"

But, in reality, this is not a new concept at all. It happened around the world everywhere. Take for examples:-

In the late Han Dynasty, around 1800 years ago, in China, there was a minister - Cao Cao.

Cao Cao hold the weak Emperor under his control, and made use of the formal legal authority of the Emperor to control the other warlords and force them to comply to his order. In Chinese, it is well known as "挟天子以令诸侯 ". This strategy been repeatedly used in the history. Including the WWII that Japanese used it on China.

Fortunately, there is a defect in this strategy... That is people can see it clearly and try to repel it.

Therefore, in order to use this strategy in modern day, it must be modified, and lets look at how people play this game in this day and age. It must make sure that the people have the good feeling that seem like they have the choice. Like the illustrations from the video and picture below:-

Choosing between two men, or puppets, with the same secret boss behind is still choosing the secret boss.

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If the Video above does not appear on your browser...

Then, click on this Youtube Link.

Something Not in the Text Book...

http://www.asis.com/users/stag/25Pa.jpg

“You may fool all the people some of the time, you can even

fool some of the people all of the time, but you

cannot fool all of the people all the time.”

- Abraham Lincoln

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