I remember a little while ago that you mentioned to me that on this journey I might have to 'unlearn a few things' or words to that effect.
I am now beginning to understand what you were alluding to.....
Selecting an appropriate stock with good fundamental prospects, or at least those with a good future news flow....I guess that there is two parts to this perhaps....The company itself as it reaches specific milestones will release market sensitive announcements ie Primary Source. Then there could be what I call as Secondary Sources such as broker reports, newspaper coverage eg The AFR or The Australian. A recent example of this was PTL from memory. Once a certain fund manager released a coverage report to the public, it was like lighting a bonfire when the marketplace re-acted to it.
I think is both market cap, and daily volume traded, that are important…..Appreciate your comments around the importance of liquidity. I sometimes chuckle to myself when I am scrolling through my charts as I often see how the CO has manipulated the amount of liquidity to wrong foot the retailer. In terms of market cap thanx for that clarification.
I am happy to load up on both small and midcaps. It was only recently that I have been putting a toe in the water of larger caps as I see that many have been potentially oversold and if there is more negative news from China/America or the rest of the world, I would possibly turn my attention to these larger caps simply so I am working in those companies with significant liquidity so I can get in and out without too much effort. Personally don’t think the above will happen but I always like to be thinking ahead, so if certain market conditions change, I am ready.
All charts are potential VSA/Wyckoff candidates…..To be frank, the more that I am learning the more it has me thinking about how I can combine the two. I would say that I am slowly getting the picture so to speak, and realistic that there is a bucket load more to come…So that makes it somewhat exciting as I have always been a chartist, and are always looking for ways to get a read on a chart to see what it is potentially indicating.
Re IPL ; I simply noticed that it had popped into my scans and caught my attention due to the significant sell down. My apologies on that one Jako, as I don’t want to meander in a different direction, so will leave it up to you as to what charts we look at. I guess I was just thinking a little ahead of myself on that one.
Re: Your NWZ update
I am comfortable with the chart. Sometimes the soup needs time to heat up before it is ready to be served, and last Fridays action certainly grabbed my attention, when compared to the earlier bars. I was also wondering at the time, what your overall interpretation for the week would be.
In terms of accumulation I remember quite sometime ago in the XSO thread when I first read your feedback about how strength is seen on down bars and weakness on up bars…I recall thinking how can this be, and from that time on, I decided that I needed to begin new learning around this concept. I note that you have tweaked it to; "strength, when it is appears, will initially be seen on a down bar"). Your elaborations of why this is the case however, has helped me considerably. Smart stuff really. I am onboard around your comments about whether the CO will step aside early next week to see if there is any further supply that they can absorb, before the action starts.
From a learning perspective however, and taking into consideration Fridays NWZ bar, if you were looking to take an entry, would you have already pulled the trigger eg on late Friday afternoon, given the volume surge and price reaction??
Cheers
GF
