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Paul Mosgovoy
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Truth is timeless: “Markets never change” – Jesse Livermore, 1923 The early masters, Livermore, Wyckoff and Loeb isolated themselves from the crowd and crowd thinking. None of them ever graduated high-school and yet they each became legends in the market. Their techniques have been time-tested.... More
  • Small Caps ..........At The Limit 2 comments
    Jul 3, 2014 1:28 PM | about stocks: IWM

    In 1921, Richard D. Wyckoff arrived at the office of Jesse Livermore to disucss business matters.

    During part of that conversation, Livermore revealed some of his trading methods to Wyckoff.

    One of the tenets mentioned in that discussion was how Livermore waited for the exact time to enter a trade. The time when the market was at an extreme and could go either way.

    As we look at the daily chart of the iShares Russell 2000 ETF (NYSEARCA:IWM) below, there is no question that the market is at the limit.

    This is the point where it could go either way. The single most important factor that points to a possible reversal is the market's inability (so far) to hold above the resistance level.

    The longer we hold below resistance at such an extended level, the more the power of the thrust fades away...........

    (click to enlarge)IWM Daily

    Chart by TeleChart

    Disclosure: The author is long TZA.

    Stocks: IWM
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  • zaw77
    , contributor
    Comments (54) | Send Message
     
    Hi Paul, have a nice Long Weekend, looking for your updates next week. Regards, Chris
    3 Jul 2014, 02:38 PM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (119) | Send Message
     
    Author’s reply » You are welcome.

     

    Let's see if TZA moves higher next week and completes a reversal.

     

    Paul
    3 Jul 2014, 04:21 PM Reply Like
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