Seeking Alpha

Paul Mosgovoy's  Instablog

Paul Mosgovoy
Send Message
Market updates are no longer posted to this site. All updates and communication are posted on LinkedIn: https://www.linkedin.com/profile/view?id=18898995&trk=nav_responsive_tab_profile Please request a link to be added to my network. Thank you, Paul Mosgovoy
My book:
Market Masters: Livermore, Wyckoff and Loeb
  • What Really Happens......... 0 comments
    Jul 29, 2014 4:32 PM | about stocks: IWM

    Here is a video link that describes in brief, the real forces behind price movement.

    The video is a little raw but that is ok. I tend to be wary of slick presentations. However, the message is clear.

    www.youtube.com/watch?v=0I6lqIBJ2JM

    Just as a clarification, the "technical analysis" referenced is that seen with moving averages, MACD, oscillators and so on. It is not the analysis that is being conducted by analyzing price-bar and volume (which analyzes the forces behind the market).

    Analyzing price-bar and volume on a day-to-day basis (and using multiple time-frames) is similar to the chess game referenced in the video.

    The thought process with chess as well as the markets should be: "If my opponent moves this way (or that), then what is my next (and subsequent) move going to be?".

    Notice that there are no indicators involved with that thought process. There is also no fundamental analysis either.........

    Getting back to the iShares Russell 2000 ETF (NYSEARCA:IWM), we can see that it might be about to get ugly (for the bulls).

    (click to enlarge)IWM 3-Day

    Chart by TeleChart

    If the "pivot point" begins to erode, it may be an excellent indication that the current down-trend has reversed.

    Disclosure: The author is long TZA.

    Additional disclosure: Illustration only. Not investment advice.

    Themes: Small Cap, Russell 2000, TZA Stocks: IWM
Back To Paul Mosgovoy's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.