This is an index of the most widely held equities by institutions. Having built a base at 483 this index moved upwards nicely and absorbed the offerings at the old high of 506.66. It has since broken through after the most minimal retracement. This is highly bullish behavior and tells us in no uncertain terms where the institutions--big money-- stands in this market.
The accumulation on this chart began in July of 2009 arguably and the ease which it has moved up since the spring at 284 in June 2010 supports that case. This also gave back little ground retreating 20 points to 364 after gaining 100.
The Russell advanced to its resistance at 640.92 and has held against it implying that this is absorption and higher prices are coming.
As above but making more progress into overhead supply.
Further supporting the argument for much higher grain prices and equity prices, there is a good chance that we making a spring beneath the 39 line. Any move above 39 would be very bearish bonds especially if there is any serious volume on the decline. Bonds move the opposite of yield and frequently the opposite of stocks. We might be setting up fpr the low in yield for a generation.
I was going to post my Wyckoff position sheet but cannot do so without giving my name. I will summarize it:
#1 upward move of 3-10 points --84 of 106 stocks on the list
#2 upward move of 10+ points --63
#3 downward move of 3-10 points--6
#4 downward move of 10+ points--1
#5 neutral no opinion 50/50-- at least 4 some i did not rate and are not counted
If you could see the charts some themes would come through, such as the strength in iron ore stocks like MSB or CLF or UYM. Or the strength in cloud computing stocks like RAX, RHT, or ARUN among others. Finally natural gas stocks like FSYS or NGLS if they develop upward volume and the corn stocks like ADM or CPO deserve some study. The South American Banks and dollar type stores and credit type companies are also strong.
Needless to say I have positons in some or all of these companies or have them under active observation.
Here is the list of companies I follow. Much of it comes from the IBD 100.
The author is a concerned citizen who spent many years studying the stock market works of Richard Wyckoff. The purpose of this blog is to give a running commentary from a Wyckoff perspective of the greatest financial debacle in our history.
