Ian Woodward's Investing Blog

My good friend Bob Meagher helped me put this Blog Note together with wishes to you all for a Happy Memorial Day!

The Major Market Indexes which are long in the tooth hit new highs this week  and are now pausing to refresh:

The Canaries have found support and are pausing to refresh:

The S&P 1500 is pausing to refresh after jumping up into New High Territory this past week:

The Twelve Drummers need to breakout this week or we pullback before hopefully going up again:

With luck, a fresh rally is on the way and we should expect the Accumulation vs. Distribution Ratio to drive the NASDAQ higher:

%B x BW is still out of sync with %B, but with one more powerful move to the upside we should see things improving:

Although I am sure I am “Carrying Coals to Newcastle” as my English friends would say, I have to remind us that this Rally is very long in the tooth and a correction is overdue.

We have had a 44 Month run with a 90% gain so no wonder we are all biting our fingernails and wondering when the big dipper is coming:

…And finally, here are the Near Term High and Low Targets…let’s keep our fingers crossed that we hit 5200!

With best regards,

Ian.

My good friend Paul Reiche made an astute observation when comparing %B versus %B x BW and wondered why the colors are not in “Sync” as shown in chart 7 below.  The value of the Woody Indicator (%B x BW) is to give a faster look at the market movement as he rightly says and at such times it pays to turn your attention to what the Bandwidth is doing!  I will cover this scenario in charts 7 to 10 below.

Let’s first look at the Market Indexes to show the lay of the land and as you would expect it has been a choppy market to say the least for the past month:

The Canaries haven’t faired much better though NFLX and PCLN have been the stars with LNKD just taking a wallop:

Note that the Internals of the Market as viewed by the Accum. vs. Dist. Ratio also show that we are at Stalemate:

The choppiness we have had to put up with is quickly evident in this next favorite chart of ours:

…And here is the Drummers Chart which also shows the signs of a Choppy Market:

Now for Paul Reiche’s astute observation below:

So let’s go back in time and then bring us forward to date to see what happened in a similar situation:

…And here is the follow on chart which shows how everything got back in sync!

Lastly, we are back up to date and so we keep a beady eye on the behavior of the Bandwidth to ultimately bring us back into sync:

Let’s see what transpires over the next week or so.  Hopefully things will right themselves in the fullness of time!

Best Regards,

Ian.