Ian Woodward's Investing Blog

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.

This entry was posted on Sunday, May 3rd, 2015 at 1:25 pm and is filed under HGS Principles, Market Analysis. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.