Thankyou so much for your reply.
Boolean algebra inside.
- Thread starter Kurgan
- Start date
Reading IBD is really fun.
It is inevitable that the top of the pile gets replaced as events pass.
as you watch, you see something like a coral reef on end. the fish go up and down and one side of the reef has an air side you stand in on a ladder.
There are fish in schools and they all have three and four letter nametags. Different schools are the best schools at different times. School leaders are at the front of every school; they know where the school is to go. So in the best schools you trade the fish who are following the school leader upward.
This happens at Harvard and Wharton reefs. Study groups are like schools of fish and they each have "natural" leaders. If you are in a study group, you follow the leader for sure.
For us we do follow the volume as if they are fast bubbles that precede a sector of stocks (school of like fish). Look for bubbles preceding schools. Thats why I put the reef on end.
Telltales are so cool because they are simple to lock into the mind. If a sector is going to rise to push out another sector, it has volume in its leaders bubbling ahead of the beginning of the rise.
Data in the finacial industry is always laggeing as a consequence of reporting requirements. reports are analyzed after the events took place. 197 schools are being statisticulated. the last fish is processed into the preliminary data (hopefully they re running partials of each school all the time).
The financial industry doesn't do sector stuff as if calculus were possible (it isn't). It is all quant restricted thinking.
In the lae 50's, I had to pick sectors that fed other sectors to get things to have high beta (not invented at that time, however) stocks. Machine tools, for example, fed all kinds of manufacturing that used materials. Paper fed the documented world. Pharma fed the sickness industries. Etc...
This was a sector leader/lagger thing in the absence of WJO'N and IBD information providing efforts.
Schools swim along in the sea. Some go higher and higher and push the others out of the way (make them go back down along the reef). We watch the leadrs and trade the followers of he leaders.
For me, I always sit in the back of the plane. It is important that those in the front get there first when the trip is having difficulties. Fish are the same. First class always go where the pilots die.
A high beta follower is where its at. Look for the rank final column data on the sorted (filtered) lists when the same buy date occurs in sector sort.
On TN platinum thre is a strategy gizmo. Among the strategies are sector sorting things to click. then you dump into a quote board to see the columns for differentiating events and prowess of preformance. There the whole IAS stuff is handled as a rank final y using some Welles Wilder sub formulae.
Would it be possible to go over your drills/routine that you used using IBD to separate the wheat from the chaff for IT trading the leaders and laggers in the rising sectors?
IBD publishes the 197 sectors and their relative rank weekly.
I kept notes on the part of the sectors that were near and at the top. I did the PVT on weekends.
Today, the RDBMS consepts do explain how to do the comparison.
I watched the change in rank of the list. And I drew a line at the place where, above the line, the sectors were "significant" in performance.
For me this was a switch from using the "primaries"* all the time. In other words, information was now being published. This meant I had facts to do analysis.
Ranks were like lifeboats floating on things like swells and waves(bull/bear and IT).
fighting for the top meant the "context" was super to begin with. I was doing eeking s well, though.
Below the line I did glances. The data automatically listed the RDBMS aspects with three numbers: old, new and difference. I glanced for positive differences week to week.
Above the line I surmised the rotation. Then at leisure I could blast though a sector of interest and line up all the ducks using PVT analysis (IAS's) Here, I got leaders and laggers from the chart's cycling offsets.
the explicit advantage of the PVT rank is that you know the money velocity and for high ranks the non dominant move is often just a slower rate of profit collecting.
Leaders are stocks that are more agile because of their "size" and "ownership". Laggers are more "quality" oriented by EPS and RS.
historically, I lucked out beyond imagination. I was a writer/engineer in systems testing. Problem solving on a manufactured large sizedcomplex unit basis. A lot of implicit indicators would be what helped to find the explicit problem.
It could be a manufacturing error or a lesser detectable function error. for realys, they were called bugs because of residential moths (wings specifically). The flutter factor. In vacuum tubes, they all do not look alike and we were becoming oriented to the speed of cycling.
What I got was a five year mental drill work out in logic operating analysis. If it didn't do what it was supposed to there had to be a way to find out.
Making a data system mainframe and attachments play jingle bells was not difficult.
I always gave my great uncle a print out of santa and his reindeer to unfold across the living and sitting room floors at Glensfoot Farm in cherry Valley.
My mental drills got my mind to be able to "work the turf" of the market. I tried using 024 and 026 key punches to load mainframes with data to do market stuff. So I climbed on a drafting board and made a shortcut that worked really well in '57.
14 to 16 days (2 PVT cycles) was a year in Conner's present trading time and yield of his three variable (see colors on home page) pizza choice method.
Later when IBD was invented, I was asked to be a beta tester for their Instututional data service system. I didn't BUT I did frame feature type operating assets for it.
SST, the IT version of position trading PVT, has always been a 4 1/2 week nominal cycle. It is on a slower Fractal built from the interlocking PVT fractal levels.
The coincidence of FTT's on both fractals is a cool feature.
It trading is a place where money is dumped that is swept weekly) out of capacity trading PVT and SCT.
So the drill is to watch the "differences" above the line where the opportunities are "certain" to begin with. There in those sctors you do leaders (agility testing), so you can expect laggers (quality ranked as in PVT for high beta money making) to perform with your capital. You also glance at high differences below the line to see newcomers.
while in the Phoenix years, I spent breakfasts a couple times a week inventing the stocks that fit into 7 slots that later became known as silicon valley. These were agile corps that were summing to the line and crossing it.
The older corps were no longer agile and they didn't hack it in performance although they had the opportunity. for example, IBM never filed to sell its inovation (IBM sold its transistor manufacturing cpability to TI; I used to talk to IDA on the phone...lol)** and keep its golden oldies that salesman could do repeat orders on. Bad dog. Bad dog.
Mind building for trading is the most important thing. Purposeful Drills are what builds minds. Any drill that simultates RDBMS is a drill to create to do.
* machine tools, pharma, paper, etc...
** today at Tech the women's dorm is the Ida Greene dorm.
Once again, thanks for the reply.
I am currently focusing on the IT due to time constraints. If one wanted to maybe buckle down and move up to PVT, what specific trades are you focusing on? Typically, the only 2 trades that i see as being really good high velocity trades are breakouts out of handles and stocks breaking out of lateral down ITs.
Stocks that are near the bottom of C and Hs typically take a while to actually break out of the Cup. If their is enough room from the bottom of the cup to the top of the cup, that trade can also be taken. Typically though, There is not that much room from the bottom of the cup to the top along with it being a little slower in terms of money velocity compared to the BO of the handle. Are there any other trades that I may be missing? Also, can you maybe go over how Even harmonics transitions to odd harmonics throughout the life of a stock? Is the C and H considered odd harmonics? looking forward to the reply.
I am currently focusing on the IT due to time constraints. If one wanted to maybe buckle down and move up to PVT, what specific trades are you focusing on? Typically, the only 2 trades that i see as being really good high velocity trades are breakouts out of handles and stocks breaking out of lateral down ITs.
Stocks that are near the bottom of C and Hs typically take a while to actually break out of the Cup. If their is enough room from the bottom of the cup to the top of the cup, that trade can also be taken. Typically though, There is not that much room from the bottom of the cup to the top along with it being a little slower in terms of money velocity compared to the BO of the handle. Are there any other trades that I may be missing? Also, can you maybe go over how Even harmonics transitions to odd harmonics throughout the life of a stock? Is the C and H considered odd harmonics? looking forward to the reply.
Long ago, say in the dark ages, WJO'N's protogeges were out in the boonies (scottsdale for example).
I sat through the presentation and I had brought my records.
The PVT picks off C and H's when the bottom of the cup first appears.
C and H's do not appear often. Bottoms of cups do appear and price just skips the going from the bottom of the cup to the end of a handle. This happens all the time.
In the presentation, 7 C and H's were profferred as potential buys (sort of IT oriented). It was known also that I was trading some of these at the brokerage of the presenter (I was in at the cup bottom).
Crudely speaking you can use the one pager and do the IAS now, automatically. I merged them electronically as a filter and an analysis ranking tool.
To go from ST to IT, just change the display orientation (for monitoring after hours) from daily or 30 min to weekly.
Lateral down IT's look like CCC's that are in a shadow and biased down or are just not "cuppy".
All BO's you will ever trade well and successfully have to have volume increasing to not have an FBO. FBO's are sort of insipid because of ill health in volume.
Most of the financial industry is in the form of IT salesmanship to make enough fees and commisions. What you do is add trading profits by exploiting how the market works.
WJO'N changed the industry by providing a high class institutional investing platform with all the bells and whistles for about 44k a year. (long go) He introduced factual information to the industry.
You are filtering for QUALITY. After that, take the IT ride.
By entering a little late, you shorten the profit segment AND you have a higher money velocity of growth simply because you do not have any FBO's to handle. You simply do not have any losing trades.
The trip along the first leg is P1 to T1 to P2. P1 is near or at P3 of the prior short. You see this and you stay relaxed.
Slip in a little later in the first move. Usually I am picking off the bar volatility in the beginning of the move. It is not that important. relax and assure certainty around the post T1 event moment.
No one HAS to double their capital seven times a year. It scares brokers and the SEC.
Dodd and Granville were contempraries of Dow. The industry went through the Dow door and settled in for making money just from the growth of the industry (with integrity derived from not cheating in golf.) When I moved to Greenwich a golf ball cost 10 dollars; nine tax dollars and one dollar for the ball. I even ski'ed in nickers (Austrian climbing stuff).
IT trading stocks is using quality and knowing trend's three legs. Enter later in the first leg and just take all the trend's profits by knowing the end of the trend s a coincidence of three FTT's in three interlocking fractals.
bingo. There is no upper limit on the capital you apply.
I have noticed this happens often as you say. I just use the first ST non dom traverse of the new IT long trend(usually within the cup) that has just gotten underway to get ready for the BO.
Thanks for the reply.