Price Time Volume Investing

I’ve been reading Bill McLaren’s work for a couple years and the thing he stresses the most are the day to day swings of the markets. The idea is that the trend will always have more days and points in the direction of the trend than the counter-trend. I have been posting the SPX swings daily, weekly, and monthly swing charts for premium service subscribers for a while now. I plan to spend more time providing weekly analysis to subscribers on swing charts as they really do tell all that is needed about what current “is” happening in the market.

Key points to note on this chart:

• The move off the March low had thrusts of 2-8 days while the subsequent counter-trend was less in days and magnitude
• Around mid-May there was a 4 day counter-trend which was greater than any other since March
• The counter-trend was followed by 4 days with the trend (up) that did not make a new high
• There was then a sharp 2 day counter-trend
• Next a 2 day trend move made a marginal new high but failed
• The trend changed at that point and two 5 day trend moves down followed
• Counter-trend moves (up) were only 1 and 3 days
• The trend will be up when more days are made up than are down

Post Modified: July 2nd, 2008 at 10:07 am

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