Richard D Wyckoff

From DY – “Hey Floyd! Nice Alert...Got in May655P @$15.50 and sold @$17.70. Everything looked really good to hold position open to tomorrow but I decided not to be greedy! Thanks again”

The Dow projections are key. Yesterday we advised that the highest top would be 13,110, with a top at 13,050 likely. At intraday highs the market hit a theoretical Dow top of 12,982.

Although upside remains likely around the upcoming FEDS announcement next week there is a good chance that upside is already being priced into the market.

No real news that is triggering upside is that good. We see this as a good, but perhaps short bull run. Early afternoon we issued an alert for the May655P, and were able to buy at 15.60 and less in less than 15 minutes. This is a first position buy to a contrary hedge currently ITM that we'll hold prior to the FOMC announcement, and look for several types of profits. It was fun to watch, as the position hit sellable highs of 18.40 within an hour:)

Calls may still have upside, and we'll begin a buy on an OTM May call soon, noting yet again we believe this is an overall very high risk trading market.

I was trained by a Father that was trained by Richard D. Wyckoff, the famed 1920's Wall Street trader. Dad taught me much of "the composite man," and within all my studies, and proudly cynical views of how the market is typically studied, so much reverts to Wyckoff. Investors Business Daily (IBD) and William O'Neils great book How to Make Money in Stocks is all based on Wyckoff.

Further, take the time again to study a bit of Floyd's use of Fibonnaci retracements. Some traders in our Advanced Mentoring service are working with us now on using Fibonnaci extension levels. We use 138%,150%, 161.8%, and 200% as extensions in comparison with the classic Fib retracements.