Testing The Test, Complete?
Before we get to the chart, let’s start with this from ZeroHedge:
US Pending Home Sales Collapse To Record Lows In September, link here.
Next, we’ll paraphrase a comment.
Note: If you want to see the direct quote, it’s the first one in the article:
‘The reason real estate is not selling is because of doubt. Doubt about the economy, war, the country and whether ‘normal’ will ever come back‘.
Well, we have news, ‘normal’ is not coming back.
We’re in a new paradigm.
With that, let’s remind ourselves on ‘why’ ABNB launched higher this past August 7th, link here.
The link is of interest, as it tells us the ‘official’ narrative.
Now, looking at what price action is actually doing.
Airbnb ABNB, Daily Close
The last update on ABNB, was here, where it said, price action is likely in an upside test.
At this point, we may have the beginnings of a reversal (not advice, not a recommendation).
Stay Tuned
Charts by StockCharts, TC2000
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The Danger Point®, trade mark: No. 6,505,279
Wow,
This is completely opposite of the mainstream constantly talking about earnings and such.
Also, that Wyckoff guy is brutal. Says things like ‘get your head out your arse’, pardon the French.
In the book, change things like ‘crowd at the brokers’ to ‘social media’ and it’s all the same.
I’m drinking from a fire hose here.
Bard Sense.
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Thank you for the input.
From what I recall, I don’t remember Wyckoff using any profanity or ‘colorful language’. 🙂
With that said, in Studies and his Autobiography, he does present a particular disdain (and is blunt about it) for the lazy and the average.
His example of the ‘public’ mentality as he calls it, not buying UP (Union Pacific) at 164 1/8, instead of ‘his’ (the public’s) price of 164, thus missing out on the bull run in the stock, as an example of the mindset.
He says (effectively) ‘If you don’t want to pay the extra eighth, buy your own seat on the exchange’.
As far as earnings or valuations go, that nugget is in his Autobiography, the chapter titled ‘1902 Going After The Public’. He states, ‘prices have an energy of their own, having nothing to do with valuations’.
There we have it: 116 years ago, we get the truth that ‘earnings do not move prices’.
Doing a search on my former mentor, David Weis, came up with this link: David Weis Video
I watched this not long after it came out (13-years ago) and was thoroughly disappointed with the comments section (which might be why it’s now turned off).
Anyone reading this post needs to decide for themselves if Weis knows how to read the market.
Thank you again,
Regards,
Paul
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