Hanging On
After the ‘Reversal Ready’ update, link here, Cadence never looked back.
Now, we’re at the edge of a wedge boundary with earnings coming up soon, link here.
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The Danger Point®, trade mark: No. 6,505,279
Earnings, late February, early March
Earning release for CVNA, CRWD, and CDNS, are scheduled here, here and here.
All three charts are in the same, or similar position.
Q: Anyone know?
A: Recently penetrated support or are testing that penetration.
Technically speaking, they’re all in Wyckoff ‘spring’ position (not advice, not a recommendation).
Chart analysis to follow.
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The Danger Point®, trade mark: No. 6,505,279
‘Ending Moves’
Back in the day, Jesse Livermore nearly went bust attempting to short the downside of what became, The Panic of 1907.
Stopped out time and again, he finally (according to Wyckoff) hawked his car to rase capital.
Form nearly broke, to closing out short trades on October 24th 1907, net profit over $1-milllion.
With that, we have a strategic picture, in focus.
During a recent interview, Ed Dowd discussed the +35.95% gap (and close) on Oracle, as a result of ‘projections‘.
The take-away (from him) was these types of moves are ‘ending moves’, not the beginning of a new bull run.
Since then, price action has fully retraced.
ORCL, is currently down a whopping -41.6%, from its all-time highs. Hardly a bull market.
We’ve presented eBay in a similar position.
Carvana, launched itself above resistance at Friday’s close. In so doing, got itself into another wedge.
Now we have Expedia, looking eerily similar (not advice, not a recommendation).
Like eBay, we’ll start with the long term, quarterly chart.
Expedia EXPE, Quarterly
The latest earnings release pushed EXPE up, contacting the upper trendline.
A gap higher and close of +17.55%, in one day.
EXPE has since backed off the all-time high; currently down about -8.5%.
Edge of The Wedge
The following is a partial list of tickers either forming a (monthly) terminating wedge, or have broken out to the downside (not advice, not a recommendation)
APP, CARR, CDNS, CVNA, EBAY, EXPE, NFLX, NVDA, SPOT, TEL, UBER
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The Danger Point®, trade mark: No. 6,505,279
In The Aggregate
Whether or not we’re at the ‘anxiety’ point shown on the chart, is yet to be seen.
Markets are open this coming Monday, except for bonds, adding to the weekend angst.
Reviewing The (past) Week
Posts over last week, even the weeks before, showed from a Wyckoff perspective, something was about to happen.
Cadence Design … Reversal Ready, link here.
When The Bonds Spike, link here.
Wells Fargo Top … 86.66, link here.
Biotech (short) Set-Up, link here.
Top of The Dow, link here.
In retrospect and in aggregate, it’s now obvious something was amiss.
The ‘Art’ of Wyckoff
Wyckoff technique is more art than science, more intuitive than calculated, more ephemeral than certain.
We’ll get into what happens when logic overrides that art, in the next update; Nat-Gas UNG.
Stay Tuned
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The Danger Point®, trade mark: No. 6,505,279
The Danger Point® 