nice if ago was $30, page-14

From a VSA perspective

The biggest problem I see for a sustainable bullish run, both for Atlas and the Dow Jones, is the lack of testing.

Whenever abnormally high volume appears, if the Pro's are really bullish, they will test that supply before taking the price higher.

There is very little or no testing on either chart, this tells me they are still churning the market up and down while they accumulate.

If you go back on the Atlas chart to June last year (for instance) when the stock was in a strong uptrend, Every Time abnormally high volume came in (even if it was the Pro's themselves absorbing supply from the left, through a reststance zone), it was tested.

Testing is the sign the Pro's use to measure whether they can move the price up fairly easily and they wont take it up until the testing shows that the supply is gone (either absorbed or withdrawn).

We just havnt seen any (almost) testing, so my feeling is the churn will continue for now.

On the Atlas chart, we have had High Volume for four days in a row, and the two days before that were highish as well, there's no way the Pro's would sustainably take this up without testing all that potential supply,
Sure it might go up for a few bars, then they will either not support the move (No Demand) or sell into it to bring it down.

None of the major Index's here or oversea's are seeing testing either.

My feeling for the Dow tonight is either a narrow spread upbar on either increased volume or lowish volume, closing mid to low on the bar, or a down bar.

I'm only holding around 25% of my origional position and also hold more cash than I have for ages, both personally and in my Super.

I wont be going long on anything until I see the major Index's here and oversea's in an uptrend, with the accociated testing, all boats rise and fall with the tide, so unless the Parent Index is in an uptrend, the individual stocks will find it very difficult (almost impossible) to rise against the Index sustainably.

Cant post a chart right now, had a death in the wifes family today, so I slipped away to post this & check out whats happening.


cheers