merry crashmas, page-57

I have a ref book that I have mentioned before that was recommended to me by Martis...."Technical Analysis of Stock Trends" By Robert Edwards and John Magee. these 2 gentlemen are well credentialed. Magee was the first to approach the stock market from an engineering perspective and was known as the father of technical analysis. Roberts is credited for expanding and clarifying the work of Charles DOW. The book is nigh on 60 years old but has been continually updated to accomodate the changing market. I have the 9th (latest) edition. So why am I telling you this ??

This seems to be some discrepancy on HC as to what constitutes a rising wedge. I am well aware of the internet based information that defines a rising wedge as being at least 3 month and and a max of 6 months in duration. However Edwards and Magee define the pattern as a rising wedge when it exceeds 3 weeks....shorter than this they call it a pennant. They show several examples of rising wedges in their book and they are all shorter than 3 months. they also state that it is very common for bear market rallies to be rising wedges. I have seen few bear market rallies on the long term charts that esceed 3 months.

This bear has been no exception. I identified the pattern post the July 15 low as a rising wedge and I met some resistance on HC because of th whole 3-6 months thing.....yet my 2 month long wedge played out to perfection....So why am I telling you all that ??

Because my friend we have another rising wedge on the DOW...about 5 weeks in duration so far. As the DOW fell in late trading today it hit the bottom of the wedge and bounced.

I am now thinking this little wedge will tie in with Laundries December 29 date. Because of xmas and 2 weekends there are now only a few trading days left till the 29th. I am now supposing that as the DOW hit the bottom of the wedge last night we may see a pathetic little bounce in this upcoming few days and it may be "show time" by the 29th.