jgunter's - shorts bbq - thursday, page-131

The big volume on BHP was news related, BHP released a market sensitive announcement at 1.57.

Hence the big increase in volume.

The share price moved up steadily from there until the end of the day. But - it wasn't startling.

I'd say a lot of selling occurred in that up move.

Today's bar was a relatively narrow range bar and a spinning candle. Not a good sign on a high volume day.

Here's one of Wyckoff's Laws:

"The law of effort vs. result states that the change in price [spread] of a trading vehicle is the result of an effort expressed by the level of volume and that harmony between effort and result promotes further price movement while lack of harmony promotes a change in direction."

We have lack of harmony in the BHP action today.

I mentioned in my earlier daily report that Small Ords was suspiciously low compared to the Materials sector ( Small Ords +0.6%, Materials +1.9%). The two are usually well correlated.

So it looks to me like a rush of blood to the head on the part of some in the wake of the BHP announcement - but maybe saner heads sold into the rise.

Let's see what tomorrow brings.

Good luck
Redbacka.

The Small Ords doesn't show the same sort of