Wyckoff Power Charting

Bruce Fraser
About the author: , an industry-leading "Wyckoffian", began teaching graduate-level courses at Golden Gate University (GGU) in 1987. Working closely with the late Dr. Henry "Hank" Pruden, Bruce developed curriculum for and taught many courses in GGU's Technical Market Analysis Graduate Certificate Program, including Technical Analysis of Securities, Business Cycle Analysis and the Wyckoff Method. For nearly three decades, he co-taught Wyckoff Method courses with Dr. Pruden, and has also used this approach to the markets as the foundation of his own trading for over 35 years. Learn More

Latest Posts

Wyckoff Power Charting

Gold v. Dollar

by Bruce Fraser

Gold and the Dollar are natural adversaries. They both represent a store of value. When the Dollar is strong, in comparison to other currencies, gold tends to underperform. Recently the Dollar has been a dominant currency, largely as a result of the strong domestic economy and higher interest rates. There has been a subtle change in the price relationship between Gold and the Dollar that could be indicating a shift. What is this shift and does it reflect an important change of trend?                     Read More 

Wyckoff Power Charting

Where There's Smoke...

by Bruce Fraser

In early May (see my 5/2 MarketWatchers LIVE appearance) it seemed that a hint of smoke was noticeable at the tippy top of the market rally. We looked at the attributes of Distribution that were evident in the smaller intraday time frames. During the May 10th Power Charting episode, we revisited this intraday analysis with additional data. Is it possible that a full blown conflagration is emerging from that whiff of smoke seen early in the month? Let’s readjust our view into a larger timeframe and have a look. Click here to review the Power Charting Episode: Wyckoff Intraday Point and Read More 

Wyckoff Power Charting

Boeing is Big

by Bruce Fraser

The Dow Jones Industrial Average ($INDU) is the granddaddy of stock indexes. Charles Dow created the predecessor of this index in 1880s. The publication and distribution of this index was the forerunner of the Wall Street Journal. Eleven important leadership stocks composed this original stock index. The calculation was made by adding together the closing stock prices and dividing the total by 11. This was considered a ‘price weighted index’ as the higher priced stocks had a larger influence on the movement of the index than lower priced stock components. In contrast, more recently Read More 

Wyckoff Power Charting

Campaign Caravan

by Bruce Fraser

For most investors Campaigning stocks is an acquired skill. A stock campaign is typically a multi-year endurance event. In a classic uptrend a stock will have trending periods followed by consolidations (Wyckoffians call them Reaccumulations). These pauses can last months to a year or more in duration. Wyckoff Campaigners resist the urge to sell stock, and take profits during the consolidation phases. Because once a position has been liquidated, it is often extremely difficult to reestablish the trade again after a Reaccumulation resolves into a fresh new uptrend. Especially when a new Read More 

Wyckoff Power Charting

Health Care Crisis

by Bruce Fraser

The Health Care Sector (XLV) took a tumble this past week. In 2018 XLV was among the best leadership sectors of the stock market. Rotation is expected between sectors, industry groups and stocks throughout the business cycle. Were there technical clues that warned of the seemingly sudden weakness in the Health Care Sector?                                               (click on chart for active version) The Buying Climax (BCLX) arrived Read More 

Wyckoff Power Charting

WYNN Win

by Bruce Fraser

Wynn Resorts is a favorite stock to study. WYNN tends to have big cyclical trends which repeat over and over again. These trends are wonderfully persistent in their upward and downward movements. Also prior to a major change of trend, a Cause builds for either Accumulation or Distribution. And these Causes can then be evaluated with horizontal Point and Figure (PnF) count objectives. Read More 

Wyckoff Power Charting

Yields Flatten

by Bruce Fraser

The Yield Curve recently flipped negative (10 year compared to 3 month treasury yields). A negative Yield Curve is typically a ‘Tight Money’ indication which often leads to economic recession and weaker stock prices. The December 10, 2018 Wyckoff Power Charting blog was devoted to this subject. The conclusion was the flattening yield curve would likely not be a threat to the economy or stocks because US Treasury interest rates were falling not rising. By the end of the month stocks launched into a major rally. Take some time now to read this earlier yield curve blog (click here) Read More 

Wyckoff Power Charting

Trucks. Trains. Airplanes.

by Bruce Fraser

The Dow Jones Transportation Average, since its creation, has been considered a sensitive leading indicator of business conditions. The legendary ‘Dow Theory’ was created as a trend confirmation indicator of the Industrial Average to the Transportation Average. When they are both in-gear, upward or downward, the major trend is confirmed. To read more about the Dow Theory click here and here.  Since the ‘gross domestic product’ of the nation largely moves to market on the companies in the Transportation sector, let’s study this most important index. The future Read More 

Wyckoff Power Charting

Residential Constructive

by Bruce Fraser

In August of 2018 we studied the Residential Construction industry group (click here to view). This group was very weak throughout 2018. After a sharp January decline a long period of Redistribution set in. Rising interest rates during the year became a headwind for the group. In September, the redistribution concluded and a persistent downtrend followed. The bond market has had a major rally since October. Has this rally (falling interest rates) improved conditions for the home building industry?                 Read More 

Wyckoff Power Charting

S&P 500 Trending

by Bruce Fraser

The Wyckoff Method constructs trendlines somewhat differently than other popular technical methods. Mr. Wyckoff’s trendline method is obscure and not in wide usage. The main benefit of this construction technique is to support effective trading setups as the trend is unfolding. Trends (all timeframes) tend to set the rate of their upward or downward stride very early. The essential value in identifying the new trend quickly is in how it supports more and better trading junctures as it grows and matures. Here we will review the recent activity in the S&P 500 while studying the procedure Read More 

Wyckoff Power Charting

Material Development

by Bruce Fraser

The U.S. Mining Index is composed of industries that manufacture a broad spectrum of materials used in manufacturing and infrastructure projects. Typically, the Mining Index comes into a performance leadership position as the economy heats up. Therefore, in the middle to late stage of a business cycle expansion this group and the stocks within should be leading the way upward. In the current episode of Power Charting (StockCharts TV) Martin Pring leads a wonderful discussion on how to use the Pring KST to identify where sectors and asset classes are with respect to the business cycle. We Read More 

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