Beware the False Breakout

At Wolf on Wall Street our plans are coming together perfectly. What 3C has showed us in the market made today the exact thing we were looking for. I would be very cautious with this move up today, it is actually part of our scenario that has worked out almost perfectly as envisioned a week ago.
I'll be posting more soon, but I want you to really look at this market carefully and understand that they use Technical Analysis against you. A breakout from 3 bear flags in the major averages.... DO YOU TRUST IT?
Brandt Uses Worden's TeleChart and StockFinder 5 Exclusively

Be Read. Monday

Uncle Ben has run out of recipes for the economy, he was some stuff in cans laying around, but nothing like the 5 course meals he use to whip-up. The Cupboard is simply empty save for a few left behind items of little use.
Congress may have finally figured out that they can't spend their way out of this one and the more they dig, the deeper the hole seems to be. So why not save that money that they never possessed and spend it on other vote buying measures?
The President did inherit a mess, I suppose history will judge what his part in it was, he doesn't seem to want to take much responsibility for it, not like in the early days when he was running for President, he was full of fire regarding the economy. I think another President may have learned that even the most powerful man in the world can't hold back the damn when the walls start to crumble.
The world economy? They aren't leading in anything, their lagging, what their going through now is kind of akin to our 2007-2008, their going to see much worse times ahead as we do.
Friday's rally, is being called "investors applauding Bernanke's speech and plans".  Monday's sell-off was called "Investors thinking about it twice."
Behind the scenes there are bigger issues in motion and these daily uttering from the media as to why Wall Street did what it did are really pathetic, their not even well thought out and usually no where near the real reasons which are usually exposed days and weeks later. It's a simpleton's answer to a complex question.
However, whatever you see in the market good or bad, prepare yourselves. The economic situation itself should make that clear without even looking at a chart. 5% GDP to 3.7% to 1.6% in 3 quarters after a huge round of congressional spending, Fed Q.E. and every other trick either could pull out of the hat, and we get 1 qtr at 5%. We need 4 consecutive qtrs at 5% to pull down unemployment by 1% point, right now we are not even keeping up with population growth. IS the picture emerging?
My site didn't have a lot of traffic when I was telling people this in October, they watched the market rally and surely that meant something, well it might have had smart money not been selling into the rally the entire time. Now people are interested and a good thing because it's not too late, but action needs to taken quickly, risk management needs to be put into place and more then anything, you must uncover how the market really works. For those who pull the strings, they make money either way, it doesn't matter to them. In fact they make it faster when the market falls. What took 4.5 years to build up, was torn down and then some in 1.5 years.
And the media will have an answer that is somewhat comforting, "X" trillion dollars was lost in the market. So know you don't feel so bad, you were just a passenger in the tornado that ripped down the bull market. However, was the money lost? Burned? No! It went from the hands of the many to the hands of the few-the few pulling the strings. Some people call it the market or business cycle, to me it's no different then growing the sheep's coat and then shearing it off and doing all over again. So prepare for your haircut, or prepare to make some serious money, how you decide to handle this coming storm will determine your fortunes, but just don't sit back and think that it's going to miss us, it won't.
Brandt Uses Worden's TeleChart and StockFinder 5 Exclusively

DOW 10K It's All In Your Mind and Out of Your Account

This week at Wolf on Wall Street, it has been a bunch of tough to swallow signals. I learned over time to trust my charts and not to argue with them, even in the face of what seem impossible chances. For instance, at WOWS I'd been telling readers to get prepared for a bounce in oil. 3C shows me accumulation, but it doesn't tell me why. I guess one might see accumulation and think, "Well maybe the Oil Inventory report on Wednesday will be bullish for oil and that has leaked into the market". Well it wasn't a good report, it didn't miss consensus by a little, it missed by a huge amount-no reason whatsoever for oil to move up. Second hard call, into the lows, we saw ACCUMULATION! So after a disastrous report like that, bad economic news otherwise swirling all around, I had to hold back the butterflies and do what every cell in my body didn't agree with-I had to say, 3C is showing accumulation into the sell-off. Guess what, members trusted 3C and they bought it! And from there, oil did the unthinkable, it rallied! UCO, one of our trading vehicles for oil is up 14% off those lows since Wednesday-3 days. Some members used options and really cashed in.
Difficult call 2- Accumulation in the broader market...
Here's what it looked like

The first two white boxes show intense accumulation below Dow $10k, the third one is a leading divergence.

Another version of 3C showed they never stopped buying (institutional money). It's pretty plain to see when the market is trending down and 3C is moving straight up.
However we all know that Dow $10k is embedded in our collective conscience as a hallmark, a benchmark and the shorts came rushing in, any longs betting on catching the falling knife were likely stopped out and I had to suck it up and do my job, tell readers what the chart said, not my opinion or doubts, but what the chart said. So we prepared for a bounce and our long trades triggered and many members went long the market, even as a majority of blogs and even Cramer himself turned bearish, we went with the chart.
You have to understand something about the market, there are no accidents. If you read last night's analysis of what would happen today with the Fed, I think you might be inclined to think I myself had inside information. There's no doubt the institutional players knew what would happen in advance, they prepped the battle field and we could see it as it happened. 
And what about $10,000? I can't think of any reason why $10,000 is more important then say $10,007.17. There's only one reason and that is the human mind's affinity with whole numbers that society and Wall Street have clearly helped cement $10k into our thought pattern which is convenient as we are attachted to whole numbers to start with. 
And at $10,000, the trap lay waiting. I'm not sure that today produced a huge short squeeze, but we have a working hypothesis we are following as to what Wall Street is really up to and I will tell you, it's not going to be good for the average investor/trader.
Many things became apparent today. Members who read my analysis last night of the Jackson Hole Bernanke speech would probably agree that I could have written it. It was exactly what we were looking for, as was the revision today. 
I have preached for quite a while now that Wall Street is manipulated. This week has solidified my hypothesis, there are very few spontaneous occurrences on Wall Street. As you can see with today's bounce. Sure CNBC and all the talking heads will talk about the revision not being as bad as expected and traders pushed the market up because of this and that and it all doesn't mean a thing. The fact is, Wall Street commissioned this bounce, they put it together. They set up the shorts, they did everything according to an exacting plan for a particular reason. We believe we know what that reason is and the great thing is we don't have to sit by and wait for XY and Z to occur. You see, we work in front of the market as well. Wolf on Wall Street is not reactive to the unfolding of market events, but reactive to Smart money actions. That gives us a head start, a leg up or... an EDGE. 
Yes, I would love for you to join us at Wolf on Wall Street and while it may seem that I'm patting myself on the back, it really has little to do with me other then I'm the one who puts the pieces together from objective data. I'm not a market guru who can tell you what the market will do, I'm an analyst of objective data. Again though, my point is simply this:
We all have been brainwashed by Wall Street, the major media outlets, well meaning authors of technical analysis books, and just about every other source of market information. I studied Technical Analysis for many years, I have a library of probably over 100 books. It wasn't until I stepped outside of the mainstream and thought, "I can do this, I can think for myself" and developed my own indicators, did I get a peak of what Wall Street is really like. Every day, every situation, objective analysis using tools that only I use, show me things that the crowd can not see. If you are a believer in free markets and that a good technician can consistently and intentionally make money, you will be very disappointed by what we have learned and continue to learn. They say the market discounts all known information-I say that's not even close to the start of reality. The market knows about information well before it's ever announced, before it's even suspected and they set the board, they run the game, they use the little guys as their pawns and just when you think you are doing well, they pull the rug from under you with something like the most improbable rally in oil I've ever seen.
The reality of the market can't be found in book. If you read enough about Technical Analysis and practice it diligently, you will be the black belt in Karate that knows just about enough to get himself killed in a street fight. Do you honestly think that Wall Street doesn't understand Technical Analysis? Of course they do and when everyone is looking at the same technical setup that hundreds of books have told you to buy, they use it against you. They hold the aces, they know your hand.
The reality of the market can't be found on CNBC. I found it interesting that Cramer on his "Stop Trading" segment was talking about how bad the market looked this week and at the same time, institutional money was accumulating for a bounce. Or when 3C called the end of the 5+ year rally in oil and Cramer told his audience members to be "Contrarians" and buy the next bad US Oil Inventory report. Oil broke down and never recovered and who was left holding the bag? And exactly how is it that millions of viewers all doing the same thing can possibly be called "Contrarians?
What about the reports from the government? What about the reports from the Fed? We've seen evidence of all of them leaked.
When 3C called 19 of 21 earnings reports we analyzed, were we just lucky? No, I don't think so, I think what we saw were leaked reports.
So how do you win? I can make a pitch for Wolf on Wall Street, I often do. I also taught Technical Analysis classes for 3 years and considering the time I put into each one, I made about $1 an hour. I've had Trade Guild for 4 1/2 years and published 1585 free posts. On YouTube I have published 233 videos and even more when you count other sites, all for free (it takes me about 2 hours to do the research, record, edit, and post each video).  So yes, I charge for Wolf on Wall Street because it's what I do from 8 a.m. until 10 p.m.-I've even posted at 4 a.m. so without charging something I couldn't do that. But read what my subscribers say.   
I have a conscience. I've heard stories, first hand of a Grandmother who considered taking her own life because she lost so much money in the market that she feared she'd have nothing left for her children. Can you imagine listening to that, seeing the tears and the hopelessness? All because she couldn't afford to live off social security and put her retirement money in the market. And then knowing what I know about the truth of the market. How can I stay silent? How can I not help anyone who reaches out to me? 
Whether you are a Wolf member or not, I'll always do my best to answer your questions. It comes down to two truths. I know the game is rigged in such a way, that if you are on the outside, eventually the house will win given enough time. And two, because I understand the game, we know how to play it. The Big man upstairs blessed me with an indicator I developed and as long as I can do this, I will always do my best to level the playing field for my readers and members.
My advice to you, is put away everything you know about the market, think outside of the box and start looking for the truth; it can be found and it can be used.
That's my say for tonight. I'm a little excited because we had two seemingly impossible signals that were 100% on target, it was an emotional roller coaster. And the more I learn about the game, the more disgusted I am, but also the more successful I am. I wish you all prosperity and a fantastic weekend.
Brandt Uses Worden's TeleChart and StockFinder 5 Exclusively

GOK-One Day Wolf Gain

GOK was listed one the Wolf on Wall Street Trade Sheet the night of Tuesday, August 24th. The Trade Trigged at $4.02 Wednesday August 25th-along with many of our other oil longs-see the article below about the improbable gains in oil we are making (until we see the negative divergence in 3C). 

On a closing basis we made nearly 19% in one day. On an intraday basis, it could have been as high as 39% in a day!
While there are many technical signs of a decent trade, many of them fail now because Wall Street knows what Technicians are looking at and they use it against you, but we found a loop hole that shows us what Smart Money is doing, and guess what? They can't do a thing about it!
Here's a few examples of what 3C showed us, it's all accumulation by smart money.

Here we see weeks of positive accumulation, but how do we know when the trade will break out?

We wait for the market maker to load up their supply and that's exactly what happened on the 24th and 25th as you can see prices on a small decline, but 3C is rising-accumulation by the market maker and time for the trade.
If you want access to this kind of insight, if you want to understand how the market really works as we see it day by day and not in some book, then consider becoming part of the pack at  
Wolf on Wall Street.
Nothing happens by accident on Wall Street.
Brandt Uses Worden's TeleChart and StockFinder 5 Exclusively

As Promised

Last night's post I put up a chart with 3C and a VWAP, I said to study it and you'd learn something about how the market works. The chart showed what appeared to be the work of a specialist (market maker) accumulating shares of a triple leveraged long of the S&P-500. If you looked carefully you'd see that accumulation (vi 3C positive divergences) occurred under the VWAP, when prices got "pricey" there would be a negative divergence to bring the market back down below the VWAP and accumulation would start all over again. 
I also said that the chart could tell you something else, but I'd wait until tonight to disclose that to you. Well it's tonight and what I took away from that chart was professionals accumulating a leveraged long which in and of itself is a piece of the puzzle, but one that suggests we'd see a bounce and that we did today.
Look at the market news the last two days, other then gaps down, which 3C shows were accumulated, the market's didn't see further downside pressure. As a matter of fact, they were pretty plain. When sentiment is that negative and the market refuses to continue to sell-off throughout the day, something is going on and that something has been accumulation we have been tracking at Wolf on Wall Street. Yes, we've been expecting this bounce, we even were expecting the move up in oil.
Speaking of oil, inventories came in way higher then what the consensus was, the dollar did not lose much ground today, in fact it closed up, yet oil put in a monster rally right off the lows. Why would that be? Bearish news, no movement in the dollar to cause a rally, yet we got  sharp rally? 

So what drove this rally? Institutional money. Look at the accumulation at the lows of the day in USO right after the report came out and it sold off hard-they were buying.

At Wolf on Wall Street we've been watching this build for awhile, including the market bounce. This rally in oil though defies almost all logic, only by using 3C could we pick up on the moves of smart money and put together the pieces of the puzzle.
Here's a little from the intraday updates of which there were 15 during market hours and two after market-17 real time updates yesterday with 21 intraday charts.One update showed every positive divergence in the major indices with (11) 3C charts all pointing to a bounce today, that was just the market. There were others pointing to a bounce in oil, despite the bad news and despite the fact the dollar actually gained!
Here's some quotes from the intraday updates yesterday:
"This is the first real positive divergence in the SPY. It's a little strange with the poor existing home sales report...." 10:17 a.m. Wolf on Wall Street
I learned a long time ago never to argue with a solid signal, despite what's going on in the market, in time it will be revealed.
"The more important 5 min. charts are showing positive placement, they appear to be using these lows to accumulate. One thing is for sure, there's not aggressive selling which means this is likely (as to what I see as of now) to put in a doji, star or hammer reversal day as I mentioned earlier this morning." 12:33 p.m. Wolf on Wall Street
Most of the averages did put in that star I was talking about as being a likely close for Tuesday
"Oil you can see saw accumulation right off the open, when prices got a little high around 11:45, they sold some, most likely to bring their target zone in line with the VWAP." 1:06 p.m. Wolf on Wall Street
Again, more signs of accumulation in USO
"it appears that there has been fairly robust accumulation today and the confirmation between the different indicators and ETFs is what I look for. I'd say this is the strongest signal I've seen yet since the idea of a bounce came about" 3:16 p.m. Wolf on Wall Street
Who in their right mind would have gone out yesterday and called out accumulation in the market and a strong signal for a bounce? Not me, I was just following 3C.
"Don't forget, if you play this potential and in my opinion, likely bounce, chances are probably 50/50-depending on how strong the close is, that they may gap it down in the a.m. If the market closes strong, those chances diminish." 3:35 p.m. Wolf on Wall Street

Obviously the weak close told members that the chances were higher that the market would gap down this morning as it did.
So with all the updates yesterday, a few things were clear, we were expecting a bounce based on the 3C accumulation, in both the market and oil. We got horrible news today, who would ever have thought the market would put in such an astounding recovery? Wolf on Wall Street members! We saw a rally of nearly 2.3% from the lows to the highs in the Q's today!
Bounces are funny things, they can be relief bounces that are interrupted but gain ground or they can be scare bounces that show extreme momentum, either a little at a time for several days to a week or so, or with huge momentum in several consecutive days. Understanding how the bounce will unfold, when it will end and what type of bounce it is, what institutional money's purpose was in creating it, is extremely important-especially as you move forward.
3C obviously came through for us. As this all unfolds, I'll bring you the inside story. Again, to beat the market you must understand it and today's move off so much bad news is hard to understand, but there was a very specific reason smart money through this together, I'll bring this to you so you can better understand and beat the market.
For more information on becoming a Wolf on Wall Street member, see the links located at the top right of this site.
Brandt Uses Worden's TeleChart and StockFinder 5 Exclusively

Learn Something About the Market From This Chart

Market makers and Specialists get paid to fill large institutional orders. A Volume Weighted Average Price (VWAP) is often used to gauge or as a benchmark as to  whether the market maker/specialist filled the order at favorable pricing or whether they didn't do such a great job. If they didn't fill a large institutional order at favorable pricing, the chances of that institution giving them future business is very slim.
As you know, my proprietary indicator 3C tracks accumulation and distribution in the market. On a one minute chart like I'm about to show you, what you are seeing is largely market maker and specialist activity. The longer charts show the actual institutional accumulation/distribution.
On this 1 min 3C chart of UPRO, areas of accumulation are marked in white and areas of distribution are marked in red. The VWAP is light blue and 3C is yellow. When you see an arrow, it's a 3C divergence, either positive or negative (accumulation or distribution). Watch how the market maker dominates the market to fill an order below the VWAP and in this one chart, you will have gained a better understanding of the inner workings of the market.

Look carefully and the pattern will emerge. To beat the market, you have to understand what you are up against. This chart tells us something else too, I'll share that with you tomorrow.
Brandt Uses Worden's TeleChart and StockFinder 5 Exclusively

We Finally Have

Just about the strongest case for upside/bounce that we've sen thus far.
Brandt Uses Worden's TeleChart and StockFinder 5 Exclusively

A Bit of WOWS Analysis

Last week 3C demonstrated a strange behavior, basically accumulation that takes place before a major swing move , like say the July rally, takes place over a period of days/weeks. Here's an example

In blue, 3C accumulation, in red, 3C distribution. The market is set up or prepped in advance by smart money, they buy low and sell into the rally as you see here in July and then the ascending wedge in the SPY broke.
However last week they took accumulation and distribution on a daily basis, thus we saw many days of gaps down that were accumulated only to be distributed in the afternoon rally. This seems to be because of a few factors, economic reports, which is the least and the totally unpredictable Iran/Israel nuclear reactor start-up, I doubt very much Israel would tip off the market of an impending strike. 
As of Friday, the deadline had pretty much passed as the Russians were in the area (a strike would have caused a huge international dispute if Russian engineers were killed and obviously the the fuel was in the area causing possible fall-out. The market had by Friday, started to accumulate again under more normal circumstances.  It looked as if we'd get a bounce for several reasons outlined at WOWS. We saw that gap up this am which was faded.

The red arrow shows the negative divergence, the gap was faded, but as of 11 and around 2 p.m. we saw accumulation. Minutes after the 2 pm accumulation we saw a nice move up in the market (SPY is being used as a proxy)

Here's a close up of the second area where the divergence occurred in the white box, right after we saw a bull flag, a continuation pattern that suggests a breakout to new highs, it was also around the time the afternoon rallies take place.
Then something went wrong and I haven't found a single financial analysis site that has made this connection. At approximately 3:15 this story hit Reuters.
Here's the market's reaction...

Around 3:45 the all clear was given, however, the lows of the day had been hit triggering a wave of stops-it's evident in the volume.
Tonight's analysis has also shown some very interesting developments that I doubt few have picked up on. Our goal at Wolf on Wall Street is to be ahead of the market. As you can see, 3C allows us to do that very often. 
For now, the long term strategies are set, short term tactics and opportunities are always something I look for as a means of providing extra cash. The major financial outlets have claimed today's market action was due to traders weighing the M&A activity announced this morning vs the market. There are some very real reason s this does not hold water and is just another example of laziness, telling traders what ever they'll buy. What do you think? You have the charts in front of you...
Brandt Uses Worden's TeleChart and StockFinder 5 Exclusively

Taking Emotion Out Of The Trade-Setting Trailing Stops

We don't hit the proverbial 7-bagger every day, not even every month. Good risk management though allows us the opportunity to hit that trade that will make our portfolio's year. Finding the trade is another story, suffice it to say that good risk management gives us the opportunity to do so.

Lets take HGSI. If you look back, we saw what I call "A historic Bear Market rally" that began around March of 2009. Bear Market rallies have a specific function, they are not there by accident. HGSI was a benefactor of that rally. As far as finding the trade, lets just assume we used 3C.

At the March bottom, 3C (read more about 3C HERE) in blue, was making a huge positive divergence, meaning it was showing HGSI under a lot of accumulation, better known as Smart Money quietly buying a large position at low prices, to sell them later at higher prices. We even see a key leading divergence to the far right in which prices are lower then past prices, but 3C is making new highs, this is the best signal of heavy institutional accumulation.

Now we have to choose an entry. We could have bought the divergence at the March lows around $.52, but for most people that probably would not have been a realistic course of action.

If you look close at this chart, you can see a red trendline I drew (click on the chart to enlarge). There are two points, both around $3.35 in which HGSI broke above a resistance zone on increasing volume, this is a more realistic entry for most traders. Within a few days of the last entry breakout, HGSI gapped up over 270%! Now it's time to manage the trade. Considering the circumstances, we  had a large bottom formed in the market, the market was trending higher, etc-you may have chose to let that money ride, but human emotions control much of what we do in the market rather then objective analysis, especially with extremes like this- a 270% gain in a few days. It probably would have been prudent to take your original investment off the table and let the rest ride, but how far is far enough? When do you take your profits? For many this is an arbitrary guess and often it leads to missed future gains which we constantly beat ourselves up over. However, if you are practicing true analysis rather then emotional gambling, you want objective data to support your decision, it's not often that we get a huge trending trade and to miss out on it is a real shame.

Enter My Trend Channel... The Trend Channel is my proprietary indicator and one of the first indicators I created and received an award for using TeleChart, plus being published and becoming a member of Worden's exclusive community of "Knights of the Round Table Who Think For Themselves". It may sound a little goofy, but the honor was bestowed upon me by Don Worden who was one of the pioneers of computer driven Technical Analysis and wrote some of the earliest programs used by major Wall Street firms that influenced indicators created ever since. Now I'm using my Trend Channel as an example, but the point is to find something objective to replace your emotional decisions. Lets see what would have happened using the Trend Channel.

If you had reacted out of emotion, and the emotion driving you would have been fear, fear of losing your fast buck gain, you would have netted a respectable 270%-assuming the higher entry point of $3.35. However, using the Trend Channel you could have netted 710%! The proverbial 7-bagger!. You can see on the chart, by the red arrow where the stop out would have occurred, on a closing break of the lower channel line. Using the Trend Channel alone it is impossible to ever catch the very top or bottom of a trend, it is designed to make the big money in between. the top and bottom 10-20% are the most volatile part of a trend and typically a burdensome opportunity cost. The Trend Channel that I developed using TeleChart's Custom Indicator function (just like 3C) is designed to look at how a stock trades over the course of "X" period of time. It understands how each individual stock trades and then it gives a signal when that stock is no longer behaving according to it's recent past history, this often signals a change in character, this is our exit.

Looking at 3C, it is clear there was a change of character around January 2010 when HGSI was stopped out.

Clearly at 2010 3C showed heavy distribution by smart money occurring. Smart money bought on the cheap and sold into higher prices, they almost always exit the trade into demand, this way they can exit at higher prices, not lower prices. so clearly the price action the Trend Channel picked up on, was correlated very well to the distribution that started taking place in HGSI as 3C shows us.

So we missed some more gains, but we exited for an objective reason, instead of trying to guess the whole way up "is this high enough?". While there were some brief further gains, after that, had we stayed in this trade, we'd be at the same level as our exit and we would have had 4 or 5 months of opportunity cost, all for nothing.



Here are a few more Trend trades the channel could have been used for to obtain excellent results. When viewing each of them though, ask yourself, at what point would I have decided to take my profits and remember that at the time, we didn't have the luxury of knowing the outcome.

I also have custom indicators including 3C and my Trend channel Available in StockFinder

Take a look at what both charting software platforms have available, I use TeleChart and StockFinder Exclusively.

Seeing What The Market Missed

If you don't know me or my work in the field of Technical Analysis, let me just say that I am no Guru; I simply have taken a different approach to the market. I believe in the market maxim, "To make money in the stock market, you have to see what the crowd missed".

The popularity of Technical Analysis along with the lack of imagination for many who employ the strategies and indicators, has led to a herd mentality and usually herds are led to the slaughter. This is why I have spent years breaking away from the herd, thinking for myself and not accepting the status quo that has been handed down in thousands of Technical Analysis books, videos, newsletters, seminars, etc. I've spent time developing my own custom indicators that effectively do what Technical Analysis was meant to do, and that is to uncover the movements of "Smart Money".

Based on my observations I make plans, create strategies and used tactics to fulfill those strategies. I've watched the herd led to the slaughter too many times. There's no end to the disinformation that you are fed on a daily basis, major media outlets have led the charge and I believe that their allegiance is not to the viewer, but to those who have the real money, those that move markets.

I created Wolf on Wall Street to do, exactly what the name implies. 

Trade Guild is here as a way for me to help the individual investor as best I can within the limitations of the site. I have dedicated many, many hours of hard work for the most serious traders and investors and that work is found at Wolf on Wall Street. I'm very serious about the analysis I provide and WOWS members are very serious about the market. If you are serious about the market, then take a look at what we are doing at Wolf on Wall Street. For now, take a look at my secret weapon, the teeth so to speak, of the Wolf... 3C. This indicator has been years in development and most of the hard work has been  in understanding how to use it properly, how to determine what is smart money, what is market makers, what the master plan is, and yes, there is always a master plan as you will see, crashes don't happen overnight or by chance, neither do rallies. Not only is there a bigger plan, but there are scores of smaller plans that are their tactics in establishing their goals. The Street works so much differently then you could ever imagine. I recently showed Wolf on Wall Street members the truth about leaks and inside information when I analyzed 21 stocks before earnings and called 19 correctly before they reported, a success rate of over 90%. So take a look at the charts below and think about whether Wolf on Wall Street may be right for you.

Here's a look at the major events of the last century and a WOWS trade from last month that is making members god money.

In the top pane is one of my custom proprietary indicators, 3C. In the bottom is a well respected and accurate indicator (light blue) by Worden, Money Stream. Even going back to 1929, 3C worked like magic. The crash of 1929 was not an overnight event, Wall Street had been preparing for it for months as you can see by the red arrows. When price rises and 3C fails to rise with it, we have a negative divergence telling us that "Smart Money" is selling/going short. While MoneyStream caught a minor move from March to May, as did 3C, it failed to see the distribution that 3C shows right before the crash actually took place. This alone should give you a new insight into how the market really works. The crash was being prepared for for months in advance. As you can see by the red box, 3C even went into a leading negative divergence, the most serious selling it will register, right before the crash.

Here's the crash that supposedly came out of nowhere in 1987, I've added one of Technical Analysis' most famous indicators at the bottom in yellow, OBV (On Balance Volume). Again, 3C shows this crash was planned for months in advance, MoneyStream and OBV had no hint of it, but 3C showed the actions of Smart Money as they sold inventory into higher prices, not bought, and then most likely went short. While the divergence stretches well over a year, using multiple intraday timeframes allows us to get very close to pinpointing the actual reversal. Even if you followed 3C and got out at the first divergence at the start of 1987, you'd still have saved money that was lost in a relative blink of the eye.

Now, the "Tech or Dot.Com Bubble" of 2000. 3C confirmed the uptrend all the way until early 2000 and quickly registered the negative divergence, smart money exiting their positions  and within month, years of gains disappeared, 3C again was the only indicator to clearly catch this exodus of institutional money.

While the pundits and talking heads on the financial networks were still talking about "Dow 20,0000", 3C gave several warnings that the "Housing Bubble" was coming to an end. 3C even shows us when the accumulation of housing stocks began several years before they took off to form the next bubble.MoneyStream caught the second warning, but there was no more real money to be made after 3C showed us the first signs of distribution during the May-July 2007 period. The money in the market after that was simply opportunity cost, and there was no further opportunity. OBV didn't show the slightest hint of trouble. 3C even caught the fast crash of February 2007 and then showed accumulation telling us there was further upside in the market from there.

The historic "Bear Market Rally of 2009" fooled many into believing the new bull market had begun, 3C called it for what it was , it warned of the mini crash in Dec. 2009-Jan. 2010 and the final top around mid-April 2010. Money Stream was ambiguous, OBV was missing in action.

As I mentioned, I use 3C in all timeframes for all kinds of trading. This is this past week in the SPY. Clearly 3C called the double top that led to the decline, OBV was pretty close as well, but no where near as obvious. Then 3C showed the accumulation that led to Friday's mid-day rally-this as the market was making new intraday lows, we knew we could purchase those lows for a small gain Friday.

What this means for Wolf on Wall Street members.... This is from the trade sheet, it's KIRK from July 26 listed as a short sale. I can't show you every trade, but Friday was an excellent day for our KIRK short. The trade was listed the night of the 26th.

3C showed us accumulation starting a small rally (white arrow) then distribution -this chart ends the night of the 26th.  This is how the market really works, the rally up was no accident, it was pre-planned, the fall of KIRK was no coincidence, clearly smart money sold into the rally, sold what they had accumulated and probably took up short positions. We knew the long trade was safe until about $17 although being an hourly chart, we could narrow the reversal down much closer. 

On this daily chart you can see where we had the short signal and the profit to date from our entry price. Friday was a good day for our KIRK trade, and this in less then a month.

I hope it is obvious to you that the market has changed very little in nearly a century. Smart money controls every aspect of the market, we are fortunate to have our "Secret Weapon, 3C" and many other custom indicators. We see, what others have missed and in doing so, we have broken free from the flock of sheep and have truly become the Wolf.

To learn more about how the market really works, to put yourself in a position to have a real edge that works, consider joining our Wolf Pack. If you are serious about what you do, you have to know the enemy before you can beat them and in a zero sum market, the winners take money from the losers, simple as that. 

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