Mastering Market Timing: Using the Works of L.M. Lowry and R.D. Wyckoff to Identify Key Market Turning Points
Mastering Market Timing show how Wyckoff’s Point and Figure Charts plus non-Wyckoff advance-decline indications are useful market tools for augmenting the Supply and Demand study of market tops and bottoms.
Introduction:
Market timing doesn’t work! At least that’s what some people would like you to think. The Random Walk Theory and the efficient market hypothesis tell investors market timing is a fool’s game. Academics have made careers out of ridiculing market timing.
Mutual fund companies have issued hundreds, if not thousands, of reports deriding market timing while extolling “buy and hold,” pointing out the investment disaster that awaits any investor who happens to miss the biggest up days in a bull market. (Curiously absent are similar reports about investment performance when missing the biggest down days.)
Without a doubt, successful market timing is not easy. But it’s not impossible, and when properly applied, market timing can generate big rewards for the time and effort expended.
We should emphasize that the equity market timing discussed in this book is not short-term in nature. No attempt is made to formulate
short-term or day-trading timing strategies.
The timing methods described in the following pages are aimed at the longer-term investor whose main interest is participating in the market’s primary uptrends—bull markets—while avoiding the primary downtrends— bear markets.
Thus, traders looking for systems detailing short-term entry and exit points for the market or for money-management techniques should seek advice elsewhere. Our intent is to provide investors with techniques for identifying major market tops and bottoms in the equity market based on the works of two masters of market analysis, Lyman M. Lowry and Richard D. Wyckoff.
Contents:
- Richard D. Wyckoff and Lyman M. Lowry: The Analysts and Their Methods
- How Major Market Tops Form: Part I, The Preliminaries
- How Major Market Tops Form: Part II, The End Game
- How Major Market Bottoms Form: Part I, Panic and Capitulation
- How Major Market Bottoms Form: Part II, Accumulation and Breakout
- Building a Cause: How R.D. Wyckoff Uses Point and Figure Charts to Establish Price Targets
- Identifying Major Market Tops and Bottoms: Other Tools to Consider
- The Curious Case of the 2000–2001 Market Top and Demise of the Secular Bull Market
- A Wyckoff/Lowry Analysis of the 2000 Market Top
- Where Are We Now?
- Putting It All Together