Saturday, October 19, 2013

SPX vs George Bayer's Rule # 1

... Periodically the speed comes to a stand-still. At such times the planet moves from a direct motion into a retrograde motion or from a retrograde to a direct motion ... It is advisable to plot this Mercury speed ... through an entire year and note the effect of such changes. We obtain tops or bottoms ... When the previous movement is down, Wheat must be bought on weakness of the day; if the market moves upward prior to change of Mercury’s speed, short positions must be taken on strength during the day mercury changes its speed.
[George Bayer (1940): Stock and Commodity Traders´ Hand-Book of Trend Determination. Carmel, California; p. 13]


On Friday the S&P 500 closed on low volume and with the narrowest intra-day trading range since September 27th (more HERE)