Weekend Whirl and Wierd Wollie Wednesday

Sometimes I'm just amazed at it's predictive power. Maybe I shouldn't be, but show me something more accurate for targeting highs and lows. Not always exact, as nothing is, it just keeps plugging along.

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So, its targeting down into next tuesday. I see a couple of things that could trip us up a little bit here. First, it tagged the lower up trend line on friday and secondly, we face the vaunted "WWW" on wednesday. For those not familiar, WWW is an acronym for Wierd Wollie Wednesday. Its significance, as espoused by none other than 16 time winner of the Timer of the Year Award, Don Wolanchuk, is that there is a tendency for the market to be taken down into the wednesday before the week of options expiration or OE. OE occurs the third friday of every month, being on the 16th of October this month. Therefore this coming wednesday is WWW so we might expect a low at that point. So, low maybe tuesday or wednesday.

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Those who dont know Don Wolanchuk are missing out on a real market guru gem. He's controversial, outspoken, sometimes arrogant......but he's also good at what he does. So for me, that trumps any fault, and we all have them. Besides, once you get to know the old geezer you'll see he's of a large heart for people. His picture is, by the way, next to the word mega-bull in your dictionary. Don worked with Joe Granville for many years and took his on balance volume work to new heights with his clx. Someday in the future I'll delve into that system for you....but by necessity due to the clx's many intricate features, it is beyond the scope of this blog. However, I can direct you to a full course on the subject as Don has done for many others over the years. I was fortunate enough to get in on the ground floor of his technique in the early 2000's......it has become an integral tool for me and it was the key he says to winning so many timer of the year awards.

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On the oppisite side of the bull, if the bear case is taken, this tide turn date and/or WWW will be rejected and the market will continue the short term trend right on down through the trend line and we "crash" at that point. With bearish sentiment as it is right now, not a likely scenario.

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I have been running some backtesting on a simple strategy of using the tide turn dates to buy and sell the eminis (ES). I'll get those up on the blog, hopefully this weekend.