GLOBAL MARKET COMMENTS by Woody Dorsey: Stocks continued their “slow motion breakout” as expected. The 97% Bullish on 2/17 indicated an excess of optimism and signaled the potential for indigestion. Indeed, the market went nowhere for several days so, “there was no Trading Edge.” This illustrates the difference between Qualitative Time vs. Quantitative Time. My Timing studies can indicate when Stocks might make a big move and when they are unlikely to move importantly. I suggested Stocks might not have much “Energy” last week. Quantitative time (Market Motion) is different than Qualitative Time (Market Energy.) Thus last weeks rangy trade was apt. Now, the Reversal on Friday fits with new Upside Market Energy. Date Clusters over the next 6 weeks are dynamic but not obvious. Pattern wise, Stocks may need, within their Breakout, a more defined shakeout before they set up for another move higher.
Repeat: “Small position sizes are preferred. Breakouts are hard to trade.” The Sentiment and Price indicants from 10/15 and 2/2 infer further upside potential.