Jun

26

 The period right before a hurricane is very often a good time to surf as there is a large fetch that brings up big waves. After the storm has passed, and there are calm wind conditions, there might be waves for days after, although they are ever decreasing in size and power. Even though there is no hurricane wind forming them, there will be a left over swell. In fact, some of the best, most enjoyable surfing with great shaped waves comes from the leftovers after a hurricane.

Waves after a hurricane are generally smaller, less powerful, frequently more organized, more predictable, and better shaped then the waves before and during the hurricane. I'm curious if one can find a parallel of waves after a hurricane to the action of the markets after a cataclysmic event……Has the market shown to be more predictable in any time frame after such an event? Is there any way to reliably make such a prediction? Would the markets be more orderly? After the initial volatility has gone, is there an attenuation?


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  1. steve leslie on June 27, 2012 11:55 am

    I know in the case of individual stocks There is a breakout followed by a gradual pullback on light volume. In my experience an excellent technical event is a gap where an island formation occurs. this could be construed as the eye of the storm a pause if you will. This is then followed by the next event which is a further push to the upside. It is quite easy to discern on a chart.

  2. Bill Wolfe on June 28, 2012 10:02 am

    In my opinion, stock market waves and ocean waves are very similar and, if identified properly, can be very profitable.

    The theory of my wave structure is based on a law of physics that for every action there is an equal and opposite reaction.

    This action/reaction shows a definite rhythm with extremely valuable projecting capabilities to the trained eye.

    If allowed in the TOS (I could not find it) the reader may visit my websites for incredible examples: www.wolfewave.com and www.wolfewavesignals.com.

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