UNIT 3—SMI Basic Lectures on Technical Market Analysis. A change of pace is provided by this series of twelve lectures. Unlike the first two units, which are printed, these one hour lectures are recorded on cassettes. Many students find it easer to absorb the concepts if they are told to make sure that none of the most important points have been ‘overlooked by restating them verbally and by illustrating them further by numerous examples. ‘These presentations provide still more techniques of trading thatwill be helpful in day to day market activities, Tuition $180, Basic Lecture 1—Philosophy, History & Basic Concepts This tape is primarily a review. In order fora study of advanced applications to be successful, itis necessary to begin with a clear understanding of the basics. The review in this tape reenforces prior discussions of the Wyckoff way of ooking at the market and the basic laws that are the foundation of the Wyckoff method, Basic Lecture 2—Trends The Wyckoff method teaches that the most important thing to know about the market or a stock is its line of least resistance, which is the trend, Trends are subject to mechanical definition. However, real life market situationsare not, This is where the art of market analysis comes into play. Basic Lecture 2 helps the student learn this art. Italso helps develop his ability to trade trends. Basic Lecture 3—Accumulation In the stock market, itis generally true that everything that goes up eventually comes down and that everything that goes down eventually comes back up. For this to be of any value, the investor must know how to determine when, ‘Accumulation is the preparation for an upward move. It is a process that unfolds gradually. Its development can be detected in time to take a long position. This lecture develops the students skills in detecting accumulation, Basic Lecture 4—Climaxes & Secondary Tests For most investors, itis much more difficult to exit a position than to enter one. Greed is usually the motivating factor here. This is why it is essential to have a through understanding of climaxes and secondary tests. They mark the termination of up and down move. The examples covered in this tape will expand the students ability at identifying these important actions so that he may be able to handle his positions in a more profitable manner. Basic Lecture 5—Springs and Terminal Shakeouts ‘An area of accumulation must be tested many times before astock can havea meaningfuladvance. The mostimportant of these come as the price tries to move into new low ground. The ability to judge supply and demand at these critical points helps avoid costly mistakes and adds to profits. Developing this judgment can only come through a detailed study of numerous case histories like the ones outlined in this tape. Basic Lecture 6—Jump Across the Creek ‘The professional trader completes his accumulation just as the price of a stock is leaving the trading range on the upside and entering the early stagas of the uptrend. Here is where the ability to judge supply and demand is most important of all for an individual anticipating a long position. This is because the bulk of his position s taken in this area, ‘A mistake here guarantees a loss. The examples in Basic Lecture 6 assist the student in developing the ability to properly appraise the demand/supply relationship at these critical points, Basic Lecture 7—Upthrust After Distribution Basic Lecture 7 focuses on the final stages of distribution, which is the preparation for a decline. Many investors avoid the short side of the market. For some reason they believe iti different and are afraid of it. The final stages are some~ what different and require extra study. However, there is no reason tobe afraid of the short side of the market. The case studies presented in this lecture will develop judgment in an area that over the years can be extremely profitable. Basic Lecture 8—Counts and Count Guide Figure chart counts are one of the biggest problem areas for Wyckoff students. Whatis required isan understanding of phases, accumulation counts, distribution counts, major base counts, intermediate counts, reaccumulation counts, redistribution counts and combining counts. There is a groat doal hore that must all be thoroughly understood if accurate counts are going to result. Anticipating too much or toa little can be costly. This tape helps develop the ability to know what to do and what to avoid, ‘Basic Lecture 9—Speculating-Taking a Position ‘lof the stuay of a market or stock situation is aimed at one thing—taking a position. The decision to take a position and actually taking it are two processes, The first one can be done properly and the result still be a loss because the second process is poorly handled. There isn't a great deal of judgment involved here, but there is a lot to remember. This discussion reenforces all these points. Basic Lecture 10—Wyckoff Wave & Optimism-Pessimism Index ‘Step five of the Wyckoff method instructs the investor to time trades with anticipatedturnsin the general market. One of the best ways to anticipate a turn is when there is a lack of harmony between the effort expressed and the result achieved. This can be bast detected through a study of the Wyckoff Wave and O.P. Index. How tojudge when there isa lack of harmony and what to do about it are explored in depth in this lecture. Basic Lecture 11 & 12—Step-by-Step Analysis of Accumulation, Step-by-Step Analysis of Distribution Those two tapes are devoted to putting itll together, which is what every investor must do every time he sits down to study the market. These two tapes outline how to do it during the most important phases of market action. Successful analysis of accumulation and distribution will turn ordinary profits into extraordinary profits. These lectures help develop the proper analytical skills.