ajtj99's Market Pulse

[market_watcher]

Inertia is that state in time where volatility shrinks into zones of consolidation, owners use this time to take as much stock and squirrel it away anticipating future profits from periods where contributions to volatility are under specific terms and will meet specific goals.

Well, consolidation occurs on the way up and the way down, so I don't think it is just a matter of saying, we're consolidating, therefore the 'owners' are going to make big profits when volatility returns.

Putting it in wave terms, a wave 2 or 4 in an impulse wave down or a wave B in a corrective wave down will all exhibit characteristics of consolidation, but are merely pauses before another move down. So, in my view, the question to ask is 'which wave are we in' and there I'm not so sure that we are in a consolidative wave prior to a move up.