Tuesday, May 25, 2010

5/25 Daily Commentary

Came into the day 2% short. 
Before the open I sold 1% at 37.40.  "Coming back to important (February) lows invites a snap-back"
9:50 Bought 1% at 37.01.  This brought me back to 2% short
10:18  We just completed a 5-wave up. Looking to sell back 2% SDS.
10:25 Sold 2% at 37.05.  This left me flat.
11:50 Bought 1% at 36.83
12:45 Posted the count calling for 1 more high
1:36 Stopped out 1% at 36.29
3:20 Bought 5% SDS at 35.88.  This is what I had been waiting for all day. 
3:36 Market indices hit their orthodox highs.  DJI orthodox high at 10,022.
The 11:50 post stated the following:
I1 got us this far. It does not mean that the market is immune from rally. I took a good profit this morning. I have good reason to believe that the market will give me a very good entry point a few hundred points higher on DJI.
I1 double-topped today and yesterday and starts it's actual decline tomorrow.
Currently 5% short via SDS.
Wave count is double-zigzap as posted 12:45.  Current wave chart:

The market rallied up to strong resistance at the 15-minute moving averages:

Came in with a good profit and had 1 losing trade with minimal capital.  Entered short near the close and near the highs for the day.  Trade is underwater in the evening futures session.
Futures count as a simple ABC:


To recap:
Wave 2 is in force, but the market is subdividing as ABC
I1 was in a double-top yesterday and today.  I1 starts declining tomorrow
Market traded up to strong resistance (15-minute M/As)

The critical resistance is above the market (DJI 5-minute, 380-unit M/A) at 10,132.  Futures have their own version of this the SP 85-hour M/A +18 points.  Guess what, the market came up to this today:


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