Wednesday, May 26, 2010

5/26 1:00

I try to communicate what I'm doing and the reasoning behind it.  However, people being people, that sometimes gets filtered by pre-disposed thinking.  I would like to know if my tactics for dealing with a potentially significant short-term low were effectively transmitted.  I1 on 5/25 was 4.35 vs. 5/24 4.54 so there was no decline momentum on 5/25, just a marginal nudge off of the high. 

I will reprint the 5/25 early posts:
I came into 5/25 at only 2% short.
5/25 pre-open

Prices came down to Feb lows and bounced. I sold 1% SDS at 37.40. Coming to important lows invites a snap-back.

5/25 9:50

One more low to complete a 5-wave from yesterday. This COULD be the final wave of the 5-wave from 4/26, which coincides with a re-test of the Feb lows.
This is why I'm taking it easy here, not getting aggressive.

5/25 9:00
If SP futures decline below 1041 I'll short 1% via SDS. Below 1038 another 1%.
Posted by Steve Koteles at 6:02 AM 0 comments
(Note:  they never did so I never shorted on that weakness)

I will reprint the 5/25 11:10 post with DJI at 9880:
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.
I posted a chart showing that (v) was done or will be done with 1 more low.

That should have been the que to skidoo from any but long-term short positions.
Can I do better?

2 comments:

  1. I'll try to answer your question. I have been following your posts for about 2 months now. Your interpretations of the Elliot wave system seem to work very well. Todays prediction of an SDS high of 35.30 was brilliant. Thats what I like to see. I do not understand all the EW technicals. I look for calls of tops, bottoms, direction, entry points, stops. For me simplest is best. One more thing: thanks for posting.

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