Wednesday, May 26, 2010

5/26 3:30

Got out of SDS at 35.06 and have re-entered at 35.35. 
The reason for exiting mistakenly is:
I believe that wave 1 from the 4/26 high is done, at the Feb lows. 
In order for wave 2 to correct that large a move there NORMALLY must be time or price or both.  Neither has been sufficient.  The 38% retracement is 10,350.  The time requirement is minimum 3 days. 
Offsetting this is a declining I1, a big deal in my book.
In addition, the market held at critical resistance.  The stop for this M/A is 10,260, a long way up there, so I am lowering it to 10,230, above the shelf of resistance..
I am holding 5% SDS.

2 comments:

  1. Steve

    Would a holiday coming up affect things at all?

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  2. A holiday affects I1 only if it occurs on a turn date, then I trade as if the turn occurs at the middle of the following day.

    ReplyDelete