Monday, August 16, 2010

8/16 Daily Commentary

I got a surprise when I looked at EWI's STU.  They count this morning's decline as the end of the 5-wave from Monday's high.  To my eyes it looked like a clear 3 down, not 5.  Nonetheless, the implications are for higher prices if they are correct.  I've covered my DJ futures short at a slight profit and sold the QID at 17.92 for a slight profit.  I'm still 8% long DXD and waiting to see if they are right.  My stop remains .5% above the 30-minute M/A.
No chart tonight because I cannot figure out the way that they count this morning's decline.  In addition, they are now labelling the waves from Monday's high as Sub-Minuette which I initially did.  So, 5 Sub-Minuettes equals 1 Minuette complete and working on Minuette2. 
I'll update again later tonight with charts and projection.

3 comments:

  1. Hi Steve,

    I only read three chartists, and you are one of the three. The other two are in agreement with EWI, and they both are projecting that we are in C of an ABC minuette 2. If C = A, we would be looking at maybe 1087 or so midday tomorrow, and then another big move down.

    I'm keeping an eye on the Euro as it looks shaky. Er, along with the Yen and pretty much everything else.

    My guess is that the EWI count would be in agreement with what you have projected for I1.

    Josh

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  2. Steve,

    In my experience, EWI is going to be wrong.

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  3. Josh
    I'm keeping powder dry for a rally. Thanks for the post.

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