8/25 Daily Commentary

The stock market completed Sub-Minuette 3 this morning.  The housing number was bad but stocks took off so I figured that was all we would get out of Micro 5, the breakdown from the triangle formed from yesterday afternoon.  Sold 4% SDS at 35.85 and covered the last 2% NQ futures at 1765.  DJI advanced in simple abc.

Futures advanced in a different abc.

Even after reducing shorts I was still short 10% SDS and 8% QID.  Added 4% SDS at 35.17 and 2% at 34.86.  Put back NQ shorts for 2% at 1787.   I don't expect the SP futures 30-minute M/A envelope to be exceeded at 1059, but I'll stop a quarter of my position at 1063.  I'll stop the NQ futures using SP M/A.  Why use a stop from a different market?...because tech relative strength today should give rise to relative weakness going forward, but I find SP M/As more reliable.

Looking forward to Minuette5 to finish off Minute3.  EWI counts differently and considers today's low as the first Minuette of Minute 3..  I'll evaluate tonight and tomorrow.

I1 is still set for a bottom 9/2.