Monday, August 30, 2010

8/30 Daily Commentary

Just got back from a trip to handle some family affairs.  Met Jack C. for lunch and we had a good time. 
I promised last week that I would re-calibrate the wave counts prior to the I1 cycle completion.  So, according to my count we are currently we are in Minuette 5 of Minute 1 of Minor 3.  DJI Min4 has no overlap of Min1 while SPX has trivial amount of overlap. 
This count is adapted because the I1 bottom is due Thursday and the count delivers a bottom within the expected timeframe.  It is at variance with EWI count which is that Minute 1 has completed and the current downwave is within Minuette 1 of Minute 3.  This implies a longer period of slide to finish Minute 3 than I1 allows.
I'm currently short 1% NQ futures from 1787 and 2% DJ futures from 10179.  16% SDS and 8% QID.
I plan to go flat at Minute 1 bottom Thursday.

3 comments:

  1. Steve, any objectives for a bottom. Breaking 1040 seems like a no brainer with little in the way until 1010. If we break 1010, 960 seems like a nice extension to top at but is that too deep for Thur? BAR

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  2. Great post, Steve. Appreciate the update. You have stated that you plan to go flat on Thursday. So you will not go long to try to catch the anticipated wave 2 up?

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  3. wild market this morning. Very deep retracement so far, especially for what should be a 4th wave. I am count the bottom of wave 1 of 5 at 1056.43. Wave 3 completed at this morning's low. Wave 4 is in progress and getting close to overlapping wave 1, but no overlap yet.

    What's your interpretation of this morning's sharp move up off the low, Steve?

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