.bmp)
The XMI did not even make it to a new high. Regardless all of the cash indices 3-waved to their nominal new highs. It seems pretty clear that the lack of downside over 2 full sessions indicates a rectangle 4th wave and not the end of Minuette3. With I1 up I have to buy here.
I noticed your TLT trade, so thought I'd post a count for TNX (10 year yield, tracks as nearly inverse of TLT)
ReplyDeleteUntil proven otherwise, I am assuming we are in a BIG Leading Diagonal on the daily chart, either an A wave or a 1 wave. This count was originally posted by alphahorn, I added the "alt 4".
The count will be invalidated if TNX significantly penetrates the TL that runs from the top of wave 2 to top of "alt 4". If it plays out as an LD, then TNX should drop to 27 or lower.
http://screencast.com/t/YzU4YTQxOGE
Steve
ReplyDeleteI feel as if I take a long position at this point I am buying nose bleed seats to the show. This is definitely day trader territory. I1 is not on a buy and with the technical’s getting close to a strong sell signal; I am going to wait for support to be broken. At what point do you feel support will be broken if we stay in this tight trading range?
Jack c
Pima,
ReplyDeleteThanks for the post. At the time of the TLT trade I was thinking that stock futures had completed Minute3 and that a larger correction was iminent. I modified that view when cash continued it's 3-waves within rectangle indicating 4th wave still in progress. My longer view is that yields will continue to decline but I was using TLT to counter an expected stock decline. That's why I got out so quickly.
Thanks for the chart. Looks like a good count.