I came into today 10% SDS. I shorted DJ futures 10,620, so I'm looking at 40 points in the hole there. I bought SDS 5% at 30.05 so I'm looking at 36 ticks in the hole there. I bought another 5% and stopped out at close to that amount. The market traded up all day and is vulnerable to reversal.
Bottom line, by going in at the SP re-test I held for another 10 SPX points before the market turned around. The market did complete a 5-wave up which completed the wave c from August. After-hours it moved some more.
So, what are the bulls talking about?
a) the recession is over
b) the Fed will do some fresh QE
c) the housing market is recovering
Anyway, the count from the low of last Wednesday in the cash market:
Now, the futures count. I will be the first to admit that I mis-counted the downwave last Thursday evening as a 5. Obviously it was not. Counting it as a 3 allows a prettier count:
Finally, I have been working on a precious metals gauge with the same validity as I1 is for the stock market. I think I have succeeded. Here is the PM1.