Came in Friday 4% SDS. Took 80 points out of DJ futures with a short near the highs and cover near the lows. Bought another 3% SDS at 31.88. Sold in ARCA at 31.84 to go into the weekend with 4% SDS.
The cash count is the most important. Futures already count the abc from Friday's low as complete. Cash needs 1 more high to complete it. I'll short futures Sunday on a rally above Friday's high.
SPX took out the Minute 2 high in the count as of last night. Therefore the new count is that Minute 1 ended last Friday and Minute 2 abc is in progress and complete with 1 more minor high.
I1 bottomed yesterday, but the I1 move up into 9/10 is a weak one, ending below 3.25. Therefore, I am following I1 longer hold rules which allow me to carry very small short positions through this period. I am still using 10,481 as my stop.
Steve
ReplyDeleteThis next wave down should be the start of the 3rd of a 3rd from the 4/26 top. Do I have that count right?
Jack C
Steve
ReplyDeleteForgot to add, that should be about 2000 points in the dow. a 5 wave down in the 3rd of a third with the 4th wave correcting 1/2 of the 3rd wave. Just trying to get my mind right for market timing. I want to get out of the way of the 4th wave and then go back in to the bottom of the 5th. Also want to get out of the way of the corective ABC when it is finished, maybe even taking a short term long on the ABC, it should be a good size ABC. If you miss the bottom of the 5th wave you could still get out at the bottom of the B wave in good shape. I'm interested in your thoughts on how to play this being I1 is down with a long term short all the way to 11/15 and yet there is going to some very large corrections along the way.
Jack C
Jack C
Hi Jack,
ReplyDeleteWe got the minor push higher in the futures to what should be the conclusion of Minute 2. Therefore, we should now be in Minute 3 or Minor 3.