Friday, October 22, 2010

10/21 8:35am

Stocks completed a 3-wave up yesterday and overlapped the 3-wave down from Wednesday.  If SPX, DJI, and Comp complete a 5-wave up then I'll wait for the correction and the subsequent completion of another 5 up to go short. This is the most probable scenario.
If, however, these indices do not complete their 5 ups I'll wait for a decline below yesterday's wave 1 highs to go short.   I'll use DJI 11120, SPX 1177.50 as break points for this contigency.

2 comments:

  1. Good morning, Steve.

    In your pre-open post you mentioned you were waiting for I1 to bottom next Tuesday or Wednesday. Will you close all your short positions at that time? Will you also go long then?

    I1 trends up till November 5, but does not get very high, only a 5 (I guess that is actually 0.5, right?) Because of its low value during this time, I'm guessing you would continue to hold a small short position even though the value rises during that period.

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  2. I'll hold short only if critical support is broken. I'd like to go short if SPX breaks 1177.50.
    I have conflicting counts. Comp is 3 up today and DJI as well. SPX has wave3 length issues both as a 5 and as a 3.

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