Monday, February 28, 2011

2/28 Daily Commentary

In the stock market wave Minute2 completed this morning in the futures and the cash.  I'm still short NQ at 2359 with a stop at 2364.50.  I bought the final 2% SDS at 21.17, bringing me up to 6%, which is the maximum exposure without trend profits "buying" more position.  I'm holding 4% TLT with an order tonight and tomorrow selling at 92.71. 


I'll reiterate why I'm bearish until 3/3-3/4:
a) Last Thursday I1 went into a minor dip from then until 3/4

b) The Elliott wave count was complete for the 5 up from July. This is subject to extension as outlined in the Weekly.
c) The DJI has broken it's critical support and has since rallied back to it.
d) There is what appears to be a 5 down from last week's high and a 3 wave retracement

I expect the market to advance between 3/4 and 3/25 due to rising I1 to a high absolute value of +8.6.  If you review the I1 charts in Intro and Concepts you will see that 8+ is a value for I1 that has always been associated with strong rallies. 

The current market count is "unfinished downside business" but I have been wrong on the count before and I'll use stops beyond today's highs to sell the SDS if the rally continues.

2 comments:

  1. Steve

    Could we be in an ABC with A done and B and C to come to double top before starting the expected wave 3? Everyone would be fooled!!!

    Jack C

    ReplyDelete
  2. Jack,
    I think we completed a 5 down and an abc up.

    ReplyDelete