5/20 Daily Commentary

I have a 2% short position that I got on the aborted rally.  I did not record it because I believed that it would have been swept aside by further rally (it was just a placeholder destined for small loss).   The upward correction was too short in both time and price, forcing a change in the count. 

The decline into tomorrow is just completing wave (iii) so there will probably be a triangle/rectangle for wave (iv).  Probable end of wave (iii) is at the panic low, DJI 9872.

Long bonds and short silver are alternative ways to play the deflation fear and are near where I sold. 

Senate passed a reform bill requiring big banks to divest derivatives desks.  Gee, I wonder if Goldman Sachs will give up it's bank status...

This will shrink the worldwide credit structure and is probably the reason for the swift market decline without the I1 tailwind.