Tuesday, February 8, 2011

2/8 pre-open

The Euro completed it's abc correction of it's initial downleg.  By rallying beyond 135.95 it actually clarified the count.  I was stopped out at 136.01.

 I shorted at 136.28 when it broke below the gray line by 20 ticks and rallied back to the green. This is my basic entry and stop tactic when strategy dictates entering on trend change. Stop is 136.62.
Gold looks like it's on it's way to 1374.
The stock market has another wave to complete a iii wave.
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2 comments:

  1. AnonymousFebruary 8, 2011 at 6:45 AM

    Steve

    On the EURO, I too thought it was an ABC since the low of Feb 4th, but let me throw something out there for you to think about.

    The drop on Feb 7th (early morning to mid-day) on the five minute chart shows five waves down without any overlapping or EW rule violation (that I noticed). So maybe, just maybe, the 5 waves down (from Feb 2nd) ended on Feb 7th and this rally from the low on Feb 7th to now, is wave A of the standard ABC wave 2 correction. Which means we should have a wave B down, then a wave C up for the next several days.

    Does this make sense, or am I missing something? Maybe you have already seen this.

    Thanks for sharing your thoughts. They are greatly appreciated.
    DennisP

    ReplyDelete
  2. SteveKotelesFebruary 8, 2011 at 7:16 AM

    Dennis,
    There was an irregular flat that preceded the 5 down that transformed it into a 3-3-5 for the B wave of what should be the completed ABC.

    ReplyDelete

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