By All About Trends
Friday We Said:
“According to Elliott Wave theory after the completion of a 5-waves down sequence it typically leads to a 3-waves up counter trend rally. That’s always the issue with waves and trends, you never know how far they are going to go just that you are in them. The best one can do is to lay out support and resistance zones along with other tools of the technical trade such as moving averages and Fibonacci levels.”
11-11 To an opportunist know whats great about the above? Check out the chart notes in the chart below.
In our minds the only questions here at this moment in time are:
- Are you going to miss the snapback rally because you were emotionally shaken out or are close to getting shaken out due to fear? Care to guess what Rocky would say about that?
- Are you going to be able to use this snapback rally as an opportunity to allow your portfolio to catch a bounce (not to mention a few hit and run trades on the longside)?
- Are you going to use it as an opportunity to be able to lay out some short exposure via individual stocks and inverse index ETFs in order to position yourself?
Know why we say all this? Because IF the market did top and this is just the end of the first leg down of a new bear then when WAVE 3 the wonder to behold rears its head you ain’t seen nothing. Wave 3′s are the biggest and baddest waves out there. Now before you get all distraught over all this we have a long way to go to get to that point, so as usual we will take it one step at a time. But at least we have a workable framework to work off of. Should it change we’ll adjust as we go. Remember how we’ve talked about a lot of life being a choice?
It’s been said, you create your own reality by how you choose to perceive things. You have a choice here, you can choose to be a loser and look negatively or you can choose to see this as a huge opportunity coming in the next few months to profit from. Which do YOU prefer! Remember an opportunist is always looking and open for opportunities to be able to profit from. Sit down and seriously think about the above statements.
On to the rest of this weekends index charts:
As you can see the full STO have a bit more to go to the downside here. To us, we see that as another day or two of sit and spin with a downward bias. IF however we were to get a slam open realize that for what it is and thats a capitulation low in the making. We say that because overall this market is severely beaten up here and could go higher at any time.
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