As we said in our earlier posts, this market is not out of the woods and further tanking is in order. Our targets are around 815, 768 and even 713.
We will watching for everyday volumes and momentum indicators. This will give us a "tell" if the downside is saturating. This is exactly similar to the inverse scenario of the commodity bust that we predicted so accurately back in july. We believe a multi month bottom is a week or so away.
We will also be watching keenly for 5 waves down. That should give us a reason to start dipping our toe on the long side. Just so that you can synchronize, today is either a full or a part of wave 1. We will see a rally very soon either tomorrow or into friday.
Strategy: A small portion (20%) to short into strength and the rest is dry powder.
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5 comments:
Good to hear from you again. Sold my FXP from last night and looking for a new entry point soon again.
Will SDS be buy at this point?
I would rather wait and buy on the long side into next week.
Specific stocks/ETFs I like ADM, UNG, technology names like AAPL and some drug companies ( I need to look more into these charts).
I would rather enjoy the action for the next 2-4 days. We are very close to bottom time wise, price wise I don't know. Maybe there is another test, may be yesterday's test was enough.
I am looking for a bullish trigger. I will post if and when I find one.
One day doesn't form a trigger. Shorts are very risky now, so I am out of all my shorts (except DZZ) and longs.
Also some of the muni bonds and trusts have ridiculous yields. I am eyeing KTF and PWE.
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