Aug 21

11.00 a.m. Alright, that makes sense, no more talk of 38.2% retracement being the top. One should always feel uneasy when everyone watches the same level. Sold some KEY from yesterday. Still own some KEY. We still expect another consolidation and another push to complete 5 waves up from 975. We could be in the third wave here.

Nevertheless, while we understand we are a tad early, we have started building a short position, currently 2% of our PF. Added a sliver of SPY short.

12:00 Gone for the rest of the day, limit order in for KEY at 6.99.

5.00 P.M Back, unfortunately looks like KEY did not hit 6.99. But no avail, we still expect it to hit $7 next week. On another note, look at the put call ratio $CPCE 0.51 - we are getting there. Meanwhile JNK:LQD failed to make a higher high. Stealth selling going on behind the scenes.