Wednesday, October 06, 2010

 

Five waves completed


This is the big picture carried over from the prediction I made on September 2nd. If this count is right then we should expect stocks to top very soon, this week or possibly today, and for stocks to fall in five waves down with three wave (rising) corrections. The minimum point on this chart is if I am wrong about the big picture and the 5 waves up from 9,850 are the beginning of a big rally.









On this 60 minute chart you can see the five waves up have been completed from the B wave low at 9,850. So either we start falling in a huge C wave down below 9,600 or we fall in a more meandering correction of the 5 waves up from 9,850. If we keep going up from here I am completely wrong and I go back to the drawing board. Either way there is no trade here. It is better to sit back and jump on the down side once it becomes clear. You miss the ego enhancing joy of selling the top but you gain the piece of mind of joining an established trend. (Many years of practice have taught me that selling tops and buying bottoms brings far more pain than it's worth.)

Labels: ,


|

<< Home

This page is powered by Blogger. Isn't yours?