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Small long Nas at 10975 … stop tba … limit tba
This is my only US election trade … yeeha !
Never give up, never surrender.
Small long Nas at 10975 … stop tba … limit tba
This is my only US election trade … yeeha !
Closed at 11025 … a safe 50pts
Never give up, never surrender.
This latest drop is rather confusing and *might* be very negative for the markets.
Most indices reached their ‘C’ targets yesterday. Then we got a sharp bounce followed now by this new drop. It *might* be the end of ‘wave C’ but SPX has now exceeded my target area.
The bearish view is that the ‘bounce’ yesterday is all we are going to see for ‘big B’ and we have already entered ‘big C’ down. In which case we’ll get a 3, 4, 5 Monday/Tuesday.
I mentioned on this chart of NYA that the potential for a bounce was minimal. Is that it? Or do we have more of a bounce to come?
I don’t know and I don’t have a position.
DOW: however, for the DOW one must assume that yesterday’s low was completion of ‘wave A down’. It got to the 26,100 area target and bounced from the 200 MA twice.
Looking at the daily chart suggests we’ve had ‘A’ down from the top. The target is an ABC to overlap 24,785. Wave ‘A’ was 2,800 points so we can work upwards from the overlap target to give a ‘wave B’ rally target of 27,600 or so which would also fill the gap and overlap ‘wave a’.
In a perfect world that rally will now happen and take a while in order to create divergence (see chart). However the world isn’t perfect.
My plan here is to wait and see if any rally materialises and look to short at higher levels.
There’s a problem here with the FAAMGS. Throughout the virus rally the market has been driven higher by the FAAMGS to the extent that everyone is fully weighted or overweight. This week the FAAMGS produced excellent results in the main but the market looked for any excuse to sell. So the tone has changed from ‘buy the dips’ to ‘sell the rallies’. The FAAMGS appear to be ‘priced for perfection’ and probably have 10% to 20% downside from here. That will limit any rally attempts in the overall market.
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