Lee,et:ALL,PLEASE check this out. I will be placing a HUGE swing trade on the YM's shortly. Todays rally fits into the scenario perfectly. Come join me for a dip into the swing trades and get your XMAS Cash early:) This evaluation was from EOD yesterday.
The Dow Industrials tanked 280.28 points Tuesday, closing at 13,041.85. The astrological analysis we mentioned last night that suggests a significant top could form within a day of today, August 28th (Monday's 13,387.33 intraday high was the top so far for this countertrend rally), as a Lunar eclipse occurred, which has often been cited as a favorite starting point for stock market crashes, has us standing up and taking notice. Tuesday's crushing still does not clarify the picture for our various Elliott Wave scenarios, as all still apply. However, with new "sell" signals occurring Tuesday in our key trendfinder indicators, we have to believe one of scenario #s 1 through 3 are occurring. Last night we wrote that we had a feeling a plunge was coming, but didn't have the "sell" signals ! in the PPI and Stochastic indicators to take action. Well, we do now. Our thought here is to grab any rally and short it with an amount we are prepared to lose. We are chomping at the bit to enter a Traders Corner Short transaction.
The trade would be based upon the new sell signals in our key trend-finder indicators, the high probability Bearish seasonal tendency for the stock market from September into October, the favorable shorting neutral reading from the PPT indicator, the flat slope of the upward move from August 16th through August 27th (suggesting maturation), the intermediate-term Bearish Broadening top patterns, the Decennial 06/07 cycle pattern, and the various Elliott Wave scenarios suggesting a top coming no later than a few weeks from now under scenarios # 1, #2, and # 3, and the fact our Demand Power/Supply Pressure measure is still short, in spite of the two week rally. If we end up wrong, and lose the entire investment, so be it; our loss will be limited to the amount invested, and with the upside of a short play here quite high, we are more than willin! g to take that risk. This would clearly be a high-risk, speculative trade. It is a situation where we see too much opportunity to play things conservative here, but would not short a large position, as the PPT lives. Hesitation comes from the Labor Day holiday this weekend and the usual positive bias end of month/beginning of month and holiday brings. Maybe we wait for a small bounce here, then act. A very aggressive trade would have us short now, and stomach any near-time holiday rally, just to be sure we are in play.
I'll let you know when I pull the trigger. BTW, Buy yourself some HD puts,I posted my 1st entry earlier today and I will be stepping in a major way again tomorrow after todays bump. Cheers and as always Good Fortune to you and family
