Profunds index and sector trading

[Z-M-L]

My strategy at the 1365 level is to step aside into CASH, and wait for the market to tell us what is going on. At that point we will have three waves of the next Higher Degree. What no one knows, that uses EW, is whether the three wave decline from January 20th at 1560 to 1365 is an A-B-C Wave 4 correction OR is it Waves (i),(ii), and (iii) of an unfolding Impulse Wave decline...which means it will sub-divide into Wave (iv) and then Wave (v).

If after reaching the 1365 level the NDX subdivdes into a smaller degree three wave correction, does NOT exceed 1460, and then reverses to move back BELOW 1365, then we have an Impulse Wave DECLINE; which will then have to be corrected...and I will go long.

If on the other hand, after reaching 1365 the NDX moves back above 1460, then all this was since January 20th was a three wave corrective decline and new HIGHS are ahead of us. I will use 1460 as my BUY STOP to go long.

So I will step aside at the 1365 level and let the market tell us what will happen in the short and intermediate term.

IMHO