In Wednesday’s Update I stated that, “by closing the QQQ between the price of $36 and $37 on this Friday, Expiration Day, the “boys” would retain a HUGE PROFIT”. Well “the boys” demonstrated their “arrogance” towards the investing community with their “brazen” display of CONTROL over these markets. The “boys” manipulated the markets ALL week and “closed” the QQQ on Friday at $36.44; almost a perfect split between the $36 to $37 range. The Friday of June 18th was the Quadruple Expiration in Stock Options, Index Options, Futures, and Options on Futures. The “boys” manipulated the VARIOUS stocks and markets ALL week to assure themselves a HUGE PAY DAY. Make no mistake, the “Game is Rigged”.
So where do we go from here? So far, the June 8th HIGH at 1496 counts well as a completed Wave-(c) of an (a)-(b)-(c) Wave 2 Correction that began from the March, 2004 LOW. The completion date of June 8th is also supported by a completed fifty-five (55) FIB trading day movement (when the two trading day Holidays are included). Because of the “potential” Smaller Degree Contracting Triangle formation from the 1496 HIGH on June 8th, I cannot yet rule out one more push up to the 1508 level or even the (.786) 1519 level next week; to complete the corrective process. However, a move back BELOW 1455 in the NDX would NEGATE that potential and confirm that the HIGH at 1496 did indeed complete the Wave 2 of C correction.
In conclusion, the “boys” have completed their short-term “larceny” and are now free to (or have) set the markets up for their next “larceny”. The technical data suggests that their next “larceny” will be a SWIFT and SHARP decline into the early to mid August timeframe.
I am keeping my STOP LOSS at 1520 in the NDX for the next few days.
Currently, I have a position in the Rydex Venture (RYVNX) Fund, established on 04/12/04 at $24.92, within the Aggressive Portion of the portfolio; while the Conservative Portion of the portfolio has been in Cash or Cash equivalents since 01/02/04.
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