Profunds index and sector trading

[Z-M-L]

On Tuesday the NDX moved lower into 11:00 AM EST and tagged the 1448 level. This is the area where the 50-day MA and the 200-day MA provided support and resulted in a rally for the balance of trading on Tuesday and throughout Wednesday. The NDX hit 1495.05, inter-day today, which is roughly one point from the 1496 HIGH reached on June 8th.

So we have two corrective wave counts that are both valid. First, there is a possible Smaller Degree a-b-c correction from the May 17th LOW of 1372.46. If this count is correct, the correction is at or near completion and should start its DECLINE from this level. The second possible corrective count is a Larger Degree (a)-(b)-(c) Wave 2 that began from the March 24th LOW of 1368.08. If this count is correct, the NDX could STILL travel to 1512.75 where Wave-(c) would then EQUAL Wave-(a).

So either way, the wave structure looks corrective in nature. A “close” above 1520 would NEGATE both of these “corrective” wave counts.

So, I am keeping my STOP LOSS at 1520 in the NDX.

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.