I see what Moe's looking at. If you look at a 60 min chart of the SPX, you can pretty clearly see a 1,2,3, and now 4th wave move. When you look at it on a daily, it's not so clear. So, the expectation is that it now turns south to complete this wave count. THEN it move up in a new full B. The move down should be this week. The expectation is for the month of March to be that key turn.
The way 'they' play this is many are giddy now again about the market. So, they are going to let all these market orders hit the morning open. Then, about 30 min to an hour into it, they'll start selling it off into that buying.
650 is the target on the downside. That's where you start you buying in whatever stock you're looking at. I suggestd strongly the TNA around $10 to $11 if you can get there.
Even the triple financial (FAS) could be a big winner. But I like the broader index.
BRCM has broken out officially now. But if the market moves back down in one last swish, BRCM is going down too. How far? Probably no more than the $17s because that's the breakout point of the declining trendline it gapped out of. So it should only do a retest of the breakout point.
At that level, BRCM options should be your play.
In other words, this rally once we get this swoon should be used as a leveraged play because you don't get very many chances that are so clear to bet big on a very low risk play.
