Replies to post #10275 on Profunds index and sector trading (PRO)

[nspolar]

What if we move up from here this week? What does that do to your map.

I have NAS in b of B of (B). If we go to new highs it sort of blows my map. I have this B as in the early stages, which will take NAS down to about a double bottom, from whence we get a huge move, the C of (B), starting late next year. We would per my map start the (C) down in late ' 06.

At the end of all this, maybe in '10 or so, we will have completed a huge ABC.

[Z-M-L]

The NDX continued its corrective process from the 1440 inter-day low made last Friday. As I stated in Saturday’s Update, “This (decline) of course will not be a straight shot decline, but will have small rallies of Varying Degree along the way”. The rally of the last two trading sessions is one of those corrective rallies. It appears to be corrective Wave-(iv) of a smaller degree Impulse Wave that started at 1508. This corrective Wave-(iv) appears at or near completion; which means the next leg of the DECLINE is dead ahead. The first four waves of this smaller degree Impulse Wave DECLINE has consumed nine (9) trading days; which suggests that this five wave sequence when completed will have consumed thirteen (13) FIB trading days. So the markets should continue their DECLINES into this Friday before the next Higher Degree corrective rally appears.

My STOP LOSS, at this time, is at 1520 on the NDX. I will be lowering this STOP LOSS level in the weeks and months ahead.

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.