You are assuming that everybody trusts the government to participate in the 401K scam. I have no 401k money, all is paid off in taxes.

What is a tell sign that that count is unfolding? Does it have to come now or after a due correction? Thanks again!

Steve, Is target of the wave C consisting of 5 waves going to be 1018 or much higher? Is there a projection for that wave based on known wave A? Thanks!

IAG is making a new 52-week high today, the volume is 40% above average so far. It would make a great short when it finally runs out of steam.

Would anyone keep posting this chart (with the same settings) as we progress into the next week closer to the options expiration? This is the best chart I've seen to explain the wave structure unfolding. My thanks goes here.

A brilliant observation, cwa! So, EMA(13)=1086 is a likely target for a pullback. Your comments, Steve, provides a good perspective on what to expect next week. Thanks to both of you!

rp, Yes, IYR is within that multiweek channel, that's amazing! Thanks for the targets on XLF, I'll keep checking your trading postings on them. Also, check the $NYMO: I think we are near resistance on that indicator as well.

rp, you've timed your entry well. Your call on the double bottom on the UUP was spon on, for the time being. What is your target for XLF? Matt projected a fall to 1070ish on the $SPX, I think.

This information helps a lot. Thanks, rp!

Steve, Also looking at the chart and your formula, how do you measure (x)?

Steve, What's a target of your pullback? I observed that it would occur after one trading day after making a high when the stochastic at the 60 minute charts is underneath the 20s area. I am referring to Matt's chart from last night's update. I am looking for an opportunity to lighten on shorts, if the market continues being strong. Thanks! (edit: the chart in reference is not from last night's update, so I don't remember where I saw it. Sorry!)

Thanks, rp. I am staying short and will start covering if we move up into the wedge. I expected this kind of sharp move up to occur (similar to an earlier upmove in AIG last week).

rp, I see. Do you expect to re-enter your long FAZ on a retest on the lower purple uptrend line then? My entry was at the 38% retracement and it did not work so well today after a massive move up. Do you reckon a 50% retracement will work better?

rp, please give me an example to illustrate your strategy. Setting stops is my weak skill as of now.

rp, what are your stop loss percentages you used on ultrashorts? I am now 5-7% down on them, and watching what will happen next. GDX does not go higher today, and that's the strongest sector IMO and the forerunner in the market. Thanks!

rp, Your notes are very enlightening. How could you tell the difference between a short position stops being hit versus genuine buying on a breakout? I am curious. Also, nice call on AIG, it could reach 40 tomorrow and be an excellent short for its initial drop.

ditto! Thanks a lot, Brian!

I am keeping a buy order on SRS at 9.65. The target should be the MA(200) on IYR, if the market gets there or whatever the market would give us. We may only get a 10-15% correction at this time. The time to buy and hold SRS would be in early spring, IMO.

rp, right! My only consolation is that the advance today happened on lowe volume http://www.investors.com/StockResearch/Quote.aspx?symbol=AIG&fromsearch=1 (21% lower than the daily volume).

rp, It moves like a three-times levaraged fund, it's crazy. The market could begin a monstrous short-covering rally or just  stay in its range for a while. I am afraid to play it on the long side though.