The SPX may be playing out as a leading diagonal off the 1018
which would be a 5-3-5-3-5 (waves) down with the SPX now in the
final 5 waves down. If true, then we should expect a healthy
retrace once complete (maybe .618-.786 of the decline).
Another possibility is that the SPX is playing out as an ABC (W)
then (X) and now ABC (Y) double zig zag lower. (chart
attached)
It's too early to say what is unfolding for sure at this time
but don't get complacent on the short side - manage your trades
accordingly.
I went long the sds around 46.38. Could you give me an example
of "managing this trade accordingly" would be. I could put a stop
in at 45.50 just below tadays low. Or a trailing stop of some kind
3-4%.
The information posted by you is very helpful as far as where
price levels may go. But I really get confused as what to do with
it?
Quick Comment
Posted by steve on 11th of Aug 2009 at 12:00 pm
The SPX may be playing out as a leading diagonal off the 1018 which would be a 5-3-5-3-5 (waves) down with the SPX now in the final 5 waves down. If true, then we should expect a healthy retrace once complete (maybe .618-.786 of the decline).
Another possibility is that the SPX is playing out as an ABC (W) then (X) and now ABC (Y) double zig zag lower. (chart attached)
It's too early to say what is unfolding for sure at this time but don't get complacent on the short side - manage your trades accordingly.
Help
Posted by RM686 on 11th of Aug 2009 at 12:35 pm
I went long the sds around 46.38. Could you give me an example of "managing this trade accordingly" would be. I could put a stop in at 45.50 just below tadays low. Or a trailing stop of some kind 3-4%.
The information posted by you is very helpful as far as where price levels may go. But I really get confused as what to do with it?
Steve- would a sign we are turning up be the 55 stoch crossing >20?
Posted by chlo888 on 11th of Aug 2009 at 12:03 pm