Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Wednesday, January 9, 2008

Trading advice

I always think that the smart thing would be to play the 3rd waves exclusivly when swing trading.... Just be conservative wait for them to form, then confirm. and place a bet... Then clear it, and wait for another one.
If you place a bell curve on a trendline, you get elliot waves(Roughly)... and the Key is to get in in the first 20% and get out in the last 20%.... Which means you catch 60% of the move. And preserve capital.

So, as I throw out my Chartatology, all I know is that we are in the third wave... and it's getting long in the Tooth..... Todays action will either confirm the slowdown.... or we willl continue to sell off agressivly..... but Worth noting is we can always get more oversold.....

We broke some serious technicals.... and there is no confirmed support resistance bottom for quite some distance. The only thing below us are Fractal supports, IE Fibanachi

In the 6 month time frame.... Today, and this week, and now.... emotionally, based on technicals are where the majority bulls give up...... Wave 3, Wave 3. Then we get a bounce Wave 3, Wave4(maybe next week, or in 2 weeks.) This gives them hope, Then we get wave 5.... And that will be Capitulation........ All of this is on the 6 month time frame.... after this we can talk about the 2 year time frame....

That is all my Chart-astrology, psychology..... Theory (AKA bullshit)

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