not that you can particularly see it, but it seems like all the points of interest converge in the next day or so....
So It's a Pennant, in a bear trend....... Bearish Bias. That is a very clear Elliot wave... sure it could go on a little further.
For those new to the blog, this is exactly my sell setup. Trend line from the bottom of wave 2, to the bottom of wave 4. Then draw the outside of the trend channel for wave 5(Blue line), initiate first sell position. On a following lower high Draw a trend line from the bottom of wave 4 to that first low(pink line). Initiate second position on breaking that trend line. Now.... Don't get aggressive till the wave 2 through wave 4, trend channel(red line).
But let me tell you what I'm really looking for, Today we tested the 50dma, then we tested that upper trend line. I bet if we watch we will see my rule of 3's, applied to the 50dma. and I bet we go through.
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
Wednesday, December 17, 2008
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