Disclaimer

I'm not a financial advisor nor a broker/dealer. I neither provide financial advice, nor make investment recommendations. Nothing you read on this website constitutes a solicitation, recommendation, or promotion of any particular security, transaction, or investment.
I may at times discuss trades or trade setups, but this is meant to be purely a discussion point for entertainment and educational purposes only.

Thursday, October 27, 2011

October 27th Update

SPY

My short discussed on 10/19 didn't work out, and I was stopped out.  This rally has been very sharp and intense.  I had expected a better B-wave pullback.  That's fine, as that's what protective stops are for.
Below are daily and 4H views of the SPY.


We appear to be completing the fifth wave of minuette degree (c).  I heard a wise phrase from a trader once who said, "let the market commit to you before you commit to the market".   I will be waiting for a breach of the subminuette degree wave iv of (c), or around 119 on the SPY.


USO

Crude appears on the verge of completing a possible a-b-c retracement, or bear market rally.  I will err on the side of safety here and wait for an upside pop over the subminuette wave iii high which appears to be in progress, followed by a breach of the subminuette degree wave iv low.


It would be prudent to consider the possibility that my proposed (c) wave could possibly be a iii of (a), making this whole rally a very strong (a) wave.  I think the chances of that are remote, however.
Posted by Waverunner (FractalTrader) at 10:56 AM

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Notation


Wave DegreeMotiveCorrective
Grand Supercycle((I)) ((II)) ((III)) ((IV)) ((V))((a)) ((b)) ((c))
Supercycle(I) (II) (III) (IV) (V)(a) (b) (c)
CycleI II III IV Va b c
Primary((1)) ((2)) ((3)) ((4)) ((5))((A)) ((B)) ((C))
Intermediate(1) (2) (3) (4) (5)(A) (B) (C)
Minor1 2 3 4 5A B C
Minute((i)) ((ii)) ((iii)) ((iv)) ((v))((a)) ((b)) ((c))
Minuette(i) (ii) (iii) (iv) (v)(a) (b) (c)
Subminuettei ii iii iv va b c
Micro((1)) ((2)) ((3)) ((4)) ((5))((A)) ((B)) ((C))