This is Michael Davey from Centrifugal Deforest. Regrettably (for you dear reader), the rumors circulating are indeed true. An apparently desperate Molehost had invited me aboard his Evil Spectre, in order to fill-or-kill a little empty space and comment on the event horizon. My purpose is simple – I’ll be holding rat hands while bobbing flotsam tides and jetsam streams, trading together in this ever amazing, shall we say special, marketplace.
In your face, frothing tough love perhaps (and you deserve it!), but my hand shakes something awful, while my palms are humid, flippant and mercurial. You’re on your own Einstein. Kudos to the human race.
Everyone at the evil lair is wearing party hats today as we banked some major coin. This evil megalomaniac closed the day 40% up – which might be a personal record. Of course much of that ill gotten gain will soon have to be relinquised and I tell you why:
The Zero shows a solid down day again on all fronts. What’s also important to note is the signal strength of today’s drop versus the signal during yesterday’s pop higher. A reasonable point of view would be that the trend has now changed to the downside – but – I don’t want to be hasty here – let’s see how far Monday’s snap back will get us.
We have not only breached that important low I pointed out this morning, we also dropped to a point where I feel more than comfortable (calling George Carlin! :-)) to cash out my November chips:
I simply measured the length of what I consider a textbook third wave (okay, not necessarily on the Dow, but sue me) and projected its length on the current drop. Voila – we’re right at the 61.8% fib line and this is where I say goodbye. And yes, I am holding my long term puts over the weekend – those suckers are either going to expire worthless or I’ll invite you guys to my private island party next year 😉
2:03pm EDT: innatedc alerts us that [...]
Morning my intrepid stainless steel rats. Forgive me late appearance but I simply couldn’t roll out of bed this morning – had to catch up with some much needed sleep and my bed was way too cozy and warm. You can blame that damn heating blanket Mrs. Evil bought me a while ago
Okay, so this is what has to happen now – per the chart above we now need to see yesterday’s lows (SPX 1042.19) to be taken out with conviction. And that’s pretty much it, folks – really nothing to be said about the wave count.
Nice move also on the Dollar front – and similarly we need to take out Wednesday’s highs (78.58) and that [...]