Melt Up Monday Rub Down

After the overnight ramp up a drop through WVAP was promptly exploited as yet another dip buying opportunity – all averages remain their highly flatulent disposition.

I do see a monster divergence but would warn everyone to not get their hopes up. A drop into the close might have been the start of something bearish but the pattern indicates that more upside may be ahead.

I think I showed you this chart before – we are right at that reversal line again. However, at this stage there is the possibility for a blow off top according to my wave count (previous thread), so be cautious.

Program Trading Update:

resident.evil/ES: +0.75
geronimo/ES: +2.5

I do have a question for all subs and ex-subs: After laboring all weekend I did send out an email to everyone on my list about the progress that was made to turn the Zero into a trading signal further down the line. If you haven’t seen the post – I successfully implemented the Zero Lite in NinjaTrader 7 this weekend. Unfortunately I received only a handful of responses, and I wonder if the majority really cares. So, before I put a lot of time and energy into this, I would encourage you to make yourself heard.



Snorefest Wednesday Rub Down

I have to run to an appointment, so only the chart for you rats as a snapshot of today’s tape:

Program Trading Update:

geronimo/ES: +0.5
resident.evil/ES: -2.5



While We Wait

With a bit more time to kill until thy Holy Oracle will announce its verdict on the state of financial affairs I’ve got a bread & butter chart for you EWT addicts:

I have been insisting we would bust higher for the past few days, so if you got caught in this bear squeeze, you only have yourself to blame. Now, seems to me that the party may not be done just yet and I have my sights set on 1066, which is when various things fall in place:

  • Minuette (c) of Minute {ii} will measure almost exactly 165% of (a) of {ii}, which is a maximum guideline in Elliott Wave Theory (EWT).
  • We will have reached almost exactly a 50% retracement of Minute {i}.
  • We will be right at the previous fourth wave [ i.e. (iv) of {i} ].

That’s pretty much it – just the facts, ma’m – just the facts. Now you know where I will be tempted to back up the truck and load up on more puts (again). But remember – I am almost suicidal in my bearish inclinations – so, don’t do what I do. Listen to Cramer, or to Ben Bernanke – even that Nigerian taxi driver I had a chat with a few days ago seems to know more about the market than I do. I mean, after a 60% run up in eight months – what’s another 20% – 30%? Right – almost guaranteed – don’t worry – be happy – Helicopter Ben got your back.

The poor buck has been utterly smashed to smithereens in the past two days. Boy, if you look hard you can see an imprint of Bernanke’s thumb on the chart. I could count this as an expanded flat but frankly – I’m scratching my head a little here. That’s quite a sell off.

[some content removed upon 3rd party request]

Berk here:

A quicky chart of how I am determining my target for re-entry on X.

X re-entry technique

X re-entry technique

Convenient Fib retrace level, mixed with Fib extension level…

Same on FWLT…

30 or 30.5 was a little early, but you'd be up right now...

30 or 30.5 was a little early, but you'd be up right now...

2:22pm EDT: Let’s hope they push it to 1066 – come to daddy!!

I’m waiting!!!

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