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1088 A.D.

1088 A.D.

by The MoleAugust 11, 2010

I have mentioned SPX 1088 in the past few weeks – so, what’s the big deal about that number? Well, for the bears it most likely marks the end of the Dark Ages and the beginning of the Big Reckoning which (after a lot of fun) will lead to a new Renaissance based on real values and stringent limits on over leveraging. With some luck the Big Reckoning ends with a big bang along the lines of banksters being tarred, feathered, and carried out of town on a rail. Or something more entertaining – use your imagination.

What do you think? Am I properly dressed for the occasion?

The drop today has lowered the odds for that last push to 1060 I was expecting. Can’t say that I’m sorry about that as you all can imagine. But the time cycle suggesting a roll over around the 15th may still spell true if we get a milder version of the fake out DarthTrader has been suggesting. Here’s the grand idea:

Soylent Blue has us straight down from here. And you know what that means – the effervescent trampoline (sorry, I spelled it the German way on the chart) at 1088 needs to be taken out for that to happen. And the force is strong down here as there is a cluster going back several months.

Soylent Green has us bounce here for another fake out to the upside. The bulls will see that as the dip preceding a strong up move, so it should be fast and scary for the bears. However, if it plays out I expect the 1125-1130 to serve as strong resistance. Should that be breached then the bears are in a world of hurt and I would have to scrap the medium term wave count for something else.

However, the odds are now shifting back to the bears – the time cycle has us roll over mid August and there’s nothing but downside looming ahead for a while. The bulls missed a great opportunity to stick it to the grizzlies one last time – and in the context of today’s long candle down it looks like the ending diagonal is complete and we that we may be at the onset of Minor 3 of Intermediate (1) of Primary {3}.

Old bucky is doing its part and it seems that after registering 6% Dollar bulls it was finally ready for a snap back. Wave C turned out to be a 1.618 multiple of wave A – which I have to admit was about the maximum I allowed before considering a more ugly future for the Dollar. With some luck we’ll get a nice short covering rally here which should also serve as head wind for equities.

And yes, we did have another GCT fractal on the NYSE A/D ratio. Reason I didn’t bring this up a day or two ago was that I expected another up spike per the prior fractals. Which we got of course but *@&^! Multicharts got stuck somehow as it’s running against the same DTN feed as my NinjaTrader setup. It does that sometime – so sorry about that – need to reload it manually more often.

But it’s pretty exciting to see that we seem to have recognized a repeating pattern accompanying medium term topping formations. That should prove to be extremely profitable moving forward.



About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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