Time For A Little Bounce

I’m attending a private function tonight, so I don’t have much time for a post. Can’t leave my stainless steel rats without a road map for tomorrow though. But before we get to the chart, here is a crash course on how to become a contrarian:

That’s it – now you’re ready for tomorrow’s session.

Soylent Orange gained a lot of credibility today but we are not out of the woods yet. I’m currently counting only seven waves down and we need nine for a complete motive. So I am condoning further downside, despite the short term oversold conditions right now.

It’s also possible that this is it and we are pushing into Soylent Green now – a seven wave count would be a corrective move and part of an {x} down. Then again – sometimes you simply can’t rely on small degree counts and based on the weak performance of equities today, despite all the odds and market conditions favoring a rise, I am giving a push into 1100 followed by a drop the highest probability.

Bottom Line: Don’t chase this move down as it could end very soon. Soylent Green is still absolutely valid – so don’t get too complacent. A breach of 1053 would most likely disqualify Soylent Green – but until then it stays in the race. If you are banking on Soylent Green then today was your chance to grab those debit spreads I advertised yesterday – if we don’t gap up tomorrow morning use it to get positioned. The immediate drop down (i.e. Son Of Soylent Orange) is not too high on my list as we seemed to be in a bottoming pattern today. If you are banking on Soylent Orange then you could still do a quick spread but I would use the July quarterlies – pro spread traders please feel free to chime in on the subject. Or you can do what I’m doing – nothing – just sit and wait 😉

Cheers,

Mole