Thursday Wrap Up

Zero held up very well despite all the whipsaw:

I have to point out that there was a long VTA at the 5th candle. But due to all the whipsaw we’ve been seeing in the past few days I decided to switch the Zero into restrictive mode, which means that it does not give you a trade alert on a contracting signal line. That is a filter that can work against you in trending markets but here’s my reasoning:

• We’ve seen a lot of overnight and intra-day spikes and contortions.
• Although we are most likely in wave 3 of (A), according to the latest count, what we are dealing with is a proregressive wave (page 56:2 of our bible), so I do expect this to be ‘difficult’ terrain.
• According to my preliminary targets for (A) of {2} we have made a lot of progress in price in a very short amount of time.
• Finally, Tim Knight – friend of the blog – has shared some very excellent TA on what’s looming ahead, which is one truck load full of resistance zones.

Thus, I decided to activate this filter today – my only regret is that I didn’t switch it on earlier as it could have avoided some of the recent false positives on the Primary Zero.

The Zero Lite licked it again IMNSHO – in particular I liked that divergence that preceded a nice drop into 818. From there we pointed straight up and the Primary was in sync, leaving little doubt that we would finish in the plus.

I might chime in later today but frankly, I’m a bit worn out – need a day off. So, if I do it’ll be brief and painless.

Cheers,

Mole