Scaling Back Into Short Positions

11:18am EDT: We’ve about reached the point where I would like this correction to be – going short right here:

If we push towards 902 I’ll bulk up a bit more – although I would get a bit more cautious as this one would start to look a bit disproportional. The wave count now seems to confirm my early theory of a Minuette degree expanded flat (see psalm 47:1-35 in our bible).

I updated the channel to how I actually meant to draw it – now it seems to fit almost perfectly. Of course if we push much higher I’m SOL 🙂

11:34am EDT: Okay, this is something I need to show you rats:

According to EWT guidelines wave C of a flat is usually between 100 and 165 percent as long as wave A (page 89 in our bible). Now, I just measured wave A against what right now appears to be wave C and it’s exactly 165 percent – wow. Of course in this thin tape we could easily push a bit higher and I wouldn’t discount the larger degree count because of that – but it’s still interesting how at least in the short term how we turned right at that point. Coincidence? I think not!

I actually remember the state of the Zero when we reached the top of that little A wave – remember participation had completely died down on the Lite and it looked like we might bust higher? Then suddenly selling kicked in and we dropped to yesterday’s lows. This is something I’ve made a mental note of actually and I am going to start looking at wave patterns in correlation with Zero readings. As you know the Zero is mostly a market oscillator – it is only predictive in its ability to recognize dissonance between prices and participation/momentum. These characteristics I feel might give us important clues as to the potentialities of particular short term counts. Again, this is highly speculative at best right now but I will pursue this aspect of my work in the weeks and months to come.

12:00pm EDT: Courtesy of 2Sweeties – he insisted that I post it 🙂

BTW, Zeitgeist is one of those words to which there is no equal/precise translation in English. It roughly means ‘the contemporary spirit’ – but that really doesn’t describe it properly. It’s a beautiful word – of course since WWII German has been ridiculed and marginalized over here in the U.S. – which is really sad as it’s a very rich and beautiful language.

12:11pm EDT: We just painted some mini H&S in the futures and I think we’ll pop higher here – sorry rats. Again, I’ll add to my positions at 897 and 902.

12:29pm EDT: Fortunately that H&S failed and we now find ourselves at VWAP in the ES (889) and the NQ (1366) – expect some turbulence here.