Hell Week

UPDATE 2:00pm EDT: Yep, I wasn’t kidding when I promised you the whipsaw of hell – and it even started earlier than I thought. Are you having fun yet? Didn’t think so 🙂

Let it be heard that this shall be known as ‘hell week’ – a fitting name indeed!

During expiration weeks (and especially this one) I always expect head fakes and this time around is most likely not an exception. IF we continue to drop from here we can comfortably count this as an a-b-c correction. However, we really need to drop straight down from here – past the ‘good start’ line and then finish below the lower yellow square. Similarly, the bulls will want to see the 161.8% fib taken to the woodshed, which most likely would be followed by a breach of yesterday’s peak.

I had sold some ES contracts earlier but then reverted into cash – I just reloaded around 765 and again will head for the hills (i.e. cash) if we take out today’s highs. So far so good 🙂

BTW, that drill instructor is me on a good day…

UPDATE 2:45pm EDT: Boy, that is some fugly tape today – not much else to say frankly.

Gold is adding to the fun by diddling around with our diagonal support line. But we are converging and it’ll have to shit or get off the pot. Pardon my french – but it’s driving everyone crazy – bears or bulls alike. Officially we are still in a large scale uptrend until this line is broken – you know the drill. I’m still holding my GLD puts – if you must know.

UPDATE 3:50pm EDT: Okay, ladies and leeches – this is going to be an extremely interesting close. If we breach yesterday’s high then we are painting nine waves to the upside – which is a strong bullish signal and would point towards the green scenario. We might just get close and then turn – but I still don’t like what I see. However, once I get a bullish confirmation I guess I will like what I see 🙂

BTW, does anyone know what I mean by ‘obey’? It seems that one is getting lost while you rats are scratching your rectums all day.

UPDATE CLOSING BELL: We have nine waves – the only way for this to turn into a corrective is for us to tack on two more – which would get us to 11. Frankly, it is still a plausible scenario but green is starting to look very good right now.