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I Scream You Scream We Scream For…

I Scream You Scream We Scream For…

by The MoleJune 25, 2009

… a Wave Count! 🙂

Okay, I’ve been busting my butt to produce an alternative scenario here – this is what I’ve come up with.

Orange: Theoretically we could be painting a Minute {ii} of Minor 3 of either (X) or Intermediate (1) of {3}.

Black: We completed an A-B-C and thus (X) and are now pushing into Intermediate (Z).

The problem I have with Orange is the current breadth on the SPX – which is exactly 14:1 advancing. On the NDX it’s 18:1 advancing issues. Not something I would expect in a Minute {ii} of an extending third wave to the downside.

So, although the wave count would theoretically support a large drop here it would have to come fairly soon and it would have to invert the current breadth.

On the pro-bearish side – the Zero is fairly flat right now, which doesn’t support the long side that much. But we’ve seen that happen before, right?

I know you guys are sick of hearing this but I would be very cautious here about taking the short side. Anyway, I have highlighted where either scenario would be confirmed (and the inverse invalidated).

3:11pm EDT: Well, we lost Katzo last week but in return got a new member called TheBrain – who seems to have his act together and even knows how to count waves – I call that a great NFL draft trade. Let’s make him feel right at home:

This shit never gets old….

BTW, I did warn everyone about going short an hour ago – ahem – just for the record – not to rub it in or anything – well, maybe a little 😉

Truth is this thing could swing either way at the close – I have zero confidence. Cash is a position ladies and leeches! I know – that expression got old back in 1985…

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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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