Picture Getting Clearer

I think Berk is posting tonight but I wanted to throw this in the mix for my legions of evildoers as you must be aching for a sign to storm the beaches. Fortunately, today brought much needed clarification and here’s the chart that says it all:

$DJI on cross road.

Again, this is still a bit preliminary but at this point we know a few things. First up, this rally is running out of steam and the 300 point drop today must have been disappointing for the bulls. If you look at the chart above you’ll see that there are two possibilities at this stage:

1. We just painted and (a),(b),(c) of {4} of 4 and just embarked on {5} to the upside.
2. We just traced out four minor degree waves of a motive {1} of 5, which would mean downside from here.

Now, the news is all over that Intel announcement and it’s possible that we get a pop up tomorrow and breach the ‘green slime zone’ I have also marked on the chart. If we push through that the averages should be on their way to ‘New Short Lasting High City’, which would be a an awesome opportunity to load up on more shorts and maybe some puts, if we can get Mr. Vix to give up his vacation in the Swiss alps

I really hope it’ll be door # 1, as I don’t like to load up on puts – you all know why at this point. Can’t we bears get a decent bull rally lasting more than two days for a change? 😉

Nevertheless, I will start to hunt for overbought victims we can mount, saddle and ride all the way into the abyss Ride of the Valkyrie style:

Yes, the bulls will feel like someone just dropped the big one. Mmmmh, I love the smell of crushed bulls in the morning.

Stay tuned – I will start posting some of my first victims starting tonight, and there will be more throughout the coming days.

Cheers!

UPDATE: I just looked at the DJI futures over at CME and they’re down. Asian exchanges also don’t seem to be impressed by Intel’s 12% third quarter earnings and are heading lower. So, it’s a good chance we will continue the sell off. I still believe it’ll be whippy throughout the day, so use the rips to load up on positions, as this might be our last chance.