Three Ways!

And not the kinky type you have in mind, you dirty rat! 😉

I’ll be lighting fast here as I’ve got some coding to do, but I didn’t want to let you guys hanging after today’s whipsaw.

This is the gist of it: We’ve got 2 1/2 scenarios in play. What’s the 1/2 scenario? The green one – although I think we drop tomorrow the odds now indicate that we won’t make it past 770ish. So, don’t be tempted to unhedge yourself if you are still holding those miracle puts we got two weeks ago. You do, don’t you?

Elliott Wave Role Call:

Green Scenario: Intermediate (5) down – we need to breach 740 for this one to remain valid [the prior intermediate (3) wave low], anything less than that will not convince me. If that happens against all rhyme and reason I will be happy to drop my hedge once we’re clear.

Orange Scenario: Intermediate (4) triangle – E wave up – my all time favorite today. We first drop, then stall and rally back up just to confuse the last bear out there. We fall from our drop zone at around 920.

Blue Scenario: Intermediate (4) flat – C wave up – still a contender. If we rally tomorrow this would become our favorite theme going forward. The odds to reach 1020-1040 would increase dramatically. Actually, I would be ecstatic if this happens – reloading at such alpine heights would be like taking candy from a baby and worth all the prior hassle. No pain, no gain – right?

Personal message to Keirsten – what really blows me away is that the orange scenario falls right at around February 9th. Could it be? 😉

So, tomorrow will be make or break day for at least one of these scenarios. If we go down I do not expect much more ‘complicated tape’ until at least the end of 770. Remember my comment yesterday about triangles usually only showing one complex correction. Well, let’s see if the market decided to behave for a change…

That’s it, steel rats – I have some coding to do – this is turning into another 16 hour day. Nothing else to say except that today’s tape was horridly spastic and I was happy to be hedged. There is bliss in being neutral like Switzerland (preferably with an access key to one of their numbered accounts).

Yodellli-yoooooeeeehhhh!!!