Tuesday Road Map
Tuesday Road Map
So, we’ve sold off quite a bit in the past few weeks. Based on the comments I know many of you got tragically whipsawed out of perfectly good short positions and have been waiting for a bounce to load up again. Well, I have good and bad news for you – here’s tomorrow’s road map and an extra goodie.
Hey, whatever you do – don’t ask for directions!
We have descended to the point where we probably paint a little bounce – besides the current wave form counts nicely as a picturesque motive wave (you can print that one, cut it out, and use it as a wall paper pattern). Anyway, it’s not guaranteed and the train may just steam downward, but if we do I see us reverse around the 1077 mark. After that we follow the fib marks until 1095. Now if we breach that then something else is going on and we may just have to put up with Soylent Orange.
A lot of folks are talking about deeply oversold conditions. Well, yes – we did close below the 20% mark on my kick ass weekly stochastic chart (which is really kick ass I may want to emphasize – if you play this one on a weekly basis alone you’re banking royal coin). Anyway, closing below the 20% mark but that’s not what we are looking for. Yes, your superior stainless rodent intellect has not let you down – we are indeed looking for a breach above the 20% mark. Which is probably when we’ll get something like Intermediate (2) of Primary {3} – or we get a little fake out breach, just like at the beginning of Primary {1} back in November 2007 and January 2008, followed by more downside.
If we get a breach below 1040.78 then I would most likely dismiss any breaches above the 20% mark on my weekly SPX chart as a fake out. Why? Because at that time the wave form would be incomplete and I would expect a third wave to ensue in pretty short order. Never forget – on all time frames stochastics can remain overbought for quite a while. However, I have to concede that this rarely happens on weekly stochastics on the buying end, Reason being is that bear markets move rather fast on the downside and it is those annoying bear market corrections that linger on the upside (i.e. the 80%+ mark) – which is why you saw the stochastics remain embedded repeatedly during 2009.
Alright, you have been briefed – go out there, play it safe, but don’t take any prisoners 😉
Cheers,
Mole