Friday, November 06, 2009

78.6% retrace Wave 2

DOW chart from ALPHAHORN

Shows WE are right at 78.6% resistance on the dow
and the SPX at 1071 which is what I posted several times

For those who want to know

I bot 1500 TZA at mkt guru
I bot TZA at my LION account
I bot DJVWU

In Other words, the MKT has achieved its GOALS on the UPSIDE

and will NOW work its way into a SLIDE later today and especially Monday

Jay
at

17 comments:

  1. Anonymous1:21 PM

    You can post all the charts you want, but the bottom line is we're flagging still and it can go either way. It looks bullish on the snp 15 min. If it breaks up, we'll go much higher into the close.

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  2. Anonymous1:23 PM

    Anyone looking at oil? It looks real cheap at these levels and is ripe for a bounce.


    x

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  3. Anonymous1:31 PM

    Pretty tricky market. They're trying to make this as bearish looking as possible while we grind higher every day. Next thing you know we'll be at Dow 11K and wonder how we got there lol

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  4. Anonymous1:38 PM

    Looks like we go way higher now...parabolic time

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  5. Anonymous2:06 PM

    Is it a holiday today? This action feels like low volume holiday action with not enough participation. It'll be tough to crack this egg if it is.

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  6. stockdoc2:27 PM

    nice job Jay...been following your blog for a while and enjoy your model. We are in agreement. Heavily short SDS, TZA, TWM, BGZ...doc

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  7. Anonymous2:51 PM

    I'm out of all short positions. This market's is not going down. We are just consolidating. Markets don't take all day to drop so something's up here. I'll look to short monday or after the holiday next week. Have a good weekend!

    steve

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  8. Anonymous3:21 PM

    Looks like 1088 still on the table. They're postponing the selloff til late Monday or Tuesday probably. We close flat today big players are done for the week. Sorry no slide today jay.


    ty

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  9. Jay Strauss3:29 PM

    market is GOING no where

    ACTIVY index has BEEN FLAT all day at 66
    thats only one tick from its lowest possible level at 33

    Power index drops from 500 to 350 at close and lower on Monday

    propens index HAD a BIG RUN UP to yesterday at 3020, ending the day Today at 3004

    Jay

    90 bars hits at close and or open monday- If monday, expect a huge open DOWNDRAFT.

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  10. Anonymous3:45 PM

    After all that, the market decides to go up lol Good luck bears

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  11. Anonymous3:47 PM

    Today's close: 1066.63 SPX

    Atilla

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  12. Anonymous3:54 PM

    Did the market forget to show up today? Total waste of my day watching this crap. Glad I'm long. I think we have a base to launch off of now. If my memory serves me, I've never seen the market drop straight from a flat consolidation day like this.

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  13. rrman5:55 PM

    Heres Kemal's take pretty interesting


    Kemal_1
    The charts are difficult to read right now, if one tries to dissect EW patterns. The EUR/USD chart appears to form a bull flag pointing to 1.51 as the target:

    http://tinyurl.com/yjn3k6c

    The SPX is in a VERY tricky situation. I am watching two potential set ups.

    1. The inverted H&S formation could form much smaller left and right shoulders than what one would think on first glance.

    2. A so called leading diagonal (LD) could be forming in the wave (a) position. Right now, the fourth wave would be forming. I give this formation quite some credibility. The final fifth wave should be an acceleration to the 1074 - 1076 area. It could happen end of day OR first thing Monday morning. IF such an acceleration (or gap up on Monday morning) happens, GET OUT as fast as you can.
    The reason is that an LD is followed by a very sharp retracement, likely down to 1050. This retracement could last 2 - 3 days.

    I don't expect any drop today. Even after the sharp retracement, if it happens, new highs are certain. So the major market direction is up.

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  14. Unknown8:46 PM

    This comment has been removed by the author.

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  15. Unknown8:48 PM

    Sorry for the noobie question but

    how do you guys know the dow wave 2 is gonna retrace to 78.6%?

    why not 61.8% with reference to this

    http://3.bp.blogspot.com/_tOEUlOjbtCU/SvRYgquamSI/AAAAAAAAAg4/SSGhXCPIRTo/s1600-h/Capture.JPG

    thanks for your help in advance!

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  16. Jay Strauss6:37 PM

    WElcome NEW members

    Thanks for signing in

    Jay

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  17. Anonymous11:53 PM

    Jay, why would you buy tza last Friday if your previous graph shows a target of 1090? Why not just wait to scale short above 1080? That's my plan anyways. I might start above 1075 tomorrow. Futures are green, euro broke higher, and asia's up. Seems like shorting the close tomorrow or Tuesday would be the best strategy.

    ptg

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