Tuesday, July 29, 2008

July 29, 2008; Quick Update

Wave 3 of (3) may already be underway with the five wave decline completed yesterday. I closed my double long Dow ETF (DDM) for a small profit. I now count 3 waves up in the Dow and S&P and both are in the the area of the prior 4th wave. This sets us up to get heavily short right now (Dow at 11,305).

1) Dow target area is 11,305 or where wave A would equal C at 11,392. Stop loss would be if the Dow rallies above 11,697.

2) S&P target area is 1252 or where wave A would equal C at 1263. Stop loss would be if the S&P rallies above 1292.

3) If wave 3 of (3) is underway, then the upcoming selloff will be the biggest, fiercest and fastest in the past few years. I want to catch it, so I am fully short the Dow, S&P and Nasdaq 100 (DXD, SDS, QID). And my risk is clearly defined as stated above.

The big selloff, which may result in thousands of Dow points being erased, may begin soon!

No comments: