The market is flip-flopping around waiting for the Fed to "save the day" with some new banking package that will dedicate more hard earned tax dollars to allowing rich bankers to continue being ruthless with our money. The 5 wave rally from yesterday is concerning, along with the fact that there has been absolutely no follow-through to Friday's big sell off after almost 2 1/2 days of trading. Again, not the characteristics of what I'd expect from a wave 3 at various degrees. With that 5 wave move in place, I'd love to see a sharp rally after the Fed statement today around 2pm EST. This would be the perfect rally to fade (short) since almost every government intervention plan that has come out in the past couple years that led to a rally has been quickly reversed. And since we have a small 3 wave decline today, a sharp rally after the Fed statement can make the rally from Monday's low a 3 wave zig-zag affair. So I'm hoping for a sharp rally to where I can add to my short positions.
YESTERDAY'S CHART
TODAY'S CHART
The euro has fallen quite a bit since showing signs of a top. This happened last time I tried calling a major top and it proved to only have been a minor top. So we'll see if we get follow-through to the downside which will help us determine at what degree this top actually is. Right now there are only 3 waves down from the high, but that can easily morph into a 5 wave drop. Doing so would strongly suggest that a major top was in and that the euro was probably on its way to new lows on the year.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.
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