After hitting a two-day peak today in the penultimate hour of trading, the S&P pulled back, tried to rally, and then just collapsed: from 804 to 794 in 15 minutes. Such severe plunges tend to happen within C waves (recall that we had been in a C wave from May 08 until this past March). On the plus side, C waves are relatively short in duration; if one began today, it could be over and done with as early as tomorrow (but the S&P may fall all the way to the 730s in that time!) The other positive is that the C wave paves the way for the next impulse wave up. (Note: the above graphic is the 15-minute chart of the June 2009 S&P futures, which is a fair proxy for the index itself. X-axis is Pacific time).| Current Holdings | ||||||
|---|---|---|---|---|---|---|
| Ticker | Basis | Closing Price |
Perf. | Sell-Stop | Additional Exit Guideline | Chart |
| MELI | 17.39 | 18.55 | +6.7% | 16.86 | Consider selling below 18 | Chart |
| CLS | 3.24 | 3.56 | +9.9% | 3.36 | N/A | Chart |
| EGO | 9.01 | 9.00 | -0.1% | 8.19 | N/A | Chart |
| VIVO | 18.22 | 18.12 | -0.5% | 17.32 | N/A | Chart |
If we are getting a C wave down, let's see if we can't make a little money along the way. If DUG or DXD get elected, I will keep them in the portfolio for Thursday, but it's not a bad idea to close them out by the end of the day.
| Ticker | Entry | Exit A | Exit C | Chart |
|---|---|---|---|---|
| DUG (Ultrashort Oil & Gas) | 26.61 | 24.99 | N/A | Chart |
| DXD (Ultrashort Dow 30) | 65.73 | 60.99 | N/A | Chart |
| CEPH (Cephalon) | 69.11 | 67.24 | N/A | Chart |
Please refer to "How To Trade The Ideas" (right-hand side) to read this table.
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