The entire whipsaw move today was contained between last Wednesday's low (Wave 4 bottom) and Friday's high (putative Wave 5 peak). Whichever level is breached first will probably lead the way for the next 1-4 weeks. While both paths are valid, I'm suspicious that today's late surge might be a B wave. B waves exist to fool: to fool bulls into buying the dip, and bears out of their shorts. The price action itself was a swift and sudden campaign that was unable to breach prior highs, and that further began to deteriorate rapidly. In other words, a campaign high on shock and awe, low on substance. The other observation worth noting is that the turn occurred near the prior Wave 4 low, which is a rough target for the corresponding corrective wave. The next rough target would therefore be the S&P 880 level, which was the site of the Wave 4 low from May 22. Let's see which way the market follows through tomorrow before arriving at a conclusion.
Today we sold JACK for a loss, ASIA for breakeven and HW for a quick profit. No new purchases.| Current Holdings | ||||||
|---|---|---|---|---|---|---|
| Ticker | Basis | Closing Price |
Perf. | Sell-Stop | Add'l Exit Guideline | Chart |
| SSO | 25.06 | 27.26 | +8.8% | 26.43 | N/A | Chart |
| UYG | 4.11 | 4.26 | +3.6% | 4.11 | N/A | Chart |
| CPSL | 2.26 | 2.61 | +15.5% | 2.39 | N/A | Chart |
| UWM | 20.86 | 20.50 | -1.7% | 19.85 | N/A | Chart |
| SPAR | 10.48 | 10.64 | +1.5% | 9.90 | N/A | Chart |
Again, 50/50 longs and shorts for tomorrow.
| Ticker | Entry | Exit A | Exit C | Chart |
|---|---|---|---|---|
| FITB (First Third Bancorp) | 7.42 | 6.90 | N/A | Chart |
| TIE (Titanium Metals) | 11.03 | 10.31 | N/A | Chart |
| DXD (Ultrashort Dow 30) | 46.93 | 44.45 | 44.31 | Chart |
| SRS (Ultrashort Real Estate) | 18.51 | 17.42 | 16.77 | Chart |
Please refer to "How To Trade The Ideas" (right-hand side) to read this table.
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