Even though some may think this rally is a little overdone. Not at all. The slide in the dollar and the EUR/USD rally are putting a solid support underneath it. Welcome to another Taylor five count rally sequence. Parabolic blow-off on the QE3 announcement coming up next week!!! Price target 1405+
La da de da de da... Cmon 1405+... Once we get just a bit closer to the yearly highs lots of good short setups are going to appear. Woohooo!!! Lets see where we reach by Tuesday. Even if the sequence gets a little noisy the market still pushes towards it's proper price targets. Not much reason to be all too bearish until Jackson Hole. Still a chance of QE3 being announced! (I don't actually think it will be, but... The rumors of it pretty much have the same effect on the market so it doesn't matter.)
I couldnt help noticing how you changed your sequence of 5 to 3 in another post. Previous to the 3 sequence, no mention of it, once it was obvious it had gone to 3, oh yeah , sequence of 3. What a joke man, be more humble, its only human.
It actually doesn't matter. Read george taylors book. It's a three with a variation of 4-5. It just happens that only the 3 is high odds, and the 5 has occurred a lot recently. Eg... If you buy the market bottom or short the exact top. Holding for 3 days into the next trade cycle is high odds. The 4-5 variation you start pushing it. If this is a three that means the top is Tuesday which I am looking to short at 1400+. Monday/First half session price action on Tuesday will tell you exactly where were going to top out at next week.
Btw, heres the exact quote out of George Taylors book. "It is a fact and the records show it. For many years back that the market has a definite 1-2-3 rhythm. Varied at times with an extra beat of 4 and a times 5." The fact the market moves in three day sequences is a statistical proven Fact. The 4-5 variation occurs more often than not with trend direction. The Variational sequences are intermittently just thrown in to weed out weak hands.
Another quote out of george taylors book... "The beat of the market is subject to these occasional variations occur with surprising regularity. So it seems that the same methods of manipulation used in the past are still used today." The market is rising at a rate of around 5 points per ten days with a expected range of 30-50 points. Odds are still pretty good on shorting the top of the market range as it pushes into new highs for some three day dips. Pushing for the 4-5 variation is pushing your luck. Good luck next week all! If you get a short this week toward midweek at the top of the range... If you don't take a proper exit on a pullback cycle the market is moving against you at 5 points/10 days... So not much risk in holding a short position established at a top over 1400.
Every single short setup recently has worked fine. No need to worry about exact timing. In order to get a good short next week we need to rally for two or more days more without an engulfing reversal according to the rules of the market. This could potentially be a rare 5 with a intermission... Eg...3-pause-2... If so I am going to be annoyed as I won't get my Tuesday onward short setup and will miss the play.
You sound like a weak hand. The market blows out weak hands. Just like these weak hands shorting the trendline need to be blown out... You have to choose a point. Short either a market top. Or buy a market bottom. Then hold position like a boss into the meat of the trade cycle. Equities always retrace unless they are trending.