....as we approach 78.6% on the falling wedge .... ... is this smaller wedge continuation or a reversal ?
Until proven otherwise, my assumption between now and FOMC is that we're in a narrow 5-point trading range from about 18 to 23, and that scalping is the modus operandi until the announcement. Long just after the open at 1518.50. Out half at 1519.75 for +1.75. Sell order for other half at 1521.75 with stop moved to BE. EDIT: Sell order moved to 1520.50. EDIT: Touched but not filled.
Stopped out at BE on remaining half. Now flat. EDIT: Downside bias since 8am. I'll probably focus on short scalps on price pops UFN.
while we wait... I will expand a bit on that housing stock post. Here is a chart of KBH... it hit massive support.. 3 overlapping 5 wave moves.. the strongest pattern in this business when everything lines up right IMO. It is at a deciscion point right now. It will most likely retest the lows at the first resistance shown however these patterns produce explosions so targets are $45 and 70$ from this zone... almost triple the price.
I see it Apex. Looks great. FYI, subprime resets are set to peak in mid 2008. That bullish chart is building a base inline with the 2008 subprime reset peak.
Have you looked at Toll Brothers? the daily Chart looks great as well. The company has always been a solid performer prior to the subprime mess. KBH and Toll you can't get much better. They have more money than God and they have vast propertie holdings just ready to be built on.
On an offnote, I grew up watching my family members playing poker at the holiday gatherings. The one thing that stuck with me was always hearing one of them say "possible flush, possible straight, possible wild card, etc." You gotta play your possibles. They were always thinking ahead. If-then-else.