It is very true! I like this one; "Walk softly, but carry a big stick"...what's it mean in relationship to the markets? Take your time and observe softly, but when it's time hit it hard!
For comparison here is NQ it's a bit different than ES/SPX because the price low was actually the orthodox low too (Oct 13th). While the ES/SPX and YM/DOW were goofing off building a base (drove me nuts!), the NQ/NAZ was already impulsing. I tried to tell you guys, but everyone was so concerned with ES breaking down, (it had me concerned too), it was kind of ignored. From the Oct 13 low, we have five waves up labeled wave 1. Btw, wave 1 topped at the same time for all three indices. After a steep wave 2 correction. We again have the same subdivided wave 3, this is why all the indices are moving strongly, they're all aligned. The same criteria applies to the NQ as the previous ES post. Here again (wave 3) is shorter than (wave 1), so (wave 5) can not be longer than (wave 3). Looks to me (wave 3) is about 25 points, you do the math from (wave 4): 1647 or less? After that the same scenario again as ES Best to your trading!
That would make sense. Some of my late readings look less and less like noise and increasingly like a bullish signal with $64 as a target price, but there's definetly nothing bearish going on so a good strategy in this case would be to write puts.
kind of funny, a couple of weeks ago i was reading a thread where everyone was bearish....and i was short Real Estate. I was stopped out by my best friends DHI and HOV this week. I switched to long on a tech stock..RIMG.. due to the short term trend...even though i like to short. I think the contrarian in me is telling me that becuse everyone is at least mildly bullish today...i will get stopped out again!
So, at least this morning your contrarian instincts were right again: the market takes a dive. Keep us posted. Good instinct trading!
In summary: Wave 3 of iii is progressing nicely in all four indices. I would expect wave 3 to extend some time soon, or possibly wave 5 if it doesn't, to reach our upside tartgets of NAZ 2560 and SPX 1346 before wave iii completes by Jan/Feb 2006. Best to your week and your trading!
Did any of you guys notice, what appears to be, a fifth wave failure in the ES versus NQ friday. The NAZ rallied to make new highs, cash and futures...but the SPX failed on it's attempt?
Yes, I think so too... I see another minor wave up like the two recent ones, but was surpised the market didn't react greater than it did when the ES/NQ diverged friday morning.