We have executed short positions in the Dow and the S&P 500. We are now 100% short. more later. Good trading and God bless W. B. Busin
Are you worried that you are going short now at the bottom? Not that I can pick the bottom but are you concerned that you are going short after a 55 point move? Just curious about your approach today in going short.
Sure were concerned and still am. The rally came closer to our stop loss levels than we thought it would. The put call ration and other sentiment were at bullish reversal extremes yesterday. The fully exposed Refco fraud and significant losses there could trigger even more buying next week. The sell late in the day yesterday met all of our criteria, so we took it. Sometimes following the plan requires a nose clip. Above 88.50 gets us covered. Above 1191 near the close - with a confirmed buy signal will get us long or flat, as the case might be. Good trading and God bless. W. B. Busin
Market Timing for 10/17/2005 We are currently flat as our stops were hit early in the session. Even though the SPX 1191 level was also touched, we did not get long as the index was rejected there, and did not recover that level by the afternoon session's end. It did get close though. It is likely that the 1191 level will be tested again on Tuesday. In this upward move, a small but fine pattern has been repeated each day since Thursday during the 2-hour lunch break (noon to about 2 p.m.). It could be thought of as a re-coiling or re-structure of market internals. It is a down-up-down. The low just prior to or just after 2 p.m. has been a simple buy signal that has worked out quite well. We will look for another set up to get short on Tuesday or possibly near Wednesday's close. The congestion or, is it indigestion at lunch_ Five minute bars time loci, Tuesday, October 18, 2005: 12:30 12:45 1:10 2:10 Good trading and God bless. W. B. Busin
We are 100% short in both SPX and Dow 30 instruments. The time loci are synchronising and signals point to a sustained down move ahead. We expect this to be the last portion of the downward action from September 12, 2005. SPX Levels- 1170 minimum 1160 1142 Good Trading and God bless. W. B. Busin
Possible Bearish Scenario for the next 4 trading days: --down into Thursday's close or early Friday, then a pause or small rally for the rest of option expiration Friday. --this would follow a 3rd wave down and 4th wave correction inside the current 'C' wave down. That would result in a Monday decline for the 5th wave of 'C'. We remain hopeful that the search for a bottom will be orderly and hold at or above SPX 1090. "Keeping your head whilst all others ... " should be the focus. Good trading and God bless. W. B. Busin
Do we have more to go on the down side? What I see in these charts is an incomplete structure. It is near completion. More work to be finished. Good Trading and God bless. W.B. Busin
I see the 4th wave as complete. another count would make it a 'D'. I'm not attempting orthodoxy of Elliott. The hope here is that the 5th will be truncated in time and price - - saving us from a bloodbath. Real market crashes only happen at lows and that's what is being put in, imvhmo. Worst case scenario - if Friday puts in a higher but failing high, Monday could be quite memorable. What to do? Stand aside till the mist burns away. Monday will be quite instructive. See you then. Good trading and God bless. W. B. Busin P.S. Some have asked how my surname is pronounced. 'Bu' sounds like view. '-sin' sounds like seen. We believe it to have been shortened and originally Belgian.
Monday the 24th is upon us. Here is a chart of the Dow from the blog with a comment about getting long tomorrow. I'll post times for tomorrow in my next post later this evening. Good Trading and God bless. W. B. Busin