Miss the run up on SPY and IWM? Here's a another suggestion. I'm expecting a bullish run into Q1FY17. These are arithmetic fibs, so my targets will likely be adjusted higher when I get my spreadsheet with log-fibs open. I'm not sure about the timing, but here's a stupid aggressive trade idea... Short (sell) some puts, say Mar (Q) or Apr (EOM), at 32 or 33 strike. Long (buy) some calls, same expiration, ATM or perhaps as high as the 76.4% extension. This extremely leveraged position would be taken as a lotto...with $$$ you can afford to lose. You'd keep the premium as long as EEM stays over your put strike, which it clearly should if this analysis is correct. This analysis is incorrect under 34.14, and a new set-up would need to form. Could be a deeper 2 of (3), or something much worse. I currently have no position in EEM.
Comments
nick.holland78
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Pattern failed. Will reassess. Don't know how ex-dividend this week affected the ETF. No long set-up at the moment for short-term traders, clearly.
nick.holland78
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Hold over 35.84 and take off with strong volume, about to confirm this yellow count. Stop below 35.07, or certainly at 34 for swing traders.
nick.holland78
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nick.holland78
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Still a rough outline until I get my fib calculation tool back. Hard drive failed last week...
nick.holland78
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Overlap off the low suggests this could be a leading diagonal with a retrace to come over the next several days or so. Continue up strongly from here over 37, certainly over 38, and we're in the heart of a 3rd. Never ever trade against a 3rd. You don't have to go stupid levered long of course, but that'd be a better way to throw money away then shorting a 3rd wave over support.
By the way, that was a reference to End of Month, not Eco Oro Minerals whatever...
Here's the hourly chart...