Last week we talked about the possibility of a developing Megaphone pattern. We really would like to see a higher bounce up to buy our puts (or sell short) cheaper. Please take some time and look at this chart. ..lots of info on it. Notice the higher target for the low risk short set up... still haven't got there yet. If the market craps and drops below the trigger point shown, we need to go ahead and get short for the bigger A wave shown.
Now here is some interesting ratios identified.
Notice that the A wave has dropped quickly to the 78.6% retracement of the previous rally? Twice now. will it do the same thing again?
After the A wave bottomed the bounce of the B wave came back up to the 38.2% of the rally measurement.... again twice.. will it do that again?
The final Bottom extended to 141.4% (1.414 is the square root of 2) of the rally to the downside... Yep you guessed it, twice! Will it do that again?
I'll be going on an extended trip traveling to some remote areas of the world for the next couple of months. I will "fall of the grid" and not have access to this chat room during that time. I hope "Nurse Diesel" can't find me for a while :)
Please make sure conditional orders are set as the next few months tend to be volatile historically. If the market breaks the August highs then the short play is voided for now. If we get the target area shown for the possible short sell then great! If the market breaks the trigger point then we need to go ahead with the short sell for Wave A down.
Please continue to help each other and share during the meantime. I am so happy with the friends we have here :)
Now here is some interesting ratios identified.
Notice that the A wave has dropped quickly to the 78.6% retracement of the previous rally? Twice now. will it do the same thing again?
After the A wave bottomed the bounce of the B wave came back up to the 38.2% of the rally measurement.... again twice.. will it do that again?
The final Bottom extended to 141.4% (1.414 is the square root of 2) of the rally to the downside... Yep you guessed it, twice! Will it do that again?
I'll be going on an extended trip traveling to some remote areas of the world for the next couple of months. I will "fall of the grid" and not have access to this chat room during that time. I hope "Nurse Diesel" can't find me for a while :)
Please make sure conditional orders are set as the next few months tend to be volatile historically. If the market breaks the August highs then the short play is voided for now. If we get the target area shown for the possible short sell then great! If the market breaks the trigger point then we need to go ahead with the short sell for Wave A down.
Please continue to help each other and share during the meantime. I am so happy with the friends we have here :)