is not done moving up? I have taken a short position only to reverse later upon my realization that the recent correction looks like a wave 4. Yesterday, with the 2 downgrades, SHOP dropped 3% and I was able to revise my count to make the recent correction a wave 2.
Today's rally proves that it was a wave 4 afterall with a perfect 38.2% retracement.
and valleys of the EW waves. Currently wave A of 2 (SPX) is completed and coincides with wave 3 top (UVXY). Wave B(SPX) is in progress. Top of B should coincides with bottom of 4 (UVXY). Wave 5 (UVXY) and Wave C (SPX) shall be charted later.
the final stages. This is the potential road map based on a Fib 61.8% retracement. Judging on the strength of the rally off the 12/24 low, do not be surprised that the wave (2) retracement could be a lot less than 61.8%.
% with a target of $3.15. I can sell June puts at $3 strike. Premium is $0.55. Margin requirement is $300 minus $55. If $3.15 held by June 21, I get to pocket $55. If it goes below $3, I get to own 100 shares at $2.45. Not bad.
approach the intermediate Cycle Low, It looks like it may finally be topping.Fibs targets of 50%, 61.8% and 38.2% are shown. The 38.2% coincides with the previous wave 4 of a higher degree and would be my preferred count.