The collision of global markets and social mood

Monday, June 13, 2011

Bounce Mode -- Update

By my read, we completed a small 5th wave on Friday afternoon within a wave 3 down. That leaves a larger 5th wave down still to come, but not before a 4th wave bounce. This 4th wave, if I'm correct, could take us to 1295 but not higher than 1311.43.

This morning's thesis looks incorrect. It appears that we are still in a 5th wave to new lows, which could chop its way down into the 1250s. The good news is that the upside target is still the same . . . 1295 -- 1311 or higher. This is an ideal environment for hedging. Currently long SPY 128 calls against SPXU.

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