The market may have completed yesterday what I thought it had completed on October 2nd: wave "a" of an a-b-c decline, or wave "1" of a developing impulse down to much lower levels.
The doom I was sensing before yesterday's open did result in a new low. And the reversal potential was flagged in real-time on Stocktwits and Twitter when TRIN, A/Ds, and ticks all suggested a wash 'n' rinse was possible, posted at 10:48am.
A wash 'n' rinse is a failed intraday breakout or breakdown. It was alluded to in yesterday's post as well:
"Could the market get below 1926.03 and reverse? I believe it can, but it would have to be quick about it."
It worked better than I could have ever dreamed. OEX 880 calls went from .15 to 3.50 (and still closed OTM. I'm flat.). I now have free VIX calls and, due to the action in the euro, free FXE calls.
The market could continue to rally to the 61.8% retracement at 1983.35 after some filling in today. By watching how the waves develop, a better read may appear should it get there. It could represent a great area to get short.
What if the market is forming a rising wedge or a triangle? Watch the 2000 level. For me, that would be the first tell.
No comments:
Post a Comment