Yesterday, we had a B-Wave triangle that we broke out of last night. Today we got some weird movement.
As we alerted to subscribers just earlier this week – we were short the TF Russell futures contract from 1145 as well as from 1197.5. We covered one of those contracts at 1110. But we still held the short from 1145.
We temporarily exited at 1105 – but then re-entered once we saw the pattern develop more clearly.
Just now, we covered that 1105 short at 1079.5. So if you calculate from the 1145 down to 1179.5 — that’s roughly 65 points, or $6,500 in profits from just 1 futures contract. Of course, it was not easy to hold it through some of the ups and downs — particularly when it went all the way up towards 1160, but in the end, we realized a significant profit.
We still have a few other positions open – including our high probability trade of the week — we’ll see how they turn out.
So what the heck happened today? Honestly, it’s really confusing – and I don’t have a strong confidence on the count — here’s my best guess. Either we are set up to go really really far down—further than I expected in the near term, or something is wrong with my labeling.
It’s possible today was an A-B-C flat, but I’m not sure because it doesn’t quite line up right:
This A-B-C flat is not what I expected today because I was expecting more of an impulse down to finish this c-wave. We also had to Fed minutes today Wednesday — so a slightly b-wave before some drop — but then it reversed—only to reverse again overnight. All our trade positions are very healthy and profitable – but will adapt according to the market.
Let’s see what happens tomorrow.