Geez, my prediction in this youtube video was spot on — too bad I didn’t fully trade it properly as I got out on the short side way too early. Will have to learn from this lesson
I thought the decline would end in the 1930s originally where the pink lines are. But because of extensions – it went all the way to 1804. That’s where I’m bad at — extensions.
Well, all those other bottoms were not actually bottoms — this one subdivided into 5 clear 5 waves and is the only way I can count it to legitimate form a bottom temporarily.
Now, we really need a bounce – ideally towards 1950 — so I can short this thing. There were so many false bottoms and this overnight drop was unexpected.
Well, surprisingly, our trades are actually still on track. We got a bit spooked today so reduced the size of our position taking a half loss — but then when the pattern looked good again, we issued another high probability trade on top of the existing trade –so now with this humongous rally – 1 trade is roughly flat – same as where we entered — and the other one is well into positive territory and hopefully both will expire for max profit on Friday.
This is a crazy market – I believe volatility will drop over the next week or so. Today’s low of 1804 was lower than the October 2014 low of 1813 and the August 20115 low of 1831.