Market Update: Im baaaaaack!
Actually, I gave up thinking about going on vacation so I have some time to alert traders that want to use their own charts to make buy and sell decisions instead of being glued to TV's since Friday afternoon.
Friday's selloff, and the media coverage all weekend, put a definitely bearish slant on the market that had a lot of trader's feeling comfortable staying short over the weekend or selling Monday's open. Sentiment reached panic levels as traders were convinced that the financial sector was in so much trouble the market needed a rate cut from the Fed or it was all over. And yet, if you read the weekend update, I was confident we were much closer to the end of this move down than the beginning and that the Fed would not need to take any action on Tuesday. The weekend update stated the following,
From here, Dom acknowledges that the bears must see Thursday's high as an abc for wave 2, making Friday's selling a wave 3, but this is a low probability setup. Dom's working count has this leg ending soon, but also critical levels where this count has to be abandoned. Remember, price levels are the key to trading here, not unconfirmed counts.
TTC came into the week, as usual, looking at all the available options and had 5 charts to work with today. Despite the horrible sentiment on the Street and on the news, only one of those charts had a bearish outlook, and that was such a low probability count that I would have seriously considered giving up if it played out. In fact, as I went to sleep Sunday night, my only real concern about getting long Monday was that a 9/11 type event might occur and really flush out some panic selling.
Elliott rules eliminated this only bearish chart Monday morning, and now there's obviously no need for an emergency rate cut. Most observers seem to be laughing at today's move and saying it was all short covering. I'm happier calling it "Trading the Unbiased Way" and watching members bank a large part of the $10300 that each SPU contract offered. After all, the discussed chart in our real time chatroom had a target of 1430.50/1435.75. Today's low, 1432.30.....Priceless.
But, even with this beautiful rally off the bottom, fueled, as I believe, by short-covering but also by some genuine value buying, there's no way for analysts and chartists to have an exact target for this move. The future will continue to be cloudy for most, but TTC members still have 2 valid potentials available at the site and we'll monitor the price action through Wednesday to determine and trade the correct pattern. Once the Fed is out of the way, I'll immediately look to the bigger picture where I already have 3 excellent ideas that will become our Market Maps like we did in the aftermath of the March lows. Remember those? Our S&P target was 1556.
Members, judging from my emails, I'm sure most of you had an awesome day. Be sure to look at this weekend's charts to see how those ideas worked out. I will post the 2 winning charts, along with all my other findings tonight, to tomorrow's folder as soon as I can.
If you aren't already a member, join now to get these charts and a piece of the action! Days like today prove who cares about your position in the market! If you would like to take a peek at not only those charts, but stay the whole week with a Full Refund if we don't suit your needs, join and cancel within a week for a full refund! Join now and after staying a week within all the forums and live chat room it's simply not what you need, email me and ask for a full refund. You won't find an offer like that anywhere else.
Registered members that need their old username to subscribe, simply email me at Dominick@tradingthecharts.com
Have a profitable and safe week trading, and remember:
"Unbiased Elliott Wave works!"