Monday, November 2, 2009

[i] may not be over.

Looks like [i] may not be over. (v) looks like and ending diagonal to me (bullish falling wedge). My primary count is that we make a marginal new low tomorrow and then we start on our trip to the 107.55 area. Or we just start on our trip to [ii] directly. Either way I expect tomorrow will end positive.

Remember in the comments from yesterday that this week was going to be choppy...and not fun :-P Shorts and longs were both hating it at various points through out the day.

In general the wave 2 of a degree retraces back to the area of the wave 4 of the previous degree. In this case, this occurs around the 50% retrace. I would start getting short there. But I do expect it to push higher as some shorts get squeezed and some bulls don't want to be left behind.

I have long positions and will probably enter an order tonight to pick up a few more at the open if we gap down.