Wednesday, November 4, 2009

Its more clear...

Well...its best to keep your eye on the target and not let the intraday moves whip you around. Did I mention that [ii] was going to be choppy? :-P
Looking at 104.3 as a potential low point for B (62% retrace of A) and then up to C at 107.55. If A=3.25 then C=104.3+3.25=107.55...funny how the numbers work out. So I am looking at hitting that target some time tomorrow or Friday. The trendlines point to the peak occurring late Friday.
Looking for a bounce on the VIX off the 20MA.
CPCI:CPCE MA's finally look like they are on a collision course again.

In conclusion, wave 2's are choppy and whippy. Keep your eye on the target (50%-62%) retrace. The numbers on this are working out to a 62% retrace, so I would take a small position at the 50 and layer in a larger amount at the 62.