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Wait and Watch Over?

Today the charts has confirmed beyond any doubt that the correct wavecount is this:


And the Acid Tests using the 2-4 testline proved right again this time:


Unfortunately for me I did not short at the top.  The price structures were so confusing at that time I had very low confidence it was the correct one.

Strike 1 against me this time around.  Can't win them all.

Next test will be if Spx resistance of 1150 be able to prevent a rally tomorrow:


Today's sell-off feels like a total freak.  And with most over-extended runs being able to return back to the iv-th wave;  it becomes a lot more confusing this time around as compared to the first chart above:

iv-th wave is at 1176.

IF the Jobs Report got healthy reception tomorrow;  Spx might as well break above 1150 then traders will be trying to chase the rally.

Then we will be back to square 1 -  Wait and Watch again for making additions to long-term investments.  It will become another trading environment traders will be happy while investors who did not buy at the bottom will be sorry.




Can't help it but we're still at Wait and Watch as investors.  It takes time.

For me, I am also a trader.  No Problemo Jose.


The last 2 charts above are the highest probability scenarios.

The the opposite of Black Swan is also possible

This 1-2-3-4-5 Type 1 rally since March 2009 to Present has already happened before.  This was the chart while it was unfolding in 1985:


This was the GOLDEN SWAN:


Type 1 rally is notorious for morphing into Type 2 rally.

We just don't know what will actually happen.  That is why I did not sell all my portfolio holdings even when I knew very well we are due for a correction how deep I simply don't know.  I was able to raise 25% cash so far with 30-40% objective just in case we go into deep correction or worse - a catastropic meltdown.