Today’s update is being posted as an Eye of the Storm Podcast. After last week’s strong rallies Thursday and Friday, I received many comments suggesting that the markets have short term bottomed and will continue to move higher – (Yes, I did get some ‘new highs’ comments) – I continue to feel that the intensity of the rallies along with the amount of price gains were stronger was due to Friday’s expiration in AAPL, AMZN, GOOGL, FB, MSFT and a few other tech giants. Unfortunately, the needs to confirm direction and the wave count and that will likely be given over the next session or two.
I also present the alternate view whereby the NQ has completed an Intermediate degree A-B-C decline with wave C finishing at 11491. If this is the case the labeling would reflect the completion by placing a Primary wave A as complete at the 11491 low. I also lay out the parameters and expectations for a Primary B wave rally. Including the potential for an irregular “B” wave unfolding.
I updated the labeling and the view for the NQ and now having completed Intermediate wave 3 at the 11491 low and remains in the process of putting in an Intermediate 4 wave countertrend rally. Parameters are given for additional downside what to look for should either side be confirmed.
Longer term I am continuing to view the markets as being in the process of putting in larger more time-consuming corrections.
I also take some time to discuss my style of trading, which is day trading, versus position trading or carrying position built on a directional bias. I don’t and being a day trader allows me too NOT be bullish or bearish but to trade the price action, which thus far has been successful in producing consistently profitable days.