US mkts are waiting to move higher past S&P500-951 to 990-1000 mark with a lot of doubts. Experts are getting whipsawed on regular basis.
Writing higher calls while playing out the uptrend is one way of playing it safe. This is the phase of the tip of the pyramid where you scale down your positions in parts and be ready to exit all longs on the first sign of a reversal confirmation(A close below 4525 as of today).
7 comments:
Ilango,
Thanks for the update on wave counts.
If it helps you count on me to keep asking you questions, especially in difficult times.
I have been trading in the markets for some time now. Am not bad myself (do not get trapped easily), but find i have lots to learn. If it is ok with you, we could exchange notes frequently, not just on the forum but on mail too.
GK
Ilango, The wave count is also very logical...the S&P is failing for rthe 8th day to cross 950 levels..Most Mkts trading at double Tops..so a Resistance n correction is due I suppose. Tonite is Jobless claims n retail sales Nos. Lookin at charts, if it is < expectation then we will see some serious hammering in the US.
Hi..GK & JK,
Thanks a lot for sharing your views here. I truly appreciate them.
Best regards.
ilango
Ilango, I dont understand EW, but follow the rest of the technicals. I Hv a question for U, can EW be used during such short durations like 5Min etc to get the ABC n waves etc..
Hi..JK,
You combine TA & EW, the success rate improves.
By following 5-minute EW unfolding, you learn in quicker time the various kinds of wave formations. And the same gets repeated in daily, weekly. This helps you in identifying them easily.
Today's pivot is 4588 and the market is close to it with intra TA indicators at the bottom with an "abc" kind of corrections nearly over. If the mkt has to reverse, this is a good area.
Best regards.
ilango
Thank u Ilango..makes sense. What do u think, should I carry shorts into tomorrow ?
Hi..JK,
Though prices don't encourage having shorts, my view as posted here is that we are closer to a top. The only question is how long it gets stretched..may be Friday/ Monday.
Now it's your decision.
Best regards.
ilango
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