SKF (UltraShort Financials)I’ve been looking at SKF and SRS as opportunities to go short due to the clearness of their wave patterns – this indicates that they’re highly emotionally driven markets (since the October high).
Currently I’m exiting my BEARX fund and getting back into cash since it looks like we ended the 3rd of the 3rd down with a real bang yesterday (sort of a downward blowoff). 3rd waves are always the largest in depth and breadth, so it’s no surprise that the market indices fell so far. Hopefully the bullish correction will be comparable and we will be able to get a good entry point in SKF for the 5th wave down.
Approximately the week after next week will probably be a good time to re-enter short positions for the 5th wave downfall which should bring the DOW below yesterday’s low. But we’ll have to wait until we’re convinced the 4th wave is complete. (It’s also possible that we could be in a correction of an extended 3rd.)
Currently I’m exiting my BEARX fund and getting back into cash since it looks like we ended the 3rd of the 3rd down with a real bang yesterday (sort of a downward blowoff). 3rd waves are always the largest in depth and breadth, so it’s no surprise that the market indices fell so far. Hopefully the bullish correction will be comparable and we will be able to get a good entry point in SKF for the 5th wave down.
Approximately the week after next week will probably be a good time to re-enter short positions for the 5th wave downfall which should bring the DOW below yesterday’s low. But we’ll have to wait until we’re convinced the 4th wave is complete. (It’s also possible that we could be in a correction of an extended 3rd.)
1 comment:
Wow! My thoughts exactly! This may very well be the start to a 4th wave up. Or(hehe are you ready for this :) ), we hit a bottom and new ATH's are coming. But, I don't think so. This market wants to go down. I suspect some sideways movement for the next few weeks and at times it could produce high volality. If this 3rd wave down does extend, we should know very soon. Hope all is well in Seattle! -Ben
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