Lee,
Lets see if the 3-DAY pattern works.
DAY 1 - STRONG DOWN MOVE
DAY 2 - FLAT TO SLIGHTLY UP
DAY 3 - STRONG DOWN MOVE
Right now the futures are fairly positive, so unless that changes, the open should be positive.
If we regain all of yesterday's loss then I would turn bullish, but if the DOW only moves up into the 50-75 point range intraday, then I feel the 3-DAY pattern is still alive.
This 3-DAY pattern is common, and a major cause for WHIPSAW for long
positions initiated on DAY-2's.
The response to my SELL SIGNAL was right on the dime, so that implies a normal standard pullback, not small - not large, for the immediate short-term cycle.
If the DOW does move up 50-75 points intraday, I may reinitiate puts again, since I closed some yesterday and play for DAY 3.
Frankly, my system is designed to anticipate the move, so it is not linear. What some may not realise, the initial move at a turning point could be 25-50% of the whole short-term swing.
seeya |
