The only question that matters out of these pretty pictures, is "How do I make money from them?"
First of all, I am a firm believer in not trading against the intermediate trend. For me, intermediate is the next day or two. Second, I am most interested in "biting out the middle". This means I am only interested in juicy setups and not marginal trades that I think do not have room to run. (Of course, I am also a firm believer in being nimble and turning on a dime if the market pulls something weird out of its hat. -g)
So, today, I think the trend is up. The gap-up, if we get it, will make it harder to get on board the trend. It will be difficult to judge when the middle of the move is ending. I think we are in a 3 here, but it'll be hard to tell if the next pullback is just a pullback in the 3, or the start of the larger 4 retracement. If we get an early pullback, I'd look to buy it. If the run takes a nice shape for the 3, then I will look for a quick short in the 4. After that, I'll try to judge when the 4 is ending and get ready to jump on the 5. Doubt we'll have time to start a 5 (of this 3) today. |
