Skinowski -- I don't know that you can count afterhours action in particular as you're left wondering just when it stops. Do you include US stocks sold overseas? ISLD stocks? Just the "official" AH sessions? Regardless, it's a good question that I'm sure will be discussed a lot by those who know a heckuva lot more than me.
As for the market, the reaction on the futures doesn't give much of a hint about tomorrow (though the S+Ps are skewed down a bit from fair value to start, I think, so they're more negative than it appears). But like yesterday, perhaps foreign reaction to IBM news will impact the morning futures. Anyway, max pain is over 43 on the QQQs. . . about 60+ NDX points above here. Heinz has a cycle low tomorrow. You and Shack have possible waves ending tomorrow morning (or done). All seems primed for a bounce, although Don Sew notes that there were Hanging Men in the Dow, OEX, and SPX. . . and that could portend more down (or not).
But let me ask. . . what if this doesn't bounce at 41 to finish off that "c"? In Allan's "e" wave, posted this morning (http://www.geocities.com/brafoo/NAZ_07-17_Triangle.html), we should drop back to 1900 or so. . . though not likely tomorrow, but there's clearly downside potential here even in the bullish wave case.
So, like all of you, I'm looking for a good risk-reward setup. A bounce at 41 seems good to me. . . and can fit in with Allan's read as long as we don't bounce tooooooo high. At this point, being confused, I'm doing the wise thing -- nothing. But it seems like there should be a nice bounce/reshort play shaping up, yes? It could fit with waves, hanging men, the usual weakness post options. . . and maybe that's what's making me nervous.
Anyway, enough rambling. If one of you has clarity, please share it. Apparently, my prescription needs to be refilled.
the fuzzy freep |
