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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Philipp who wrote (24470)	8/17/1998 8:12:00 AM
From: FJV	Read Replies (1) \| Respond to of 94695

1) The Russian market has not been open since Friday. With the moratorium on debt imposed by Yeltsin, I doubt it will be up again any time soon. The last quote you see is for 8/14. 2)Globex is very thinly traded and should not be deemed a reliable leading indicator for today's trading activity, unless it locked limit down early in the session. Franco

To: Philipp who wrote (24470)	8/17/1998 2:25:00 PM
From: Bull RidaH	Read Replies (2) \| Respond to of 94695

Phillip, Unfortunately, globex is crucial to the wave count, because waves are completed overnight that would ordinarily form during the day. This prevents cash equity and option traders from benefitting from the full trading range. Last night's globex selloff obviously marked the end of this 5th wave down that began on Thursday morning. I was expecting it to conclude Tues. am around 10:00. However, after close examination of the wave structure from Thursday's wave 5 beginning, it is now obvious that we had a fairly unique variation of a 5th wave, which is known as an ending diagonal. Instead of the normal 5-3-5-3-5 structure, it completes as a 3-3-3-3-3, thus pulling up short both time and distance wise versus the completion of a normal 5th wave. I know this wild action looks and feels like price manipulation, but it is actually just the normal completion of this type of 5th wave. I made the error of not scoping for this possibility closely enough. But after 1071.3 gave way to the upside on the futures, it was obvious that this was the setup, and upon close examination, I found the ending diagonal count works much better than the standard conclusion to the 5th wave. Fortunately for myself, I was able to cover shorts in time to avoid damage. Hopefully others smelled trouble even before I did and cleared out too. From here, we're probably looking at a couple weeks of upside action, with the compulsory pullbacks along the way. Good luck!! Regards, David