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

To: GROUND ZERO™ who wrote (36972)	2/2/1999 3:11:00 AM
From: Bull RidaH	Read Replies (2) \| Respond to of 94695

Gordon, Assuming tonight's Globex low of 1269 holds, we have some hard and fast numbers to work with for the final rally up. Wave rules require this wave 5 Zig-Zag to retrace 80% of today's move down (1290.5 -> 1269). That brings us back up to 1286 minimum. The maximum allowable move for this wave is 47.5 points, because both waves 1 (1/25-3:20am-1222 -> 1/28-9:50am-1269.5) and 3 (1/29-2:50am-1243 -> 2/1-9:55am-1290.50)were 47.5, and wave 5 CAN NOT be larger than both waves 1 & 3. So this would allow wave 5 to run up to as high as 1316.5. However, the preferred larger wave count I'm working requires the all time contract highs NOT be broken on this move higher. So I plan to play it by ear once we get above 1286, and if we hit the 1295 area, i will close my longs bought tonight at 1271 and step aside. If the all time highs ARE taken out, I will step back in on the next dip in hopes of riding a wave that could send us to as high as 1316.5. Otherwise, I will look to begin agressively shorting weakness below the 1286 area if the pattern appears to be complete. As for the Tuesday at noon timeframe for a potential end of this wave, i'm going to set that aside for now, as this 5th wave could take a day or two to complete. Right now, i'm more concerned with what happens after the minimum targets are met (1286). Timing will also be aided by watching for a Zig-Zag pattern from the low on either globex tonight or RTH tomorrow. Zig-Zag being an ABC 3 wave pattern, with A being 5 waves, B being any corrective pattern (i.e. zig-zag, flat, triangle), and C being a 5 waver or ending diagonal (which is itself a 3-3-3-3-3 pattern). When i see it end, i'll post a trade alert. Regards, Buddy P.S. Greed is good, and days off are for wimps!! <g>