Above my preferred count, which shows, that we are about to see wave (iii) of iii of 3 of 3 down. This wave should be the most powerful wave down in this impulsive. A break below 125.85 should do the trick.Wave 3 should make it down to 117.07, which is where wave 3 will be 1.618 times the length of wave 1.
Only a break above 127.46 would delay the downside for a more complex wave ii correction.
Frog Boil, aka Wave 2
ReplyDeleteLast Sunday I Opined about a possible Frog Boil based on a proprietary indicator, the VIX/VXN Volatility Ratio.
Here is that Opine. Although prickly, not to be confused with porcupine.
http://oahutrading.blogspot.com/2010/09/holy-grail-part-2-vixvxn-volatility.html
And a new indicator. The PM Summation. This is a sub-component of my "Fear Factor" indicator.
It draws nice trendlines. When money runs out of bonds, where will it go to?
http://oahutrading.blogspot.com/2010/09/frog-boil-tasty-if-you-catch-it-at.html
Cash?
Real Estate (yeah right)
precious metals
US stocks
China stocks
Art work
More Harley's to sit in the garage
Junk bonds
Well look above, first the 20 point drop to get the frogs to jumps into the pot, then a spastic increase in "heat" with occasional relief in temperature to convince the frogs to stay in the pot while tiring them out in duration. Note the orange line the 38 Fibo as defined in the blue notes, which seems to be Gandolf saying "you shall not pass". Let the battle commence.
And here is the 9-12-2010 Chart showing the "Frog Boil" in action
http://oahutrading.blogspot.com/2010/09/frog-boil-tasty-if-you-catch-it-at.html