Why I decided to average down into TVIX in the after hours.

Besides the fact that I think the DJIA peaked wave 2 today, they really ran the options down today in order to manipulate the max pain point.  This produced a much better looking 5 wave count on the 60 minute chart.  On the 15 minute chart I also see 5 perfect looking waves down with the 5th wave headed straight down into a very hard capitulation.  TVIX lost 10% in just the last 2 hrs of trading as a result.  While I wish I had been on the sidelines for all of that instead of just part of it, I have to take advantage of their manipulation of the price and I have to trust the wave count telling me that 5 waves are down and thus it's safe to buy.

What I cannot be sure about until tomorrow is whether we just get a small move up to the prior 4th in an a-b-c tomorrow AM and then turn right back down for more pain as we approach options expiration this week.  If we only get a small 3 wave move out of the open, I am going to quickly dump all of the new TVIX I just bought.  That new money was put in there to catch a gap.  I will not be patient with so many eggs in one basket.  I do worry that they might run it down to $3 for nice round number purposes.  They could do this by making this an extended 3 so that what I have as 5 isn't really even 3 yet.  But I do like the 2-4 alternation and I do like the way that 5 plummeted below the 1-3 line.  That is a classic 5th wave capitulation move.   That is why I sold my winner to average down on my loser, something that I normally will not do.