Expected DJIA rally did occur, what comes next week?

In Thursday's update I correctly called a nice rally for the broader markets on Friday.  I wrote,"I sold TVIX as it kissed the top rail of the rising wedge from below ($3.44) at the open today.  Now that work is done for the day I see that the AM move down in the DJIA pretty much retraced itself by the close and that despite a trip to $3.62 today, TVIX closed @$3.31. But I did not buy back in after hours trading today because I think the DJIA has another wave up tomorrow before this sucker's rally ends."

Well, TVIX got all the way back down to $2.87 today so it was indeed a good thing to have sold @3.44.  I did get back in a bit too early @$3.01 but I had set my stops at $2.86 and as a result I was not taken out.  While not perfect, I did shave a nice 43 cents off of my cost basis so I was quite happy to take it.  I've reset my stops to $2.90 because it already hit my retracement target posted here in advance (model from that link is below).  So I expect it to go higher on Monday and if I don't get that then something is wrong and I want to get stopped out cheaply.






























Now that I am back from the business travel I had more time to look at the TVIX chart and so I do want to point out a potential danger that I found.  In short, there a way to count the recent action, while  bit convoluted, that would leave us with a rising wedge with a tiny 5th wave throwover (see model below).  Well, that would mean everything from $2.50 to $3.60 was just an a-b-c.  And while TVIX did retrace to the targeted area and filled the gap pointed out in the model above, it seems to have done so in 5 waves. 

Thus is is possible that we get a head fake up on Monday to either the red or the blue and then a lower low than today's low, and perhaps lower than $2.50 as well.  So I will have my hand on the trigger Monday at the open and if we cannot break $3.20 convincingly I will just sell and then buy back later in the day if it does end up going higher.  In other words, protect capital at the expense of gains in this situation. 

Really the best thing that could happen to me would be a clear a-b-c upward move (which would be my sell signal) and then a rapid 5-wave impulsive C wave collapse back down while I sit on the sidelines again looking to buy even more shares at lower prices. 

Eventually the topping process will complete and then TVIX is going to go up scary fast.  We've already seen some big upward moves and once the bear is fully unleashed on the broader markets, people will be fighting each other for this crash insurance.  But until we get a higher high than $4.20, we cannot assume the bull is dead and the bear is in charge.  It's getting closer though.  All the signs are coming together.