Quick report update:
In this post I wrote , "So, primary model is for JNUG to pull back to the 30 or 50 fib and then head higher.". Well, 3.65 is the 50 fib and we are right there. I'm about ready to pop up and attack again. Be careful that it doesn't extend the C wave down to the 61.8 on you.
If M+M bottom here then the broader market rally is probably over and will reverse mid session to close red. That will be a massive market sell signal and a TVIX entry signal if you are on the sidelines with that ETF like I am.
I think that will likely signal the end of the 2009 bull market.
Cap'n,
ReplyDeleteYour sanguinity is uplifting, and infectious. I've been studying EW basics and am understanding your charts. I've been reading your blog for a little under a year. I know that emotion has no place here, but I have to tell you that watching the equities grind higher and the M&M drift lower can become unnerving. Most of my powder is dry, but I'm still sitting on those AMZN, GE, TZA, JNK, JNJ and XHB puts. All Jan '15 expiration except GE in Jan '16. Just waiting, ready, and anxious for this market to finally roll over. A sincere thank you for your guidance.
Steven B.
You're welcome Steven. The options game is a tough one to play well because of the spreads. I explained that this is why I liked TVIX as a shorting mechanism. FWIW, I am looking at today as a re-entry day. If $COMPX goes below 4638 that is my re-entry signal. With tight stops as usual.
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