So far the model is playing out as expected. Wave 3 of 1 of 5 of C took out both the upper and lower rail of the 4th wave HT in one fell swoop. I expect that the DJIA will bottom in the early afternoon to form red 1 on the chart below and then rally into the end of the day to form red 2. Alternately, if the DJIA closes at the low of the day today then tomorrow is the a-b-c into red 2. But after red 2 is done we must expect that red 3 of 5 will transpire and that could be a single day loss in the 600-800 point range.
Ultimately this model says that black [5] closes below black [3] to form lime 1. If this happens then I will give them back my UVXY and let it collapse into lime 2 only to buy twice as much if lime 2 is formed via a-b-c as shown. These things tend to play out rather quickly so as to produce shock and awe that disables as many people exiting the worthless stock Ponzi with their money as possible.
If this plays out into lime 2 then you will mos def want to be into UVXY for lime 3, it will be a doozy.
As always, odds, not certainties folks, even if it does sometimes look like a crystal ball. As soon as you forget that this is probabilistic and not a sure thing, Mr. Market will eat you for lunch.
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