Value of Perfect Information

The market is still making me look good. It must be laying a trap!  I tried to reconcile the Globex count with the regular session count in this post. Corrective moves, whether W4′s or a correction after a W5 are really difficult to trade! If you are trading a correction, you can’t fall asleep at the switch. IMO you need tight stops and quick profits. Traders can get chopped up in these meat grinders. Often they will bore you to death and just after you throw in the towel for the day, they resume the trend in a dramatic fashion. W4′s can be very profitable —  for brokers!

Here’s my chart with my best guess as to future ST direction. The lower blue line is the 38% retracement level that I have as my best target for the end of daily W4. Be sure to read the comments on the chart. Remember that this is just my highest probability scenario. You need to trade the market. One other possibility I need to mention, The market could rally as high as the gap at 907′ish and still be a valid W4. That would make for some interesting fibonacci relationships. I’m not predicting that move, just mentioning the possibility. Often before making a final assault on an important pivot, the market will try to shake out the weak hands. That is why I mention this possibility.

Categories: Markets

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