Value of Perfect Information

As the chart shows we only have a little more to go before hitting what I call a rock ceiling (approximately 10700). If we break through the line with ease then all bets are off. However, more likely we bounce down from there to retest the crash lows, or drop halfway in an ABC formation before heading back up to possible 61.8% level of the crash. 3rd scenario is we hit the line and go sideways for months.
My plan is to buy puts on DIA 4 to 5 months out when we get to the ceiling.
Today I bought March puts on Ford with a $9 strike. The price hit and exceeded the upper trend line as forecast. The money is throw away, which means no sell stop. I’m averaging in with small positions. Total commissions will be higher, but losses will be minimal if I’m wrong. See CEO site for past drawings on Ford.
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good luck,
Mark
Content on CEO Trader is opinion only, please trade at your own risk.

Labels: Elliott wave, ETF, fibonacci, Ford, indicators, PUT, stocks, technical analysis, DIA

Categories: Charts ,Elliott Wave ,Market Sentiment ,Markets

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