Stock-Market-Observations

8/05/13 . . . 

READ ME FIRST

to help you understand my wave counting method.

It was 12:25 AM ET Tuesday when I finished this update.  Only people without a life (like me) will be reading this blog update tonight.

Presently I’m waiting for lower lows to verify the onset of a significant correction.

Jeff Saut is looking for a close in the SP 500 below 1700 with a verification of the decline with a close below 1684.

I went short on Sunday after seeing a possible completed 3 steps up.  It’s too early to go short, but that doesn’t usually stop me.  First hint of trouble and I’ll close out the position.

I have a 5 point profit tonight so it’s looking good for the moment.  But we know how quickly that can change and I wouldn’t be surprised by a rally in the futures before too long. This correction has more of a lateral look than downward, so I’m wary until I see a clear break to the downside.

The futures were subjected to a lot of oscillations on Sunday night and Monday, but I have buy stops in place.  These stops are moved down as the market trends down.

It was questionable where to place my Sunday night buy stop, so I placed it at a new all time-high.  The stop was never touched during the night (lucky me).  Today saw lots of oscillations, but the market was trending slowly down.  Tonight the index futures continue trending downward (down 4.5 points after today’s close).

If we have a break below the July 26th lows, it “should” be a clear indication that a trend break is underway.  I would likely add to my position at that point (if not sooner).

I’m writing this blog early because I’m going to be traveling the next few days.  If the market were to break down while I’m away, I couldn’t communicate effectively.  So today is just a heads up on a crazy “what if” situation.

This entry was posted on August 5, 2013 at 9:24 PM and is filed under UPDATE. You can subscribe via RSS 2.0 feed to this post's comments. You can comment below, or link to this permanent URL from your own site.