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Wednesday, January 27, 2010

Elliott Wave Update ~ 27 January [Update 9:07 PM}

[Update 9:07 PM: Apple again today showed huge volume. I take it as converging HFT robo-traders milking it as much as they can with recent "blowout" earnings and their mega-iphone unveiling.  I also assume when the HFT's turn toward another target, Apple will retreat along with the rest of the market. What I am not sure is if it has one more squeaker higher left in it. The HFT's seem to want one. I shorted a small slice of Apple when it peaked again today. As I was refreshing my AMTD account balance today it was funny each time I refreshed it Apple had something like a $206.8869 or some mega-fractional number behind it.  I kept thinking of how the the cold, calculating algorithms were sucking pennies from each trade like some ravenous pack of piranha fish stripping its prey to the white bone.]

[Update 8:35 PM: Apparently Cramer is down on Citibank  So taking a quick glance, indeed he turns bearish on what could be the final squiggles of a wave 3 down.  It appears to be wedging. Remember the botched equity sale a while back on C?  They still need to dump billions of shares on the market.  But they need that wave 4 bounce first.]

Speculative chart:

[Update 5PM: Here is the DJIA. Again, its drawn as if today's low is a (b) wave low. Notice the time scale divisions would work nicely if the DJIA went to where its marked.]

Today could be a (b) wave low of Minute [ii] expanded flat.  We'll only know in a few days. But the form looks good and the reasoning behind a (b) wave is sound: The markets dropped very hard and the downward momentum was hard to arrest and therefore the (b) wave corrective was forced to a new low in an expanded flat. Not all sub indexes followed to a new low so that would also be appropriate.

There appears to be good reversal volume also so this should be the Minute [ii]

No matter though, as the same thing is implied: a Minute [ii] bounce back up. The important reason I mention a (b) wave is that if today was a (b) wave, you can expect a (c) wave and then maybe thats it.  So Minute [ii] could retrace back to the 50DMA and resistance and the open gap at around 1115-1117 and then reverse on a dime and begin Minute [iii] down. Like I said, place your bets....

As I mentioned the last few days, the blue box looked like a good target. I marked this chart with today's alternate as Minute [i].

I'll have more later.
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