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Monday, May 4, 2009

Elliott Waves Can Save You Dough

My chart from Friday

Sometimes EW's are great predictors of things. I covered QID early today for minimal damage and my 15% SDS hedge in my long 401K. I didn't buy any more longs at the moment other than my 401K mutual fund holdings I've had since early March.
However I knew enough not to try and short things. I have no short plays at the moment although I think the market is heading back to 896 support so its not a bad spot to try and pick off a scalp. However your in the mist of a wave [iii] and its gonna hit the "third of a third" soon so that's playing with fire.
But knowing this is a P2 has saved me a lot of $$ since my permabear status always tends to pick spots to short rather than buy longs (other than my oft-mentioned bulky 401K mutual fund longs). But that 200DMA is a magnet. The NASDAQ hit its 200DMA today.
Also the daily RSI is finally breaking upward. I think it hits at least 70 before C wave tops out.
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