Thursday, June 28, 2012

Distinguishing Wave Personality: ObamaCare, US Economic and Eurozone Crisis




Today is an important day for world markets. While European regulators and PM's struggles to save Europe, here in the US, the Supreme Court rules on the constitutionality of ObamaCare. 

I personally will not be trading today. It's gambling and too risky. However, the chart above is just a possible scenario that I am watching today. Note that the opening print is 10am. I sometimes use this chart configuration to remove noise from the ON session and open. 

As you can see, this is somewhat of a different count from my last update where I was looking for a 4th wave. That 4th wave count still remains viable (see chart below)  BUT I'm showing this chart because often, the personality of waves can somewhat help you confirm your wave count. With two counts pointing down, the only way to confirm which count is correct is to look at the personality of the next decline. From the top chart, ff the most recent advance to 1328.5 was indeed w.ii circle, then we should see a swift and massive decline over the next few days that easily exceeds my target of 1295.75 (see chart below). 




I hope you found this post helpful and ...


Best of Trading




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