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Long before the bell :
Extracts of my mentor "
I hope that by now you have lost some of the sceptism you had about
the Wave Principle. You have seen for yourself now that it is one
of the most powerful technical tools available - if applied correctly.
People tend to dismiss the Wave Principle because of their inability
to put in a sufficient amount of committment which the Wave Principle
demands. So the end result is the attitude - "If I don't understand
it, then it's not worth understanding".
Coming back to the market, we are in the (iii)rd wave of the 5th wave
and as advised last week, the minimum target for this (iii)rd wave
(if it is not the extended wave) is 9454. If the (iii)rd wave is
the extended wave in the 5th wave - then the minimum target would be
9863 (161.8% of the (i)st wave). However, bear in mind, that in
5th wave extensions, the most commom Fibonacci relationship between
the 3 impulse segements of the 5-wave sequence is that the 3rd wave
is often precisely 161.8% of the 1st wave. Hence, if the (iii)rd
wave goes upto 9863 and then the market re-acts - it is still possible
that the (v)th wave may extend. In any case, we will follow the
market closely in order evaluate the various possibilities.
My feeling is that the market will gap up today, cross 9454 and then
re-act. This will then pave the way for an extended (v)th of the 5th
wave. It would be an ideal manner to terminate an impulsive 5-wave
sequence. However, the market rarely behaves in an ideal manner, so
be prepared for all the possibilities. If you have nerves of steel,
retain long positions and sit through any intermediate correction
that may occur.
Regards,
"
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