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Realtraders,
Over the weekend, I was asked by a fellow trader what my thoughts were
regrading the markets current condition. Below is a copy of my
comments....albeit informal:
Boy, you are asking for a lot! Honestly, I wish I knew!!! Unfortunately,
Friday's decline caught me by surprise...big time. I thought we put in the
low earlier in the week!!! The only saving grace was the late end of day
rally. As you probably know, my short-term 55 point wave structure has now
failed but the good news is that the Dec '97 - Jan '98 decline measured 73
points on the S&P Cash. If you calculate the decline on the current
decline in the cash market, we get a decline of 76 points. Therefore a
match and some form of support, but for how long, I just don't know. This
is now an extended wave structure and failure is possible but some form of
bounce should be expected. Tomorrow is a very important day. We need to
avoid a big decline! And we need to bounce soon!!!!!!!
Finally, since the 55 point wave structure has failed and we have now
moved to the next structure, it begins to shake the stability of the market
to sustain a strong rally that would have taken us to new highs. It is too
early to tell at this time.
Personally, I was doing a lot of stock position buying during the middle
of last week, but with Friday's decline and a failure of the smaller wave
structure that I thought was going to hold, I have no choice to become more
cautious on this market. I will be pulling a lot of my GTC buy orders that
are slightly below current levels on my stock positions until I can
determine what the market wants to do.
We need to rally!
Thanks,
John Boggio
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