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If you are counting the move as five waves, then, though a test back
lower would be expected, one would assume that, at least for the medium
term, a bottom is in. Five wave patterns do not stand alone! Another
rally, past the highs so far in off the lows would be expected, WITHOUT
MAKING A NEW LOW.
BUT, I COUNT THIS AS THREE WAVES. Note that if the S&P cash rallies past
1021, or the Dow past 1012, there is a good chance that, either the
bottom is in, or there will be a rally toward the mid-8000s before
prices turn lower again (for a triple three down).
Steve Poser
Peter2150@xxxxxxx wrote:
>
> In a message dated 98-09-02 14:34:50 EDT, ggray@xxxxxxxxx writes:
>
> > We just finished 5 waves up from yesterdays 940 snp low. It's now
> > 2:15pm edt. If we rally back up now it's lala land. All the put
> > holders (me included) are bewildered as 6 point puts yesterday are now
> > at 1 3/4.
> > In concert with these historic times the market should plummet into
> > todays' close and/or some major international event(s) will unfold
> > into the lunar eclipse this weekend. No doubt the bulls are feeling
> > like it's 10/97 revisited.
> >
>
> Gary
>
> You and several others have done an excellent job of sort of predicting
> what the market will do. This is easy sometimes, compared to trading it.
> Those of you who have puts, were given an early christmas on monday. Not to
> have taken profits was and is folly. Now the market is taking them back.
> There is nothing to be bewildered about what is happening to the puts. The
> volitility on monday drove them to very profitable values. Now they are
> returning to what they are, a wasting asset. Even if the market drifts back
> to the lows, it is doubtful, that they will return to their former prices.
> WIth options, a fast run is never a bad place to take profits. The home run
> just doesn't happen that often.
>
> Pete
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