Professor’s Comments 4/1/2020
Posted by OMS at April 1st, 2020
The Dow futures are down over 700 points this morning, and the Model’s DXDs are showing a profit of over 2.30 points. I found it interesting that this mornings decline in the futures stopped exactly where I would expect a ‘B’ wave retracement of last week’s rally wave to stop….if the current retracement is part of an A-B-C retracement for Major Wave 2 up or Major Wave ‘B’ up.
So because I can’t be sure if the decline is middle Wave ‘B’ or the start of Major Wave 3 down, the Model will exit its DXDs just after the opening. If this morning’s decline is Wave ‘B’ down, the Dow could come roaring back in Wave ‘C’ up. This wave could easily carry to the 23,500-24,000 level and the odds for this potential rally vs. further decline are about even. I don’t do even money bets.
Given that we’re still in some type of retracement wave…until proven otherwise, I fell the best course of action now is to take profit and wait for a better opportunity when the odds are more favorable.
h
Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
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Category: Professor's Comments