Professor’s Comments December 29, 2022
Posted by OMS at December 29th, 2022
Yesterday’s decline on the Dow was NOT impulsive, so it’s likely that yesterday’s low was the ‘X’ wave in a W-X-Y pattern for sub-wave 2 up. If this is the case, the Dow could still rally to the 33,400 to 33,500 level before it begins its Wave 3 down.
On the other hand, the Russell 2K fell to a low of 1722 yesterday, well below my ‘Line in the Sand’ for that index. I previously said that the small cap issues would lead the market lower as Wave 3 of Major Wave 3 down unfolds. This is happening now.
So right now, I’m holding my shares of TZA and looking to add more shares on any rally. Same for shares of SQQQ, my second favorite ETF, to ride wave 3 down.
If I’m right about a potential ‘Z’ wave rally in the Dow, I’ll look to add shares of SDOW to the mix on any rally to or above 32,400.
I continue to hold my March 17 Put Options in DIA and SPY.
That’s what I’m doing,
h
Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
FAQ
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Category: Professor's Comments