Weekend Strategy Review Additional Thoughts 8/20/17

Posted by OMS  at August 20th, 2017

After looking at a chart for the Dow (DIA) (see attached) and the other indexes, the retracement wave that I’m expecting early next week could be either Wave 4 of Major Wave 1 down OR, sub-wave 3.2 of Wave 3 down. We won’t know which one until after it develops. If it’s a five wave triangle, it’s likely Wave 4. If it develops as a simple a-b-c correction, it’s likely only sub-wave 3.2 of Wave 3 down. If the latter is the case, Wave 3 down has a lot more downside remaining before it completes. Also, if it’s only sub-wave 3.2 , it means that we should expect another large impulsive down move later in the week as wave 3 of 3 down takes effect.

In either case, the Dow should rally early next week. If this happens, I’ll be looking to get short near the 21,800+/- level on the Dow. I believe positions in inverse index ETFs have a high probability of success from that level.

That’s what I’m doing,

h

FAQ

Only getting the Professor’s Weekend Review? Try his daily update Cum Laude service for 2 weeks only $9.99 LEARN MORE

All of the commentary expressed in this site and any attachments are opinions of the author, subject to change, and provided for educational purposes only. Nothing in this commentary or any attachments should be considered as trading advice. Trading any financial instrument is RISKY and may result in loss of capital including loss of principal. Past performance is not indicative of future results. Always understand the RISK before you trade.