Professor’s Comments – A Few Friday Thoughts 9/30/2022

Posted by OMS  at September 30th, 2022

Yesterday’s early decline in most markets was likely sub-wave 1 of Wave 3 down.  The afternoon a-b-c rally was likely part or all sub-wave 2 up.  Once this corrective wave completes, probably near 29,400+/- on the Dow, sub-wave 3 down should begin.  It should be a strong, steady, impulsive decline.  Another money wave.

It’s possible that sub-waves 3 down, 4 up and 5 down of Wave 3 down will drop the Dow to the 26,500 to 28,000 level in the next week or so.  The 7 October turn date could be the bottom for Wave 3 down. My first downside trading target is still near 28,300+/-.

I’ll be looking to buy SDOW, TZA, SQQQ, and SPXU on Green Arrows if the Dow approaches 29,400+/- this morning.  I also be looking to buy a few shares (trade) the inverse of Cathy Wood’s ARK fund, SARK.  Nothing special about SARK, just that I really like to trade it on the 60s.  The ETF appears to have just completed a nice Hockey Stick w/Bade Pattern.  If I’m right, the next series of up waves could start soon. Take a look at the chart.

TWID,

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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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