Professor’s Comments – Before the Open 2/11/2022
Posted by OMS at February 11th, 2022
Stocks fell hard yesterday, and it’s possible that wave ‘c’ up of Wave ‘E’ up is complete. However, we still don’t know this yet as the Market Timing Indicators on the Dow, S&P, and NASDAQ have not turned negative.
Yesterday’s decline also occurred at the leading edge of the Fibonacci Cluster Turn window I discussed last week. The center of the window occurs closer to mid-February but given the high probability for Wave ‘E’ up to truncate, … as I said, a major turn is possible.
Yesterday was also a nice day to be trading the Arrows on the short-term (5 min bars). I was focused on IWM and during the day it produced two Green and two Red Arrows, all for nice gains on TNA and TZA. However, because the momentum bias was positive early in the day, I only took the two Green Arrow trades. Then once the bias turned negative, I traded the Red Arrow that appeared at the 12:45 mark and rode it into the close.
As previously mentioned, I believe that IWM is completing a sub-wave 4 retracement. So, when the Red Arrow appeared in the early afternoon, I eagerly jumped on TZA. I am still waiting for the Green Arrow to appear on the 4-hour bars of TZA to set up my longer-term position. That could happen today as the last 4-hour bar of yesterday’s trading in TZA turned Green. BTW, the momentum bias on TZA’s 4-hour chart is already positive, so a Green Arrow would be consistent with the direction of the momentum.
TZA closed at 33.69 yesterday. If sub-wave 5 up is starting, my next target for the ETF is above the 28 January high of 43.34.
I’m also patiently waiting for a confirmed Green Arrow on the 4-hour chart of SQQQ. The inverse leveraged ETF for the NASDAQ-100 is in the same situation as TZA, appearing to be completing sub-wave 4 down with positive momentum bias. My target for SQQQ is slightly above the 24 January high of 48.08.
Watching for Green Arrows on TZA and SQQQ.
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