Professor’s Comments – Before the Open 9/29/21
Posted by OMS at September 29th, 2021
Its likely that the Dow completed sub-wave 1 of Wave 3 down yesterday. The decline was impulsive with high volume, and consisted of five waves down……everything the first wave of a Wave 3 down should be.
Yesterday’s late rally was likely the start of sub-wave 2 up. This wave should retrace about 1/3 to half of yesterday’s decline and complete somewhere between the 34,500-to 34,600 level. Once sub-wave 2 up completes, the next wave down should be sub-wave 3 of Wave 3 down. It should drop the Dow well below the 20 September Wave 1 low of 33,613, probably closer to 33,100.
I sold about half of my inverse positions near yesterday’s low, so I will be looking to re-establish those positions near or above the 34,500+ level. I will use the Scalp Trading indicators on the 15 min bars to trigger the trades. I’m using a slightly longer time period to trade this sub-wave, mainly because I want to make sure its complete before re-establishing my inverse positions. Students can also use the 30 min bars for this purpose.
Sub-wave 2 up could complete as soon as today, so Thursday and Friday could be extremely volatile.
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