Wednesday, February 4, 2009

Down She Goes!

Looks like our w2 subdivision made it to the 61.8% retracement line and died on the spot. It was further than I had thought, but it was certainly in the realm. Tomorrow, we'll likely have an unfilled gap down and possibly a test of ES 810 (and possibly a failure). We should be testing the bear market lows by Friday. Hold on.

Also, I've updated my wave count since 2007 (pic on the sidebar). In the end, here's what I was able to accumulate:

- aapl feb 80 puts @ .57
- aapl mar 75 puts @ 1.12
- gs mar 55 puts @ 2.31
- iwm feb 42 puts @ .88
- iwm mar 43 puts @ 2.37
- xlf mar 8 puts @ .66
- qid @ 55.03

I've been trading w/ futures, but I'm currently holding NQH9 short @ 1192

I realize most of these are sitting at losses, but they should be fat by the time this is over.


  1. Rich, if w2 ended today, then no bounce tomorrow? I accumulated mch put options over the past 2 days, but would add more on any bounce before w3 kicks in.

    Thanks for the update.


  2. I think we see pauses tomorrow but no more bounces. The path has been laid before us. But if we do get one, add to those puts.