Best 3-day move in a while … this type of thrust tells me that we are in a Wave 3 move. Next to come is a 4th wave pull-back and then a final wave 5 push to most likely new highs for this move.
I believe that we are at or near the end of wave 3 … what makes me think that is the slightly different pull-back that we experienced yesterday afternoon. The pull-back was the strongest we have seen since the move started Monday morning. A wave 4 pull-back should go at least to the 25% retracement area and most likely the 38.2% / 50% areas.
I will be looking to be flat in my trading accounts this morning after pruning some smallish overnight positions. If the set-up is good I will try and short the wave 4 move, but if not I will be patient and wait for the end of wave 4, to play the final wave 5 push. Don't kid yourselves, the easiest most profitable part of this move is over (wave 3).
Cheers … Leaf_West