My pointing out of the diamond pattern on the NQ (even while it was in formation) and the price collapse that followed was spot-on. Well, that's all lovely, but here's the bummer part: we are nearing the price target.
That bums me out. Watching prices collapse is a total kick, and it always stinks to see it draw near an end. I have started covering some positions for nice profits, but I must confess a certain amount of chagrin at the entire affair. I'd prefer markets go to $0, but sadly, they always find support.
I even went long a big SPY position a little earlier today when it looked like a bit of a base was forming, but I got out at a tiny ($1,000) loss before any real damage was done.
I am keeping one thing in mind, though: oftentimes the lion's share of price change happens just before the reversal, so even if you capture 95% of the move on a time-basis, you can miss 30% of the price move in that final little scream. So I'm holding off on completely covering until the target is utterly achieved.
