In the last few posts we did on this blog we were noting the symmetry support. We were called crazy for posting a support level as the market was falling and the news flow was bad. We have our own indicator it is called the "Unsubscribe list reading". This is when we do a post and we have a flood of people unsubscribe from our email list and call us crazy. Over the years we have found that when our unsubscribe reading is high the more the pattern is correct. (Editor's note – sounds kind of like SLIX!)
From the support levels we also had blue bars on our indicators which means the move before the blue bars is over. This is a good indicator for the highs and lows of any time frame. The DOW came into the Monthly symmetry support and we had Daily blue bars this is a good confirmation.
We were also looking at the SPY weekly chart how we had 127 bars low to low in 888 days. There were 5 things at that low that equaled 1.270 on multiple time frames.
Going forward we are going to be watching the SPY 126 level closely. We have played both puts and calls over the last month in this correction. Our biggest gains were with FAZ calls and AAPL weekly calls and puts.
AAPL had timing at the 405 high and now AAPL is back to that high so if AAPL breaks $405 AAPL could see $500 very quickly.
Overall we do not care if we go higher or lower we trade each wave and I do not think there is a need to predict that far out with where the market is trading right now. We are correcting up which is obvoius the value is what the pattern looks like after we complete to the upside of the current leg.
The TF,ES,NQ,SPY and YM all look a little different right here so it makes it hard to have a bigger outlook. For now we are playing each day as a correction and looking at each minor and major resistance as they come. We are playing more short term options holding for 1-3 days with AAPL, NFLX, and FAZ.
The tricky thing right here is there is a reason for the lows at 10,600 on the DOW it was symmetry support so technically we are still in bullish condition. From the low we are having overlapping corrective waves which is bearish. The one thing to think about is the support is Major and the corrective waves are minor so it is going to get emotional once we hit the resistance of the current wave. Once all the minor waves complete it equals a Major wave once that occurs that is where the next big move will come from.
Happy Trading,
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