Plan for Tomorrow (and Perhaps Further Out)

Ok, we have some inflation data coming in the morning, and that can be a market mover. The rubber band is very stretched right here. If data disappoints, the rubber band can break and I think the move to 3400 is possible. If data pleases, I think we can expect a real ripper. I am open to both. Given  what I saw today (such as the $VIX H&S, etc.), I favor the bullish view, and I have tried to tilt my positioning so that that outcome will be more profitable. But I should survive either outcome (lol watch us pin).

If we fail, I will just be basically looking for a more or less straight line to 3400. If we rip, I think the major low is probably in. If we get any traction to the upside at all, I doubt we’re going to stop. Sentiment is suicidal here and we shouldn’t be coming back to this for a long time. And if that’s right, here is what I would expect over the coming weeks/months.

If we take out this high (green arrow) and break these parallel rails to the upside:


Then I think we’re going to do this, and form an inverse:


Which may carry us back to the August high:


And after consolidating (for pink B), we very well may rip close to all-time highs like this:


This will clear up sentiment, clear up the messy structure, and all sorts of things. And if I’m right that this is all part of an even larger 3-wave structure, we still may see a yellow “c” next year. And the yellow “c” will probably take out these lows we’re at now, maybe even get us to that 3400. But sort of in a straight line, COVID crash-like. There is a precedent for a structure like this from the 1960s. Could be hella fun. Let’s see what we do tomorrow.

If you enjoyed this article and are not already a member, consider becoming one via Patreon for access to these articles in their entirety when they are first published, Discord chatroom access during the trading session and more.

And if you have a moment, please like and share this article on social media.
Become a patron at Patreon!