Wednesday, October 17, 2012

Charts 10-17

We continue to ratchet up in a wave 3, only 25 pts now away from the proposed 1486 top next week.  This is a wave 3 so far without any huge days, no 30-handle gap and go action here, just a non-stop day to day grind up.

The SPY calls I dumped on Monday, looking for a pullback, are now at least a triple for the buyer, possibly a 5-bagger later this week.  Just being careful with the short-term options.  Flat and patient to wait for the technical setup next week.

In the 1500+ blow-out scenario, the current waves are only forming a wave 1 for a much larger sequence ... still very possible ... although it would be very tasty to dump from 1486 straight to 1400, and to leave the bull market crowd in the lurch.

I'd very much like to see the VIX drop below 13 next week as well, to give us a new low and a possible buy signal on the daily Bollinger.  It would also gut UVXY and create a good entry for swing longs.

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