Just a comment cleaner and a few charts for you to keep on watch. We've obviously had an interesting week so far, and I'm sure we're in for more surprises as the next three trading days unfold. With various EW counts, DM alerts and cycle dates coming up shortly things should stay interesting. For me, at least, we're in one of those places on the charts where the trade is not so clear, and not so extreme you can almost write the next chapter in your sleep, so caution is warranted in either direction. If you're not seeing a solid case for a trade, the best advice is to SOH and wait until a lightbulb goes off in your head. Both longs and shorts have been battered enough that this should be second nature to everyone, but I just want to urge you to be careful. Many indicators "look" like they're in oversold territory, but they also looked like they were in overbought territory for the better part of 2009 and that actually caught many shorts unprepared. This works both ways, so if you're a knife catcher make sure you have a well defined trade signal, target and exit plan- the same of course, goes for shorts.
I have a few charts to share tonight- several regarding the tech sector. Osi and I both came up with a possible Gann cycle target of 9/8/10 last evening, and what's interesting about that date is: the market will be closed for the Labor Day holiday, so although when watching those cycle dates you want to consider +/- 2-3 days on either side, this will be close to the time the "big boys" bring their toys home from the Hamptons and start the real shenanigans. Anyway- as we get closer to that time frame we'll study the cycles more closely and see what we can zero in on to our advantage. Below you'll also see Osi's Gann calculations for price on the SPY.
See you all in the morning! Oh wait! It IS morning already and my sleep cycle is so messed up I'm a walking zombie. Good trading to my fellow zombies on Wednesday!
 |  |
 |  |
 |  |
Osi’s Gann Calculations for possible price targets
