Ewj: elliott wave

What goes UP has come DOWN :eek: .
This may be wave four of some degree which should end at end of wave four of a lesser degree, may be soon :) .

Buy the rumors. Sell the news.
Banks get an accounting boost
Rulesmakers set to ease rules on fair value accounting just in time for this month's first-quarter profit reports.
Colin Barr, senior writer
Last Updated: April 2, 2009: 12:36 PM ET
http://money.cnn.com/2009/04/02/news/fair.value.fortune/index.htm
 

Attachments

Market Sells Off on News that Bernie Sanders, the liberal democrat from Vermont wants to pass banking legislation that requires the FED to reveal who comes to the "discount" window.

This is a big NO NO.
:eek:
 
If that happens Mu, we should see the SPX retrace back down to 829.10 for .382 from the move up off yesterday's low at 3:15PM Eastern.

However, I wouldn't want to see it retrace anything more than .382 if I'm a Bull.

P.S. JP Morgan getting whacked and now $2 off the early session highs and now negative.

:)
 
Traded down to 83.60 SPY at 3:20PM eastern and held previous low at 83.51 just before 2PM.

Will the market hold that 83.60 SPY low in the last 40 minutes?
 
Quote from alphadriven:

Eric,
What do you mean by .5% risk?
More...

He is referring to the size of your positions, not the stop. I believe he said he'd short at 850 with a stop at 912. So, the risk for the trade is 62 ES points, 3100 per contract or $6.20 per share in the SPY.

In order to take this trade in the ES, you would need an account size of X x .005 = 3100

X = 3100/.005
X = 620000

You would need a $620,000 acct in order to only risk .5% of your equity. This trade is meant for weekly time frame traders and therefore has a large stop.

Since you can't trade the ES with less than one contract, you could Short the SPY and size your position accordingly.

30000 acct. .5% = 150 150/6.20stop =

You could short 24 shares of the SPY

Clear as mud?
 
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