How much upside after Ben cuts?

[trader123abc]

Landis82

Let me clarify . . .

The correction of Wave 1 ( this morning's gap up ) was 38 points.
( ie. Wave 2 was 38 points ).

After the late afternoon highs up around 954.75, the followers of EWT were looking for a Wave 4 pullback . . . We got that down to 926 after the FED announced its rate-cut and it so happened to be a fib ratio of 78.6 of the Wave 2 pullback of 38 points from this morning.

From the end of Wave 4 at 926 ES, you could then project new highs for the day by using the length of Wave 1 from this morning, which was a little shy of 50 handles, targeting 973.75 on the ES.

It's simply extensive use of fib ratio's and comparing legs ( waves ).
I'm sorry if I wasn't that clear initially. Just not enough time to post.

See chart below

Thanks, makes sense now!

 

[stock_trad3r]

Quote from IShopAtPublix:

My advice to stock_trad3r is as follows:

1)Get some books on technical analysis. Technical analysis teaches people to rely on objective things instead of personal opinions. When someone says RIMM should go to 70 and above when it is currently trading in the high 40s one is expressing AN OPINION. For RIMM to go to 70 there should be CONTINUOUS buying of that stock by OTHER people and OTHER people may have opinions VASTLY different from yours. Looking at a chart grounds you to reality.

2) Stop being a cheerleader for US economy. US economy long term is incredibly flawed for several reasons: Peak OIl (long term)
2. Imperial delusions 3. Financial alchemy. When college students come out of college loaded with student debt (and some credit cards) how are they supposed to be engines that power the economy?

3)Don't trade stocks, either trade options, futures, forex. It takes significantly more skill to trade either of the aforementioned instruments but the profit potential is far superior to straight stock trading.

I appreciate the help, but there is a method to my madness.

I disagree with you regarding the economy and consumer debt though. College students are maxed-out out on debt, but when they get jobs (including low paying service sector jobs) their credit will be raised and they can continue to accumulate debt, which helps the economy grow. The penny pinching days of the pre-Reagan era are over.

This is why a buy and hold and 'buy on the dip' strategy has worked so well since 1982 and will continue to do so.