Quote from johnpinochet:
Landis,
I'm looking forward to your assessment after today, Thursday 12 July 2006.
When are you targeting the corrective phase? In any event, for those of us sitting on remarkable profits in our 401K's since October 2006, isn't it safe to say that the risk:reward ratio as of today favors cash, or at a minimum taking money off the table and perhaps an allocation shift?
Excellent work, by the way.
John
John, nothing has really changed.
Wave iii of Wave 5 appears to have peaked in the DJIA on the 16th, and a "corrective" (b) wave which zig-zagged upward into yesterday's DJI trade above 14,000 has been followed by a five-way (c) down of Wave iv into today's intra-day low at 13,823.93 which concludes (A) of Wave 4 down.
Since today's intra-day low, the DJI ( and the SPX ) have traced out yet another a-b-c "corrective" sequence back up into a larger (B) of Wave 4. This count will be deemed in effect unless the 13,922 wave iv peak is taken out in impulsive fashion.
Given today's close back above the key 13,875 level, one can give more weight to the case that Wave 4 ended this morning and that we have done i, an irregular ii, since this mornings low at 13,823.93 and are now in a iii of the final Wave 5 up.
I need to see more action tomorrow in order to confirm whether or not the last 30 minutes of today's session was indeed
impuslive wave action to the upside. As mentioned above, taking out 13,922 would put me into the camp that Wave 4 ended today, and that we will not see any further "choppy" corrective action in the Dow.
In any event, there will still be a Wave 5 rally to the upside.
Today's downside action has done nothing to negate that view.
More later.
