Wow! what a day for the markets. The S&P broke support at 1040. The market is in the early stages of the third wave. The downtrend has a high probability of continuing its downtrend. The next support level is around 900. As mentioned previously, the third wave is the most violent but if you are trading with the trend you can make a lot of money. The 4th wave will be an "up" wave but you have to be alert to be able to trade it. It will also be powerful because it will cause a lot of shortsellers to cover their shorts. You can look at the S&P chart at www.stockcharts.com/ Look at the daily chart and it clearly shows the direction of the market.
I continue to be short the market.
Most people buy a stock and hold on to it. I don't trade a particular stock but choose to buy and sell indexes, such as the
Dow, S&P, Nasdaq, and the Russell. You can short these indexes. The thing to remember about the Market is that it is a game (casino) and you must know how to play it. The guys on Wall Street know how and you must learn how to play in order to make money. Learn the rules!
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