Two more trading days to go! And what a year it was. This year really proofed how powerful harmonic trading can be. From time to time, as you recall, I’ve pulled up a monthly chart, showing an 161.8%XA level for many years going back, and this year finally this target was reached. the High of the Year came in at 213.78, and we’ve had the 161.8%XA of the ’07 high to ’09 at 213.4 on our charts for several years.
The pullback in August was right into the 127%XA. Which I don’t see as far enough to be able to qualify for a probable new AB=CD leg higher. Which would require at least a 38.2% pullback. On a yearly chart, This year’s candle could be called a “hanging man” I guess. (I’m not to up to date with all the specific candlestick definitions). Therefore, for next year I could imagine we could see a steeper pullback, beyond this year’s pullback. But of course, pure speculation at this point.
We rarely see a continuation above a 161.8%XA level, without a significant pullback first. here’s the chart one more time :
Check how the 38.2%XA, is right inline with the “X” of the ’07 high!
Ok, enough longterm speculations.We only take it one day at a time.
I’m not forcing anymore trades the next day or two. Amazon was a killer. still have a small position 670 calls left. Glad to hear a few of you followed as of Monday.
I’ll resume the daily posts, including the optionflow reports again in the New year. And I’m working now on getting an auto-alert to tweet entry-alerts, based on the R&D, as discussed in last two posts.
Thank you guys! for the support, and feedback. And I wish you all a great, happy and healthy New Year. let’s make it happen!
Closing it out with the SPY completed 15min pattern at the 161.8%XA yesterday, as promised it went from the 127 up to the 161.8 within a penny or two.