Market update

I finally managed to get a great day on the short side of the equity market and it continues to fall. Since the last update I have ramped up my trading and the markets are conforming to the Elliott scenarios with the best odds.

The great thing about the Elliott method is that I don’t have to get each wave count exactly right but I do get exact levels where a wave count is wrong and thus it is very easy to close positions that are not working out.

As the market continues to offer more and more information I can update my alternatives and choose the ones with the best odds. Remember that trading is about going with the best odds and capture larger profits than your losses. When I created the best returns I only nailed about 25% of my trades.

The European equity markets have just motored through the bottoms that were established during February and at the beginning of March. This means that there are no obvious support levels to lean against. As I write in the get started guide I day trade the Eurostoxx 50 futures in Europe and the S&P 500 futures in the US. In these markets, I have received numerous setups on the short side during the past few days.

In my position trading, I have had long put spreads in the S&P 500 for a few days and more aggressive option strategies for the short side in a few stocks.

The chart below shows the best wave count for the Dow Jones Industrials index as it currently stands.

There is a more positive wave count alternative as the chart below shows but nonetheless, both counts have enabled me to stay on the short side during these great days!

Don’t miss the old documentary of the legendary trader Paul Tudor Jones!

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