Great day in the market if you are on the right side

What I love about the Elliott method is that it helps you pinpoint stages in the market where there are great risk/reward opportunities with good odds.

At 6:22 pm (Central European Time) today I posted a market update on the blog saying that we had a point in the market where the odds were great that the bounce would end. As it turned out this was the exact high of the day! At 7:52 pm (Central European Time) I posted on Twitter that the trade was working for us. The market then continued to fall and at the end, it went into a wave 2 bounce of small degree.

When the market went through the wave A high at 2639 it confirmed this wave count and I increased my short swing trade positions with a new bear put spread in the S&P 500 buying the 2620 put for April 6th and selling the 2570 put for the same date. That spread gained 70% in value into the close.

I am looking for the US equities to continue down tomorrow and if it breaks down through the last low at 2585 I will take some profits since that is the minimum requirement for completing the wave-v shown below.

As for my day trading, I had a good day too, I took a long from the wave (4) correction buying futures at 2660 and exiting at 2675. Then went short the futures from the small wave (2) bounce at 2666.75 and exited at 2655.

It is not every day that I end up with as good a record as today, that’s for sure!

As for Europe with the Eurostoxx 50, it should follow the US down tomorrow and show a lot of weakness in the wave-3 down shown below.

All in all, today was a really good day for all trading timeframes where I participate and tomorrow should see more downside all over the world.

Stay on the right side of the market!

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