We appear to be on schedule for the 1140 push. Options expiration is this week and will probably expire most Put options worthless........yet again. I think everyone knows what is around the corner, but making money has been quite difficult.
Once again I am posting hourly charts over a 90 day period. I do chart on smaller time frames, but posting the smaller time frames confuses most readers. If you look at the chart from the start of July, you can get a feel for the "energy" involved in every swing. These later swings are dissipating the last of the energy for this run.
The last of the push up will probably occur this week. I have two counts at the moment. One is an Ending Diagonal, and the other is a standard ABC corrective wave. Real confirmation of these counts only exists on the bottom trendline breaks. When this pattern completes it should be quite obvious.
I will hesitate in the 1040 to 1080 range because another count could turn this move from the July bottom into a zig-zag. I will be buying September Puts on Triple leveraged Bulls this week. I am hoping to get them cheap with the spike into the 1140 range. My friend is looking for SPY puts with a strike of $110 in the $0.50 area, near the spike. A falling VIX into Monday and Tuesday should make for some good options deals.
Some people ask why I am so Bearish. One reason really, its our insoluable interest problem. Too much debt and not enough income. We are at or nearing the location where we can't even attack the principle of our debt. The banks are leveraged to the hilt with depreciating assets, thus increasing their leverage arms and forcing the collapse of available credit. (residential and commercial real estate)
If you believe our Government creates our money, you are very wrong. Our banks do. They create money out of thin air, using debt, and the "promise to repay." If you care to understand the truth, please watch the 5 video part series:
http://www.youtube.com/watch?v=NiENaQMwzDY
No comments:
Post a Comment