I think we’re headed to 795 eventually, but possibly to 702 before that and here’s why:
1 year fib:
The 1 year fib has a trend line that will be meeting at the 795 area soon. Also the fibs line up very nicely with the current movement down towards an eventual 600 bottom from that 795 peak.
6 month fib:
If we try our best to count this as a 5 wave up on the 3 wave of the 4 of 5 wave, then we get the numbers in the pink box. This points more towards:
666-758
758-702
702-795
10day fib:
this leads me to believe there are a number of areas that will hit short term while heading lower to 702, but an important thing to note is that this 771 area looks like it’ll hit no matter what, so we’ll either head higher now, or hit that 771 point in the very near future. So if we head lower to 702 from here, that is a GOOD sign to know that the 4 of 5 is not over. This also makes me wonder if a correction is at hand in the next day or two to throw some people off.
WFC and BAC:
BAC and WFC both have room left run upwards. I think we’ll at least hit that 50ma mark, and possibly go above it if we’re headed to 795. Need to watch the banks carefully to see where we could head. Until we hit that 50ma, which is also sitting near fibs, I don’t think the run up will be over.
Conclusion:
I say we head lower at the open on Monday. We MAY see a correction, but I think we’ll see 732 minimum first, then 713, then 702. From there we’ll see 795, which may be just as fierce as the 1 wave up has been. If we head higher, I’m just going to load up more on puts, because the fall is going to happen with 771 being the absolute highest we can go.
April or May SPY puts are a good idea here, there isn’t much up room short term and the downside is a lot larger.
Woo,
Please clarify, you say 771 is the highest we go & also that we’ll see 795?
Thanks
he means 771 is the furthest we can go before a correction towards 700. Then he is thinking we move from 700 to 800 before the wave is over.
Woo thank you for your hard work…there are SO many of us who really really appreciate it…
I agree with that. I put alot of faith in what Woo has to say. I bought FAZ last week at $50 and did so without Woo on the board that day. I questioned the decision at the time, strictly due to Woo’s guidance. It turned out to be a premature entry. The good news……I stand ready to triple down on my position should we head higher on Monday. Thanks again Woo!
The accepted view currently on this site is that we are in wave 4 of primary wave 5 (4.5). So if we head to a low of 700, that wouldn’t matched the wave 3 lows of 666. Maybe I’m just confused from the article…
Corey from Afraid to Trade is speculating about this being the Big 3…not 5…interesting bearish outlook.
2 of 5′s and 4 of 5′s behave in a 3 wave fashion.
Therefore if we were to drop to 700′s, that would be the end of the 2 of 3, and then the 3 of 3 would finish at 795, and then we’d head south to 600.
Of course this is all subject to change, but we’ll get a better read of the market as the days progress. remember this is all speculation, based on educated guesses. it’s not a tell all chart.
Thanks for your concise conclusion…hoping for HP/HP (High Probability/High PayOff) trades..
Nice work Woo. I’m in the camp of a zig-zag or 5-3-5 to 771 to 800 range. As for the drop on Monday, we have formed that familiar double top, but the indicators are not quite ready. Monday afternoon or tuesday maybe. The VIX has to get an E touch if a falling wedge first. IMVHO. I’m gonna guess the double top comes after the fall to 731 range at the upper predicted levels. I appreciate your post. you do excellent work. The question of P1 or P2 has to come inot question with every call now IMO also.
Woo – will you please post public charts on stockcharts. It would be helpful. Thx.
sure. let me figure this out.
i agree that we have to watch carefully. one important thing to note is that this 1 of 5 wave down didn’t retrace till the 2 of wave hit. there is the possibility that this 4 wave doesn’t retrace at all till it’s not just done.
based on the trend lines, i’m thinking that 795 will hit though. if it hits, i’m saying that 795 the 4 of 5 has ended.
have to also watch carefully in case we are just headed higher and higher and higher and the primary waves are completely over for the downside. will let you guys know if at any point i start leaning towards that conclusion.
Yes, I can’t even tell you wonderful men how much you are all appreciated!
hello Woo and welcome.
Which strike for the May puts do you like?