Sorry I haven't posted yet this week, but I've been extremely busy. I'll get right to it. My thoughts on Friday were wrong. It was apparent when we gapped up at the open. So the other options I had laid out on the table were now the ones to consider. I held my short positions from Friday and waited for a pullback to sell them. The pullback, as has been the case since March 6, never came. So now I will wait and add to them near SPX 930.
My current count (finally) fits great with what has unfolded in the last few weeks. The correction is nearing completion. We should move up from where we are now (910) to possibly test the highs from the other week. Once we peak near or over SPX 930 we will have one leg remaining, the C part down. I am targeting 850 for this right now.
The actions by the market over the past week is exactly why I always scale into and out of positions. No matter how confidant one is in their views, the market always seems to have its own ideas. By getting the general moves correct and scaling into and out of positions one can play without getting taken out. Staying in the game is the most important goal in trading.
Since I went about 50% short on Friday I have plenty of cash left to add to my position when I feel it has peaked. At this point I plan on going 100% short for parts/most of this C down.
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