Hi Jim,

Thanks for opening this Forum to your students and giving us an opportunity to show our charts and share our ideas.

Here is a chart of todays ABCD's in the russell. I will post a context chart later. Today was one of those days where the market changes direction on Jim's unique Fib numbers, Had you been trading with standard fib numbers you may not have noticed these PTA's. Is it me or is .564 becomming more and more prevalent?

Tommorrow should be interesting. Will we have another leg up off of the larger ABCD? The next leg be the CD leg to the median line? Or will it continue to roll over? What clues is the market giving us?







Today's trade was a lightning trade, thanks George for the setup, and Jim for the fib number. I have also included my feeble attempt at being a elliottian





What are you looking at Sensei?

I see a classic first thrust up off that ABCD, and as deep of a pullback as I like to see for a 'wave 2' here. Notice the 5 waves on the first thrust, and the clear impulsive look. Not much can be said about the pullback. That upper // was just a gift from the trading gods today. I'm very wary here, especially with the holiday trading. If I'm not seeing great action early on I will figure it's over until after the holiday. It may be dicey until after the new year, but then those commercials and their massive short position, and the market chock full of bulls, may kick in and this thing may get slaughtered. In summation, I'm getting very cautious and staying cautious unless the action is clear.

On the other hand, it may be a Double Top (DT) ABCD here as 'wave 2', right at a .685, .786, and 1.618 overlap, with a ML lower // right there, too. The set is off the last move down (from that small ABCD around 13:00 on Monday to the bottom of the move, 'locked' at the A point of the DT ABCD). Very critical spot.

Another scenario I am watching is a 'retest' of that bigger TD ABCD lower // in the 83-84 area. I am also thinking possible abcde here, down to perhaps the 1.272 area. Do some work for that one, as there are some things coming together for that scenario. I just look over the possibilities and come up with premises and ways to work them, depending on how the price action unfolds.

How about a D=B or EX pattern ? just in case the current TD doesn't hold.
Many possible paths there are.

T,

The reason I didn't mention those are first, I didn't want to show so many scenarios that the concept of looking at multiple scenarioes gets overwhelming for many in here (even though I do look at as many as I can think of), and second, one of the two I haven't shared outside of mentorships, not even in here.

Notice how this did shoot right for that lower // and bounce strongly, just about 7 points? From yesterday: "Another scenario I am watching is a 'retest' of that bigger TD ABCD lower // in the 83-84 area." It reversed at 83.30. At that point it was about the price action for me.

Now as T says, this may be headed lower to test the B point, or into an EXP ABCD. I suspect this market is going to get hammered once the year end game playing is done, so lower areas are getting fleshed out on my charts, in case that does unfold. I just set up the areas, see how things unfold, and watch the price action clues at the areas that do get hit.

Since it is the holiday, and in the spirit of good will and sharing, I think that the EX pattern should be shared with this select group .

Happy Holidays Sensei, and all Kane Traders!!!

Oh, it isn't the EXP pattern I was talking about, it is one of four additional newer ones that I have worked up since I published the four 'new' ones. I thought about another book called Four Additional 'New' ABCD Pattern Variations, but my writing days are over. I show them to mentor students, but I'm not so sure I'm going to keep showing them. I have to leave some things for you guys to figure out on your own...

Happy New Year !!!

"As I wrap up I might want to mention that the year end is over, and given the massive short position held by the commercials and the overly ripe nature of this cyclical bull market, well, I want to be on my toes. For what? Well, do you remember what happened when Y2K turned out to be nothing? Look at an intraday chart of the start of the new year, if you forgot. Maybe a lot of phony manipulation for bonuses, window dressing, and such was done, and now it's time to jump ship. Maybe not, but I'm ready for anything. I still can't find a single bear anywhere. I think it will be exciting trading regardless, but be wary until things 'shake out'. Happy New Year!"

Another good call Jim!!

thankyou duane i knew it was back there somewhere...