The developments of the last 2 trading days make me consider the whole rise from the post crash bottom to the last week's high as a W2 Kane ABCD:





Timewise it doesn't look good because it rarely happens in a zigzag that CD leg lasts 80 times longer that AB leg. But if it comes to proportions - it's almost perfect: AB and CD legs are nearly equal and whole ABCD retraces between .685 and .786 of the preceding leg down from the top.

Initially I thought that whole zigzag should finish at May 11th high. Now I see that high as a C point of a W4 correction in the CD leg:





The behaviour of the market in the next couple of days should help us jugde whether this interpretation is correct. This is rather important because in such case we should expect a drop to at least 1020 (1.272 external retracement of the ABCD) and probably much lower if W3 down has just started.

Originally posted by jimkane

Now I hear only naked shorting will be banned in Germany. You mean naked short selling is okay right now??? I thought it was banned everywhere. It was okay? That is insane.

So this is the reason why German futures are holding so surprisingly well today! Looks like they had a lot of naked shorts in the market...

... German futures are holding so surprisingly well today...

So far they dropped just 0.5% from today's high whereas ES about 2%. Usually they both move head to head

in a sense, it was not a choice.... if i honor my work, then i am FORCED BY THE GEOMETRY to abandon my GLD short....

Great exit, roofer. Gold is just going nuts. Up 8 bucks straight up.

Originally posted by jarek

...Looks like 1.272 ABCD is the name of the game for today...

A small change in repertoire to .382 EXP ABCD:





Time to move away from this bold ML one way or the other!

Look at gold!

Holy crap! Look at gold!

GLD almost 120! What a great exit, roofer. I knew gold was ready to pop. Right off my key higher timeframe area from this AM.

It took just 11 minutes for this .382 EXP ABCD to take out the swing low...

I'm missing something here. At 14:00 on the dot both gold and the DX exploded. They usually move inverse lockstep. That kind of a move usually only happens when there is panic. What happened?

I suspect a big run up in GLOBEX and a huge gap up over that line. We'll see. The weekends are getting longer and longer as the inevitable blowup gets closer.