This is how I see the potential bearish ABCD Jim mentioned in his last post on Friday:





It was rather too big for a W4 of the first move down off the big bearish ABCD from the beginning of the May. But it could have been a big W2 of that move, in which case we would sit just in front of Wave 3 of 3 down.

On the other hand if the whole move off the big bearish ABCD was already finished on May 25th, we may have the second setup Jim pointed out:





In this case we should expect a smaller W3 up :-)

Either way this is shaping up to be a volatile week.

Great work, jarek, those charts show what I was saying exactly.

As I mentioned in my last commentary, the What's New section, and on the books and eArticles pages, I am going to try the new 'market only and fun' week for me. I haven't decided if I will post in here or not yet. If I do, I may get sucked in, and I'm trying to put less pressure on myself. I'll surely watch and read what you guys post. So, we'll see, but if I don't post, that's why.

jim-have a good time.....i know i trade better and my sense of humor returns after i go do something else...my goal is always to maximize my return when i am in the trading chair so that i can be in the market as little as possible....

thursday/friday action had most of my thoughts on trading .886 gap so i am adding a few more charts here to those posted in last weeks charts

we know in advance a simple thing that few traders know.. that a gap on the 5 min chart that stays open for the first bar sends the computers searching for a way to hit a.886 of a previous pivot.

we know in advance a simple thing that all traders know... gapsthat are clear to all lead to trend days...

we know in advance that the most perfect setups can also be perfect hooks....

we know in advance that abcd's are continuation signals...


when i launch a trade i ask each and every time''does this make sense?'' in terms of my stack of charts.EVERY time i see an abcd, i think trend continues.. if it is against my trade i tighten stop... if it is right after a perfect setup, i think hook..day tradingGS A NUMBER OF YEARS AGO WAS WHERE I DISCOVERED THE CONNECTION OF THE GAP AND .886....it is good to see the game goes on... in trading .886 on gap i am always aware of the most extreme possibility...

Thanks Jarek & roofer for the great charts & thoughts.

Al Kamego

Kane DT ABCD segue into Kane 4 PCP ABCD.

Al Kamego

al-you are welcome.. i continue to believe that the most important thing i did here this year was give the april 12th warning based on the cycle work i follow... thou it was not perfect, the market as measured by the indexes went up a few more percentage points, it gave any investors here plenty of time to exit... again the move from feb into april high was forcasts to be the most relentless up.....interestingly, the move off the april high is forcast to be the biggest hit down for this year... all the way into july 3rd low...even the trader terry laundry, who is well known for his own theoretical construct, having been shown the exact forcast chart that i have, said at the beginning of one of his audio presentations that '' a trader joe had shown him the best cycle work he had ever seen''that is the work i shared here, based on my friend joed's generosity....

since the inmates are running the asylum in jim's absence, i invite traders to post the gorgeous short re-entry this morning based on two predefined trade setups in AAPL.

We have a clear winner between the two ABCDs with the downsloping set gaining in importance after the reversal at its division line today:




Bears have now one of their biggest opportunities in months. If they don't use it, they might be severly punished.

Originally posted by roofer

since the inmates are running the asylum in jim's absence, i invite traders to post the gorgeous short re-entry this morning based on two predefined trade setups in AAPL.

Despite being an ideal .886 after the gap it was also a .382/.447 Kane ABCD:





Amazing how often different methodologies point to the same trades...

Here is my two cents.

Al Kamego

Here is an interesting update of my chart above:





Time to decide - W3 up or bearish ABCD?