Is the move up that began on Friday a final acceleration to the 1330 area mentioned here couple of times? Or is it a start of something even bigger to the upside to finally convince everybody that this thing is never ever going to drop again? We'll have to wait to know the answer to this question. My personal opinion is closer to the second alternative, but of course I might be wrong. Some people say that the drop from May 2008 to the final 2009 bottom was an extended 5th wave. Such waves are usually fully retraced, and in such case the upper ML of the recent set needs to be met:

i thought too that this geometry in AAPL holds out the potential for a surprise...

i know INTC usually leads to the downside if the geometry is there.... my favorite trader setup something familiar.... now i''ll await my fate

Originally posted by jarek

It's so well corrected, that in fact it could accelerate to the upside now

Looks like it was not that well corrected at all. I'm looking now at the next setup:

The lines are pretty well respected, but this reminds now a TL creep. Will it break to the downside as in good, old times?

...and the answer is yes and no. It broke to the downside, but in what now looks as a fake breakout for a 100% retracement of the first leg off this ABCD:

I like when it comes back to test the lines one more time after a return from a fake breakout:




Now it's either decisively up, or Geo's correction scenario could come into play

j-you are the master at showing jim's work.... i am driven by my own demons to be a short seller.... and i know the geometry so well and what the gann traders are thinking so well that i can pull it off....i do not suggest anyone do what i do....i know well that life would be easier if i joined in pushing the trend......i have enough. i don't need more.. my friend joed said to me that if i don't find a higher purpose soon in trading.. i'd better stop.

j- as you know, the easiest thing for me to do when i think a pullback is close, is to look at the 60 min charts of the dow stocks...here are a few charts of the remainig dow stocks that have not already turned down... conbined with the chart of INTC, they all have the geometry individually of a pullback.....

i just think the shorts have been squeezed out of the market.... the geometry of a pullback is there....there has been no ebb and flow to position traders on both sides.... i think we are at inflection point of something similar to feb 07... and i am thinking not based on some theory, but on the geometry.

rat 89 will remember this one....it is a rare day when i will short into oversold.... but the pattern repeats over and over.....rapids and waterfall... the key is the flattening right before price goes..under the cover of opex, the computers were using the patterns to get price to the correct strike.... something else.... i feel a wave four triangle of some degree just ahead... the down in many stocks can be seen as the ab leg of abcd's that i think the c will setup just as the triangle leg is set to go....