Target buy zone hit nicely on 12/07/2018. Good work everybody! I sold the puts for a nice profit and Then I flipped and bought calls. I'm looking for a short term bounce up. I'm looking at the Cypher pattern completion up at the sell zone. It is the lowest price of the 3 possible patterns at this point. Cypher, Shark, and Deep Shark, shown by the purple, blue and green patterns. Also note a possible diamond reversal pattern that may be developing shown in yellow. these can "wind up" a lot of energy for a quick and sudden release of energy that may make the targets hit faster than most would expect!
However- please notice how deep the 12/07/2018 low was where I labeled "scary" in yellow. That is very deep. In fact that may be a clue to a deeper retracement in the near future. Possibly a deep crab pattern! So I'm not so sure about a "Santa Rally" this year. That's a pretty deep projected down move to the 250 zone if that happens! Gotta watch the Nov 23 low at all times. If it cracks, This Old Fart is gonna sell!
Until then lets see if these short term calls can make some money on a bounce in the next day or two. Lots of fear in the market, it might need a day or 2 to relieve some fear indicators.... then, just to dump again?
However- please notice how deep the 12/07/2018 low was where I labeled "scary" in yellow. That is very deep. In fact that may be a clue to a deeper retracement in the near future. Possibly a deep crab pattern! So I'm not so sure about a "Santa Rally" this year. That's a pretty deep projected down move to the 250 zone if that happens! Gotta watch the Nov 23 low at all times. If it cracks, This Old Fart is gonna sell!
Until then lets see if these short term calls can make some money on a bounce in the next day or two. Lots of fear in the market, it might need a day or 2 to relieve some fear indicators.... then, just to dump again?