.......................................Buckle Up!
We've gone parabolic on the downside. I missed a brief opportunity to buy XAU Puts after 8 am PST, expecting a little more upside than we got, but this is the nasty parabolic Elliot Wave C short term downcycle, so this plunge isn't too surprising, and, short lived rallies are typical of downcycles. I'll look to get my shorts on (buy XAU Puts) on strength.
posted by Joe Ferrazzano at
10:27 AM
6 Comments:
How many days can this C down stay parabolic? Is this likely to go 4 or 5 days?
By
Jeff, at 11:30 AM
Jeff,
The parabolic EW C ST downcycle really began yesterday (when the XAU fell about -2.40% from session high in plus territory to it's session low) and could last a few more days. Ciao
By
Joe Ferrazzano, at 2:18 PM
Jeff,
To clarify for everyone, and I'm sure you understand, the parabolic decline could end in a day or two, then there could be a few days where the EW C ST downcycle slows dramatically. It's difficult to say exactly how it will unfold. It's very similar to upcycle's after a parabolic sell signal, when the parabolic rise flattens out there's often a few more days of modest upside.
By
Joe Ferrazzano, at 2:28 PM
Thanks, Joe. Yes, I understand - I am trying to predict when the parabolic sell signal will occur - although I'll wait to closer to the trendline signal before buying, I think I'll use the parabolic break to sell my PAAS and NEM puts, and cover the GG calls I wrote a couple weeks ago.
Normally, I use the long-intermediate cycle and buy longer term options, and then use the monthlies to buy and sell a small portion, and to hedge and hopefully make a little bit, but this time I felt very confident of a monthly top lower than POG $549, so I bought a bunch of puts, more than offsetting my longer term calls.
By
Jeff, at 4:31 PM
Jeff,
You obviously meant parabolic trendline buy signal, or, maybe just breaking the parabolic downtrend line and not waiting for the 2% upside follow through/parabolic buy signal. I mentioned it so people don't get confused, I know you understand. Ciao
By
Joe Ferrazzano, at 11:40 PM
Yes, that's what I meant, but was thinking in terms of sell because they are puts that I would sell.
By
Jeff, at 6:07 AM
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