To: Friend
Subject: by the way...
Original Email:
double top at the 50% retracement from the January top...we may have the beginning of the 3rd leg or the 1st leg of the final 5th down...Wont know for sure until key lows are taken out though. Watch that triangle chart I sent ya.
Friend's reply:
Yeah I see the DT on Jan and 50% retracement – so 5th down would give us new lows??? And 3rd would represent an up leg???
Response:
Looks like my thesis is playing out!
You are close. I don't know if the January top was the top to start the count from or if yesterday was the top, therefore today is either the start of wave 3 down (of the larger fifth wave that will bring us to new lows) which implies that the January decline was wave 1, or, an even bearisher count is that yesterday was the start of wave five down which would mean we are in wave one of five right now. That scenario means my triangle has played out and the end of the 4th wave correction was at yesterday's double top. It's just too early to tell. Either way, we are in what looks like a fifth wave down to new lows now. This will be confirmed with the prices I laid out on the triangle chart. The put call ratio once again was a huge help in calling this top.
This next low will be the one to buy.
Let me know if this chart looks screwed up...Chart is from Feb 8
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