What a nice day it turned out to be.

As expected in the previous post, there was a nice short entry and the decline was swift and ruthless. Actually, as shown in the chart, the Shortsale signal came in late yesterday's session. Anyway, we entered the trade soon after the opening for a nice down trip.

But just as cautioned in earlier post, it turned out to be a V-shaped Shortsale day. On a shortsale day, this kind of behaviour is telling us that the buyers are stepping in. Biggies are changing their portfolios whatever it may be. For a swing trader, it says tomorrow is important. heehe everyday is important. If there is just a small decline in the earlier session and the prices break out to the upside, then it is a Long entry. If not, .. yes, it is still in the down trend.

Tomorrow: BUY day

End of Day signal says there is a resistance. So look for an early decline, perhaps a small one, which can be another LONG entry.

Well, we don't guess tops and bottoms. Let the market decide. The Long entry at 10850 still holds. 30min CCI is around Zero line. If it penetrates north, a BUY day will be in action. Otherwise, CCI Zero Line Rejection will give us a nice short entry.

DOW: round trip day

BUY signal on the 6th June delivered 100+ points. But it did not last long. CCI rejection at +100 level gave a reverse signal, with a SHORT confirmation at 11000 area when CCI crossed under CCIMA (the red line).

This morning, the futures were traded below 10900 level, which was -100 points after the SHORT signal.

Today is Shortsale day. In the downtrend, the only thing to be cautious is V-shaped shortsale day. Otherwise, look for a SHORT entry with a view to cover tomorrow, Friday when the prices hit a new low.

Dow has fallen 700 points

Today marks the completion of downward Wolfe Waves. As shown in the above chart, Dow has fallen from the highs of 11670 to the lows of 10926. As we stated in the earlier post, Dow actually broke 11000 barrier.

Our system is reacting well to this week's sell-off. We have more confidence in the system than before. By the way, we will not sell our system. It is a discretionary system and can not be automated.

We wish everybody a successful trading career.