Wyckoff analysts will immediately see the possibility that the present wave (74 days) may be what Wyckoff called “UTAD” or upthrust after disstribution. And that is entirely possible. Or it might be just an everyday blow-off. Whatever it is it appears to us to be laden with danger and volatility. Of course the talking heads and pundits have been howling for a bear market or severe correction during this entire episode.
In fact of course no one knows where it goes from here. But we do know this: when it goes it will go so fast that only New York trading desks will be able to get a position.
An E&M investor might be able to take some profits here and buy a call or a straddle. We don’t advise clients on these matters–you would have to consult with your broker if you were going to do that–or consult with Larry McMillan at optionstrategist.com.
As for ourselves we will sit on our vey small positions and wait to see what happens.
Shortly we will publish recommended stops (and pacific islands for refuge).