Since its initial publication in the late ’90s the Edwards&Magee website had not experienced a down day or problem until the last month when technical problems tied us up for a week or so. For these difficulties and inconveniences we offer our apologies. We believe that our technical problems are mostly resolved now.
It is a good time to tackle the problems offered by a psychoid market. And a psychoid national environment. Needless to say the latter buffets the former. But true to our philosophy and character we make all our decisions based on the chart. (More or Less.)
After a 17 day wavelet which pushed to a high of 3231 the SPX, today, took a 5%+ tumble (174 points) to 3011. The Dow was down over 1800 points or near 7%.
We could climb on a soapbox and claim to have predicted this–we did after all say in our later letters that extreme volatility would continue. But that would be tiresome if not tedious. The question now is to be or not to be — as what’s his name said. In this case you’re either in or out. You can of course diminish risk by only trading a minor tranche of your capital which is what we do for our accounts.
For right now the upward wave is probably broken and we will see choppy markets. We don’t see anything unusual about what is going dow. More abnormal which has become the abnormal normal.