Wow! 33 days after. That's the Masonic #, like 33rd degree. Pope John Paul I was “killed” 33 day after taking office. The significance is the masons signaling that they are in control!
How's that for conspriacy. (I nearly believe it too)
Well, nothing is written in stone of course, as I originally thought that the 60 minute charts would have been rolling over today. That's why I guessed on Friday's post that it could have been a Black Monday.
So, it looks like I'm off a day. Regardless, I'd have too say that a minor wave 3 down, inside a larger wave 3 is going to be pretty powerful. The more wave 3's inside each other, the more powerful the move. Remember, we are also inside Primary Wave 3 (or C) down too!
I'm not an expert at EW, but I believe the wave 3's are commonly a percent of the wave 1's. Look at the last chart above as I show the 1.382%, 1.5%, and 1.618% predictions.
Crap – didn't do it right. Think I bought way to many contracts. Bought 175 contracts on the 106 puts and I don't know how to do it as one transaction. Can I call you Red? Email me at monicajlevine@gmail.com
Monica, it doesn't work like that. You will only paid the difference between the two, not equal amounts on them. You do a Vertical Put Spread, and it's all one transaction, with you only paying for the difference between the buy price of the 106, and the sell price of the 101.
Now look at the price of the 106 puts. As of now, (and of course they will change some by the time you read this), the 106 has a bid of $1.53 and ask of $1.55. The 101 has a bid of $0.44 and ask of $0.45.
You must buy the 106 at the ask price of $1.55, and sell the 101 at the bid price of $0.44, for a difference of $1.11. Now, if the spy goes down to 101 by the end of the week, then the 106 will have a actual value of $5.00 plus whatever time value is left too.
The 101 will only have the time value left, and the volitility, which is determined by the price of the VIX. It will increase the value of both the 106 and the 101. Anyway, if the 101 is worth $1.50 because of higher vix, and the 106 is worth $5.50 (just guessing here), then the difference to close the position is now $4.00.
You would have paid $1.11 for each contract and sold them for $4.00… not a bad return, huh?
“A typical Wave 3 exceeds Wave 1 by, at least, 1.618 times, or even more….”
The above is common on the net concerning EW.
so wave 1 went from about 1150 to 1070. Thats 80pts
so wave 3 should be 80 (wave 1) X 1.618 = 128 pts.
wave 2 ended 1105 and then wave 3 follows.
so 1105 – 128 = 977 !!!! bingo $$$$$….Oh joy!
Tony codero's blog in congurent with the reasoning on Leo's blog. He say's we are now in a little 2 within a big 3 down.
Wow! 33 days after. That's the Masonic #, like 33rd degree. Pope John Paul I was “killed” 33 day after taking office. The significance is the masons signaling that they are in control!
How's that for conspriacy. (I nearly believe it too)
Well, nothing is written in stone of course, as I originally thought that the 60 minute charts would have been rolling over today. That's why I guessed on Friday's post that it could have been a Black Monday.
So, it looks like I'm off a day. Regardless, I'd have too say that a minor wave 3 down, inside a larger wave 3 is going to be pretty powerful. The more wave 3's inside each other, the more powerful the move. Remember, we are also inside Primary Wave 3 (or C) down too!
I'm not an expert at EW, but I believe the wave 3's are commonly a percent of the wave 1's. Look at the last chart above as I show the 1.382%, 1.5%, and 1.618% predictions.
what are the approx odds of the $sp falling below the 200dma by friday or so?, now at 1018
This is your bounce. By tomorrow the 60 minute chart will be rolling over, so today's your lucky day!
I'm hoping for a bounce. that way feb puts get way cheaper. Also, the only ec. fig. this week is REtail sales thurs.
could be an excuse to tank the market
Crap – didn't do it right. Think I bought way to many contracts. Bought 175 contracts on the 106 puts and I don't know how to do it as one transaction. Can I call you Red? Email me at monicajlevine@gmail.com
Monica, it doesn't work like that. You will only paid the difference between the two, not equal amounts on them. You do a Vertical Put Spread, and it's all one transaction, with you only paying for the difference between the buy price of the 106, and the sell price of the 101.
K – I am getting ready to do this. 8K on the 106 and 8K on the 101. Wish me luck.
Look at this link..
http://bigcharts.marketwatch.com/quickchart/opt…
Now look at the price of the 106 puts. As of now, (and of course they will change some by the time you read this), the 106 has a bid of $1.53 and ask of $1.55. The 101 has a bid of $0.44 and ask of $0.45.
You must buy the 106 at the ask price of $1.55, and sell the 101 at the bid price of $0.44, for a difference of $1.11. Now, if the spy goes down to 101 by the end of the week, then the 106 will have a actual value of $5.00 plus whatever time value is left too.
The 101 will only have the time value left, and the volitility, which is determined by the price of the VIX. It will increase the value of both the 106 and the 101. Anyway, if the 101 is worth $1.50 because of higher vix, and the 106 is worth $5.50 (just guessing here), then the difference to close the position is now $4.00.
You would have paid $1.11 for each contract and sold them for $4.00… not a bad return, huh?