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... monicadern

Red, I'm in it for the long haul and will stay short. That's why I didn't try to catch the top. I have been losing money for months but I truly believed I would be OK and hopefully now I will be.

... Red Dragon Leo

Ain't that the truth girl? Stay short if you're already there. I'll look for a bounce tomorrow to join you.

... monicadern

Don't worry Red – it's never too late and I'm sure you will get your chance. I think the only thing I have learned from the stock market is to expect the unexpected!

... dark1p

OK, Red, I'm a jerk. I was on some other sites earlier and got peeved because I'm a long way from convinced that the prevailing count is correct….and I go and pop off on Anna's blog. Then I come here and see that your count is matching up to the other guys I saw! I'm sorry, I didn't mean to sound like such an asshole. And I certainly didn't have you in mind when I posted.

Man, I should keep my big mouth shut sometimes…

... Red Dragon Leo

We are going down for all of next week, and possibly into opx the following week. I'm getting short tomorrow at the levels I stated, and staying short until next Friday. I'll re-evaluate the position then, based on what levels we hit.

... BloodWine

Also, I think you and talked about the FXI long to about 40 last week. If we get a bounce in FXI tomorrow, that should be a sweet short. Or FXP if you like the inverse leverage. FXI could make a quick trip to 35.50 with no support.

g'nite

... Red Dragon Leo

Please do… (and let's just hope for a small bounce tomorrow to get short on)

... Captain_Koons

Another reason for the sell of could be due to a hedge fund that imploded. One of my associates heard some speculation of this going around the pits today.

I will post if a get any additional info on the story.

... BloodWine

Great Post Red!

I closed the day 87% in cash and plan to get in short again tomorrow. I hope we do get at least a little bounce!

BTW – there were 4 weird after hours ticks on the SPY 1min up to 109.88. Odds are we run in the direction of those ticks (up) at least in the early part of the day. Again… just odds, doesn't mean much.

Again… great post! Thanks for sharing your thoughts

Oh and LOVE the panic button – hahaha

... Red Dragon Leo

The wave 2 that is coming is a smaller wave 2 inside a larger wave 3, which should have 5 smaller waves inside it. I think the larger wave 2 is over, and we just had a smaller wave 1 inside a larger wave 3.