5/3 – 3:20 p.m. New York time

I entered two positions today, a short bear position using options on SPY and a long bull position using shares on SPXU, which is an inverse fund with the same underlying as SPY, the S&P 500 index.

5/3 – 1:05 p.m. New York time

I have entered a bear-call-spread position on SPY after reworking my chart analysis. One problem with what I had before — and it is one that I have mentioned previously — is that the “feel” wasn’t right. The duration and span of the waves seemed somewhat inconsistent.

The new count considers the 3rd wave down of the Minuette degree to have begun on May 2. The Minuette is my preferred tell-tale for entering trades.

A 3rd wave at the Minuette degree is also a 3rd wave at the Minute degree, and indeed at the Primary degree, which is the level that began its 1st wave down on Jan. 26, kicking off the bear market.

Here is my reworked chart, covering 15 days with 30-minute bars:

5/3 – 11 a.m. New York time

My goal today will be to find a re-entry point into the large exchange-traded funds, SPY foremost, but others as well. No guarantees of success of course. As thte old market wisdom has it, “When in doubt, stay out.”

By Tim Bovee, Portland, Oregon, May 3, 2018

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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