Live: Tuesday, June 12, 2018

11:25 a.m. New York time

I exited my options positions on SPY yesterday, and today I’m looking at strategies for re-entering. First and foremost, Elliott wave analysis of the chart, which covers 30 days with 30-minute bars.


As the look-ahead in the upper right shows, SPY is in a 3rd wave at the Submicro {-3} degree within a series of C waves at high degrees. That means thee is some work to be done, and re-entry won’t happen quickly.

The next move at the Submicro is a 4th wave correction to the downside, followed by a 5th wave up to the peak, completing the C waves up to the Subminuette{-1} degree, and possibly completing the 4th wave rising correction  in the Minuette degree, although as 4th waves have a tendency to do, it could well extend into a more complex pattern.

I’m not interesting in re-entering with a bear play until I see what happens after the completion of the higher degree C waves. If it extends I shall try to play the Subminuette. If the correction is over, then I shall hop aboard the Minuette degree 5th wave to the downside.

As always, the signals to sit up and take notice will come from the Fisher Transform. The daily chart is presently uptrending, as it has been since June 1, and the monthly chart is downtrending, as it has been since January. My practice is to trade in the direction of the monthly chart, while the daily chart, when it aligns with the monthly, tells me to reassess the Elliott wave analysis to determine if it is a favorable place to re-enter.

By Tim Bovee, Portland, Oregon, June 12, 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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