Options

I have been showing Option 1 since it is my preferred count. But Option 2 is still in the mix. I don't like it, I don't find the truncated leading diagonal compelling, but it is possible. I am cognizant of this option, even though it is not my preferred. I know most of you probably are as well, but I just wanted to be more explicit regarding that this is still a very possible option.

Even though Option 1 is still my preferred, there are two things that I read this weekend that is giving a little more weight to Option 2. First, this interview with Robin Griffiths. This is an extremely good interview and worth 20 minutes of your time. Near the end of the interview he talks about July 26 being a turn date for the current rally. If this is right, it fits with a more extended rally corresponding to an LD retrace. Second, Stormchaser has made several very good and relevant observations regarding trends on several different indices: here

Just letting you know what I am seeing. I am not doing anything at this point for Option 2. But if we get to 1110 and we see no weakness, I would be inclined to hedge long with some dry powder. I probably won't get too cute with it though (I won't cover short, just add some small hedges), because I do think the primary trend is down. And I will not be shaken out of my position nor do I have any interest in giving up my position.