To: Long-term, Ex Bear; Traders, Ex Bear
Subject: 1-9-08
Tuesday,
January 9, 2008
Third Diagonal II confirms an
explosive upside for the Dow
The diagonal triangle, coiling pattern remains very much in play. In the
stylized version below you see how the coiling has become skewed to the
downside in the aqua dotted line….nevertheless the next big move is up big ,
lasting 9-10 days to complete wave 3 of the diagonal triangle. Afterwards we drop back near
the current levels, before beginning the Spike. As you can see this is a very
volatile pattern, whether you are long or short you’re bound to be on the wrong
side of the market at some point.
In the
actual Dow Chart, the third Diag II indicates this will be a very powerful move,
since 2 or more compound the violence of the subsequent move. The last candle is
wave iv, meaning ~ 2 hours before we start back up.
Eduardo Mirahyes
“Opportunistically timed investments
that maximize wealth”