Morning Update: Will we see 3894 for the "a-wave" ?This morning futures are flat, to higher, as it continues carving out what I'm counting as just the a-wave. I would like to see this a-wave get to at least 3894 before the corresponding b-wave starts. As you can see from the below, I am expecting this larger b-wave pattern to ultimately reconcile in the 3947-4036 area for just a standard retracement b-wave.
Once we get into the a-wave target box we will have a 3-wave retracement. Although I am counting this as just the a-wave, technically we could complete there. Again I'll remind you to know you're stop levels. As of now, nothing price has done is extraordinary, so therefore I have no reason to conclude we will not retrace in a standard fashion which is price in the minimum area of 3947 to 4036 , with a maximum of 4100.
Lastly I will be closing my 4100-4200 short calls today as they are pretty much worthless and provide no hedge. I will restrike higher if appropriate.
House Keeping: My family and I will be spending Christmas with our son who recently moved to Kansas City, MO. We leave tomorrow and return to Orlando on January 29th. Therefore, tomorrow's morning update will be the last post till around 12/30 while we celebrate the holidays with family.
Best to all,
Chris
