Wednesday 6/30/10 wrap up

This down move does, in fact, look like it's extending.  An extended version of the Elliott count would look as below.  If we are not extending, then today's action would have to be read as finishing up of the 5th wave as per yesterday's chart.

The Sell line continues to strengthen in the Buy/Sell Vindicator so the down trend does net yet appear to be losing steam.  The 30 minute V Stoch  offered a short entry signal today which would have been profitable into the close.  It had been moving up since 11 AM yesterday and tagged the overbought line and started rolling over about noon today. 

On the trendline/oscillator system prices are well below the down trend line and the oscillator is pegged to the bottom of it's range, no sign as of yet of any counter trend rally.

One of the advantages of trading as a sideline as opposed to trading for a living is the ability to sit things out at times without a lot of pressure to perform.  That's what I've been doing since being stopped out yesterday, mainly to wait for a (hopefully) high probability entry point.   Would like to see a little bit stronger counter trend rally then what we had today to consider a short trade, or, depending on the situation, a long entry.

A final note: my old trading approach calls for stop and REVERSE rather than simple stop losses, i.e. in the case yesterday when stopped out of the long at ES 1053 the order would have been for a quantity twice that of the long position with the result of being short at ES 1053.  On the initial trade I decided to ignore that rule because it can and will lead to whipsaw situations, which would have been a poor way to start things off.  As they say, hindsight is 20/20 and it obviously was the wrong decision.
I do plan a detailed explanation of the system, I will try to get something put together this weekend, may not be comprehensive but will try to provide the essentials and fill out the finer points over time.