No new trading signals for Wednesday.
Tuesday saw a big rally day, one that was described as possible in the forecast below. This makes Wednesday a pivotal day in a 1929-1987-2018 analogy published Monday by Robert Prechter of Elliott Wave International. As unlikely as it seems in light of the strong rally into the close, we should be aware of his potential scenario. If Wednesday begins or develops into a hard down session his 5-day crash forecast becomes credible enough to jump in mid-day and double up on the short side.
If nothing comes of it what could be lost pales in comparison to what could be gained. It's obviously not a system trade, but if tomorrow looks bad enough I'm all in on that short side, even if just for a few days to see what unfolds.
From Robert Prechter, "The Elliott Wave Theorist - Interim Bulletin" - October 29th
"Figures 1 through 3 show the setups in 1929, 1987 and 2018 to date [ edit: charts omitted due to copyright restrictions]. If the analogy holds, the stock market should turn down, crash for a week and bottom on November 5, which coincidentally happens to be the day before the U.S. midterm elections. If the Dow has a big up day tomorrow and then turns down, the crash low would occur on November 6. If it isn’t plunging by Wednesday, the analogy will no longer hold."
IWM - Another test of 38.2% Fibonacci retracement
IBM - Why is this bellwether stock so weak?