CME Fail II ~ The Risk Averse Alert

Thursday, September 30, 2010


Unlike the outside day occurring on June 21st, today's came with the market in a more technically positive position...


Thus, there appears opportunity to raise additional capital and further build short positions over the first few days of the fourth quarter while the fifth and final wave up from late-August bottom forms. Yet given today's second "CME fail" of the week, it is evident that strong hands have power to keep any further gains in check.

The lessons of a third wave's resiliency have been served up with great consistency since March '09 bottom: first in five waves forming a "c" wave from March 2009 - April 2010, and now in five waves off late-August bottom forming another "c" wave. Surely, the upcoming third wave down will prove no less resilient. Should this be slated to complete the corrective wave begun in October 2007 the devastation will be incredible.

Fast Money
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

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