HDGE Bear Trap Update

 

HDGE runs inversely to the stock markets so I look for the same pattern but I have to look at it as a Cycle degree 4th wave bull market. It will be the wildest bull market you can imagine if the recent bottom did complete wave 2 in Minor degree. HDGE dropped like a rock producing an insane spike to the downside and then reversed in a spectacular fashion. It’s those long spikes to the downside I like to see happen, as they are signals for a reversal or a correction. The only thing that matters now is if the rest of this 5 wave run comes in.

We know a bear trap was forming because HDGE can’t go to zero, and at the $5 price level, they tend to have an inverse stock split, which would have made the news. HDGE should develop 5 waves up in Minor degree and since there is nothing but fear involved this ETF should travel up along with VIX.

I wouldn’t be happy until HDGE goes off the chart, but there could be another 2 sets of 1-2, wave structures we may run across. We should see the next wave 1-2 when it comes, and then after that nothing but 3-4 wave structures will arrive until wave 5 in Minor degree is finished. We are going to run into 5 wave sequences and if I’m out by one degree on this run then I’m out by a Fricken mile.

From here on we should get higher lows which are all corrections. It’s also starting to become obvious that the odds of this 5 wave run finishing this year, is too optimistic as it may stretch into February/March

 

Hits: 3

Share this...
Email this to someone
email
Print this page
Print