Gap Filling

➤ Prices are moving along with the playbook so far. The gap resulting from the previous drop is like a magnet and is in the process of being filled.

➤ I remain 100% in cash waiting for the next entry signal. 0% exposure means a wait and see approach with no directional view for the time being. The maximum exposure is +/- 200%, the level of highest conviction.

➤ The alternative view to my upthrust thesis is that prices are in wave 4 or 5 in Elliott Wave terms. A potential wave 5 should result in a new high in this bull move from the bottom. This cannot be discounted.

➤ At this juncture, it does look like we are in the midst of a wave 4, looking to form an ABC corrective pattern. If true, today's up move is forming a lower high in wave B and ending with a sell-off to complete the C wave. In this respect, our viewpoints are aligned as I am also seeking a lower high.

➤ Conclusion: Still waiting patiently for the next entry signal.