AA Elliott Update

There was no a comfortable entry point for long position this week. However it seems that current bullish wave is about to complete and a new bullish move should start at about 26 or below. Therefore we have a good risk/reward ratio for entering short term position. There are several alternative scenarios for the price movements in the nearest few days. The main reason for this uncertainty is due to the fact that we can not distinguish interchangeable waves (flat and d3) before they are completed. This uncertainty should not bother us as long as we accommodate it in our trading plan either by staying aside or by taking trades and knowing our possible losses and rewards. ...Read more 1) The price is in the Wave 4 which is expected to complete in the price range 26.97 to 28.94, but more probably between 27.39 and 28.71. This wave is due to complete anytime from now until 29-Dec-2005, but is most likely to complete before 12-Dec-2005. Once this wave 4 is completed, expect the market to continue up to the end of wave 5, which will most probably be an Impulse but could be an Ending Diagonal. Wave 5 will complete the Impulse. 2) The price is in the Wave B of an inverted Flat that will complete in the price range 13.94 to 24.48, but more probably between 21.54 and 24.34. This wave could complete anytime between now and 18-Aug-2006, but is most likely to complete sometime between 12-Dec-2005 and 13-Jan-2006. 3) This is a low probability scenario since it does not synchronize well with the higher degree waves. Price is in the Wave X of an inverted Double Zigzag which is expected to complete in the price range 22.28 to 27.74, but more probably between 24.54 and 27.01. This wave is most likely to complete sometime between 12-Dec-2005 and 13-Jan-2006 Note that it cannot complete until 09-Dec-2005 but it must complete by 29-May-2006. Trading strategy 1. Enter short at 28.00, stop loss 29.00, take profit at 26.00. 2. If stop is hit, enter long at 29.00, stop loss 28.05. 3. Update outlook daily.