If I'm right, we might see a strong rally in equities, lasting well into November. The time target would put a top by November 16th or sooner, which interestingly aligns with the Federal Reserve's FOMC November meeting, which has been hinted that will be a 'live' meeting, regarding an increase of interest rates.
I'm mostly net long equities, but today I added back my CLX short position, and I'll be looking to take other strategic shorts going into this Friday's meeting, if viable. I still think it's likely to see more upside, so this signal here seems highly likely to trigger.
The case, can be obtained from my weekly 'terminal pattern' chart for the DJIA .
That idea is still valid, and we have ample time to validate the decline, breaking the connecting waves 2 and 4, and hitting the price target in time after that.
Trade accordingly, buy undervalued, quality companies, short overloved, overowned, overvalued companies, try to play uncorrelated instruments, use different timeframes...hedge accordingly, but don't be biased, and let activity confirm your analysis as you move forward.
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