FOR FRIDAY: (8/26) We often get point/countertpoint reactions when Yellen unleashes. Sometimes you get a quick reaction and then end of the week profit-taking sets in. Usually it’s difficult to outsmart computer ALGOS but we can take positions at key place in patterns. We think stocks have finally issued a sell signal for the 4th wave and doubt there’s more than 2140-48 for the S & P. Metals are unraveling and are still vulnerable into Monday so it may be much worse than expected. Dollar is so subject to surprises and has become a bit crazy but we’ll hold out with a big stop and see if the downward pattern unfolds.
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