Some are expressing an interest in my recent absence from posting charts.  Many don't realize that I also practice medicine as well.  My 8 year anniversary of passing my board exams in Family Medicine is coming up this year and I have the joy (pun intended) of having to recertify for those boards again.  Doctors are continually held responsible for what they learned in their residency years and also keeping up with the current trends.  That takes a lot of effort.  Every night I come home from work and study topics I haven't looked at in years, time that would otherwise be spent charting or some other fun things.   Its even going to interfere with my yearly Moab mountain biking and hiking trip through Arches National Park!  My test is in early May. So please bear with me!

This is the last chart I created back in mid-December.  It was to "go long the S&P up to the Yellow Upper Line." Back in December, I figured the yellow line to be in the area of 1380 based on it also being a "measured more" from the red trendline. As time has marched onward, that exact price may no longer be valid, but the move to the yellow line still is!  Chart it out on your own.   When if finally reaches the yellow line, that will be point 5 of the Wolfe Wave.  You know what to do there. Watch for DIVERGENCE.  Go Short.  Go Short. Go Short.  The Street will be all happy and giddy telling everyone to go long.    From Point 5 the next destination is the EPA line (Estimated Price at Arrival - a line extrension drawn from Point 1 through Point 4).  That last part of the Wolfe Wave occurs the quickest.  Its trajectory appears to be the lows of 2011.  Put it in your own charts!  As this chart is kinda old and needs your updating ;-)   I could do it, but you'll learn better doing it yourself.  Happy trading days ahead for all of you!

Layne Hermansen