HSI

OK 3 important points to make today here:

1. We have the start of a substantial pull back, many doubted it would come but as always, it has.

2. It is crucial now that we see support found on the 0.38 Fib at 20658 or the 0.5 Fib at 19856 for Wave 4.

3. The variable here: We could still be in Wave 3.

So i'll address these all now:

1. Very welcomed pull back and now our 20% trims on $BABA and $BIDU were well timed and we have cash on the side now to add to this pull back, the pull back today went as far as the 0.38 Fib, so we could see Wave A complete and I would expect Wave B next, followed by Wave C, we usually like to see a lower low from Wave C, which is why we can't rule out a pull back to the 0.5 Fib, so it could be steeper than a normal Wave 4 pull back.

2. This Wave 3 was fast and aggressive and yes parabolic so there are risks here, but getting a pull back when we did for me is saving the structure but now is the crucial point, we need to see Wave 4 hold where we expect, between the 0.38 - 0.5 Fib levels.

3. The one variable here is that we actually could still be in Wave 3, I have no issue with that if it is the case, the subwave 4 of Wave 3 was short and fast, even tho we spoke about this already that we can see 3 waves in that subwave 4, but it is something I am watching.

The plan:

Adding at or between the 0.38 and 0.5 Fib levels once we see a hold.

Block out the noise now

We have done this all year and we gained +60% on $BABA and all our ADR positions.

We will continue to focus on the price action to guide us

I will alert when I add to my positions

I trimmed 20% in both $BABA and $BIDU but I will be adding 40% to both positions if we get a hold of support where we expect

Wave 5 is a 40% gain from our Wave 4 support level, so I will execute with conviction.