3 reasons to sell your cba shares, page-56

Hi Griff, I basically agree with you on direction although maybe you're overly analysing the fine grain a bit. I shorted this using Puts from $78 to $74 for a tidy profit I have also been looking for a ABC, but I closed my puts when it touched $74 as that's just above the 25% retracement which is common for the initial sub-Wave A down and also coincides with the $74 price interval (CBA respects $4 price increments). It wants to bounce here and I had to use all my discipline not to enter a call option today for the run back up to $78 - $80. The trouble is DJIA is overpowering our market at the moment and that has further to fall. We might get a few days up but not enough for me to trade and too risky right now for the long side.

Ultimately I think the final leg down will stop at $70, with the 38.2% fib retrace at $68 the outer limit. Anyway I'm also working this ABC correction so very similar to you, just that I'm going to sit out the B leg up. This week will tell whether it can bounce here, another drop will probably go straight to $70.

Interesting.