Thursday, August 26, 2010

Elliott Wave Update

I exited all all shorts and kept my FXI hedging position. The count is conflicting so I rather miss an opportunity to trade than lose on a trade. I covered all positions from 1055 at break even and the remaining 1/2 short position carried from 1098 at 1053. I should also add that there is an inverse Head and Shoulders with the low today forming the right shoulder and this projects to 1075-1080.

Tomorrow morning we'll have a clear answer to this wave. Since we will have the GDP announced, I would assume the expectation for bad numbers is built in the market. However, the market might sell off (for the V wave) if the numbers point to an obvious economic slowdown that will lead us back to recession.

No comments:

Post a Comment