Friday, February 11, 2011

Higher High Coming on Monday

So we got the consolidation and we rallied like I predicted yesterday. Not to brag about my market speculations but I have been right every single day for the last week so the system I've been fine tuning for the last few months is working well. I don't expect to be as accurate all the time but as long as I am accurate at least 51% of the time, I'll be ahead of the market. Anyway, the correction that started earlier this week ended up being a "lesser" degree correction so I think we are on a new 5 wave count on our way to 1340-1350. I expect the current wave to continue so we'll probably gap up when the market opens and then go into a W4. If not then we should open with a W4 and then push above 1330. Once we get there, it will be really interesting to see if the correction that we get is the major correction a lot of traders have been looking for. Technically, there will be no better time to put in an actual top for the rally from 1040. But I don't want to call a rally top because it is of no use (and dangerous for shorts) trying to do so. I covered my shorts taken earlier this week at a minor loss at 1316 right before the triagle break out (my cost avg was 1313) so it was not that big of a deal but I still should have covered yesterday at a profit if I had only woken up on time. I will be buying the same covered shorts on Monday or Tuesday after all the 5 waves complete and see if "the" correction finally comes but I am still holding on to my longs.

Have a good weekend!

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