Tuesday, August 23, 2011

Start of a Rally?

The market broke up of the Descending Triangle to the upside and the market almost reached the TA today. I had been waiting for this rally since late last week and how the pullback behaves should give us a clear idea if the bottom was put in at 1101. Also, there is the possibility of an "Adam and Eve" bottom which could potentially see the market rally all the way up to 1300. So we'll see if the pullback turns out to be a set up for a bullish W3 or a strong W3 of a bearish W5 as the most bearish views call for. Personally, I've unloaded all gold and now I'm long on emerging market equities (China ETFs primarily) but I am watching how the US market behaves when it tests the 200 day ma which is far away at this point. I continued to day trade today and was able to better my position by just a few points so hopefully I'll catch up to the 200 ma sometime in the next couple of weeks.

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