Monday, August 29, 2011

Weekly trend is now bullish

The market broke 1208 and in turn the weekly trend has now turned bullish. So the trade is to buy on the next test of the TA or Fib retracement. I think the market's ultimate goal is to challenge the 50 day MA currently in the 1250's or even the 200 day MA in the 1280's. Whatever it is, the market is signaling further advances. Market internals were very strong today and it seems like the market is pricing in more QE by the Feds. I kept my hedge and will be most likely go margin long on the pullback. I think the more I do this, the more I am convinced that the Trend Average method of trading is the best by far. It's very hard to predict the market just based on EW alone and other traditional tools, but using the TA alone mechanically would have put me way ahead had I used it strictly on it's own.. and in case you haven't noticed, I am keeping track of the gains using this system on the right so the results are clear for everyone to see.

1 comment:

  1. What exactly is the TA that you always mention? How is it calculated?