Monday, March 26, 2012

5th wave finished?

The market has done exactly as I had been expecting since last week. In fact, I didn't even add any new labels as the market just went to where I labeled the projected wave numbers. Today's rally was a strong one and it was able to break 1414 without much hesitation. However, the next big test is the number I've mentioned last week which is 1420 (2X W1 of this W3). We got a sell off last time we reached a Fib number (1378) so we'll see if this one does the trick. If this doesn't stop the market, there is a good chance the market will see a very bullish April and reach 1500. All oscillators are useless at this point so watch that Trend Average (1402) which is telling us to stay long or at least hedged.

I sold my SSO today and loaded up on IXV and then sold(the inverse of VXX) to fully hedge my VIX positions. I'm not bad a trading but I do get a bit greedy at times with my portfolio management. So if there is one thing I should learn from this wave is never put more than 30% of my trading portfolio on a single stock/etf. I will post my trades later tonight.


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