Wednesday, April 11, 2012

Bull Flag to Fib Retracement

So the rally I posted about yesterday showed up this morning and left a bull flag by the end of the day. Technically speaking this should be considered an ABC move so the "flagpole" is A and the "flag" is the B and should the pattern be successful the upside should be 1 or 1.618 of the A, so the target is 1383-1392 or just about the area where the Trend Average should be. So I am hoping the pattern will continue so I can re-sell my longs there and get back to unhedged on the VIX. And like I said yesterday, should the market be able to overcome the TA then it will open the possibility of changing the bearish trend that has been in place since last Thursday. Lastly, there is a smaller possibility of today's action being a W4 with a bearish W5 to come tomorrow but odds don't favor it at this point. We need optimists to get excited and buy the idea that the 50 day MA is going to hold.

Today I sold my longs and my hedge and then bought them again at a better price.


No comments:

Post a Comment