Monday, July 30, 2012

One more push to 1400?

The market barely made another higher high but it was within the 1388-1392 range I mentioned couple of weeks ago and it looks like a W4 set up for a final W5 push to 1400+. The FOMC meeting will likely be the excuse for a rally, so I would expect a rally to start in the next session or two before profit taking starts taking place sending the market to test the Trend Average. And if that TA holds, then it just opens the possibility of a strong bullish wave that will mark a new high for the year. The bearish case only has a chance if it manages to send the market below the TA and the 50 day ma, until then the way is up. So if you like shorting, at least do it below the TA and not when the market is galloping.. you'll sleep a lot better.

Long Term Portfolio: 100% Long
Short Term Trading Strategy: Shorting intraday extremes, closing same day

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