Wednesday, September 19, 2012

Corrective B wave

The market retraced in what looks so far like a corrective B wave and if today's high was the top then we can expect a C wave to the 1445 area or just below the trend average and right around the 38.2% Fib retrace. However, if we get a strong wave that behaves more like a bearish Wave 3 then I'll change the count and assume this is going for the 50 day MA. But for now, the bears seemed scared to come out so if the TA holds I wouldn't be surprised to see 1500. Also, I wanted to point out that gold is forming a nice "cup" for the cup and handle pattern. I didn't get in gold this time but if we get a confirmed "handle", it will be a nice trade.

Long Term Portfolio: 100% Long
Short Term Trading Strategy: Hedged with VXX @8.98 as of 09/13

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