Tuesday, September 11, 2012

Wave 5

The SP500 continued its Wave 4 sideways movement and it looks ripe for a Wave 5 rally at this point, so we should see this bullish wave come soon. Also, the DOW reached a 4 year high today and in turn eliminating doubts about the DOW "not confirming" a new high like the SP500. And while I keep reading about market skeptics on mainstream sites and blogs, I am starting to see some bullish articles calling for 1500, 1550 and 1600 (different articles) so perhaps the bears will jump on the bandwagon soon and then we'll get the proper Fib correction sell off. Usually works like that, most investors are skeptic about "counter rallies" than end up being real rallies. But slowly they realize they are missing out and decide to jump in. But by the time they go long, all those that rode the market will be selling so guess who gets stuck with the bag.. the market is lined up to target the levels I mentioned last week so we'll see if I am right. I will be loading up on my hedge again when the bears throw in the towel and when everyone is convinced there's no way to go but up :)

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