The market looked bullish today by gapping up big early morning today and ending the day green. However, the substantial reversal that took place after the gap tells a different story. For the first time in quite a while, rallies are being sold into to which a sign of distribution (from the big guys to the unsuspecting future bag holders). So while the market managed a close above the TA, I am leaning bearish betting there will be more closes under the TA. Also, if the reversal wave we saw today was a bearish W1 then I am expecting 1625-1635 to be challenged again but this time it would be the lower end of the range. If this is not the beginning of a bearish 5 wave count then there will be more choppy trading until possibly challenging the 1687 high for a flat correction. If the market is able to regain the TA firmly I will look for bullish set ups and trade accordingly. Until then I am wearing my bear suit for the SP500.
I ended up position trading VXX today and improved its cost average by 10 cents so it is now $18.62. I guess I should have stayed in cash over the weekend!! But it's all good, I enjoy the challenge of being underwater and trading my way out. Last but not least, thank you for all the input on what I could use for phone alerts. I ended up buying a $5 phone (I can't believe they're that cheap) on a pay as you go plan and I signed up for fax2me to get call alerts by emails. Tonight I will be setting it for 1636 and I am hoping to get a wake up call early morning :)
Main S&P 500 Trends
Short Term Trend = Neutral Leaning Bullish
Medium Term Trend = Bullish
Long Term Trend = Bullish
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