The market has made it to the 1630's as I had been patiently waiting for and now that the bull flag target is technically satisfied and Wave (V) on the WIII is equal in length to Wave (I) on the micro count, I expect a correction to start as soon as tomorrow or early next week at the latest. The ideal support for this bearish wave would be the 1612-1618 area before launching one last bullish wave fueled by people who are coming late to the party. Unfortunately, this is where many amateur investors will get burned as they miss most of the rally and then they try to rush in only to be left holding the bags. It's a mean world but that's how lessons are learned.. I find it interesting fearmongers like Marc Faber, Roubini, etc. get lots of attention during corrections and that prevents average people from buying stocks when they are actually cheap. I was just looking the other day at this page where Marc Faber states he is "100% sure of a recession by 2013" (How can this man be 100% sure is beyond me.. I would cut him some slack if he would have said at least 99% but no, he is a fear mongering genius) and if you look at the poll on the left side, close to 80% of people agreed with him.. that's 80% of people who probably have missed the entire rally and now are kicking themselves in the behind.
Here is the link:
Marc Faber: 100% Chance of Global Recession
Anyway, today I bought back all the VXX that I sold earlier in the week at $18.31. Not in the 17's as I had hoped but nonetheless a good price and much cheaper than when I sold. So I'm hoping to squeeze a dollar out of this one.
Main S&P 500 Trends
Short Term Trend = Bullish
Medium Term Trend = Bullish
Long Term Trend = Bullish
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