The market continued its bullish bounce this morning only to be almost completely reversed by late afternoon by testing the 1623-1626 level again. It remains to be seen just what the market intends to do but so far it's looking like a double zig zag correction. So there's a good chance the markets will move sideways or trend slightly bearish for some time and setting a base for another multi-month rally. At times like these, the best is to be positioned according to where the Trend Average is.
I ended up day trading and made some money. I was planning to stay out until seeing a good trade set up but I bought 1/4 of my normal VXX position for the thrill of it (and the fact that the TA is red), so we'll see how the market holds if 1423 gets tested again. If 1623 breaks, there isn't much support until 1597.
Lastly, as I mentioned couple of weeks ago when the correction started. When we start hearing from fear mongers on the news, it will be a sign the market will be getting to rally.. here is Marc Faber who has recently popped up again on the news (as predicted!). He was "100% sure" of a worldwide recession for 2013 and scaring everyone last year.
http://www.cnbc.com/id/100788714
On this interviews he doubts there will be new market highs.. which means, there WILL be new highs. Also, he says China is a bubble and is not growing as fast. But then at the end he says he is planning to buy Chinese equities? .. I have been 100% long on Chinese equities and will remain so for quite some time. We'll see who is right in couple of years.
Main S&P 500 Trends
Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish
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