Monday, June 10, 2013

Potential Inverse Head and Shoulder in the works

Before I add today's market analysis, I wanted to give an update on the shooting on Friday. Unfortunately several people died and this particular event happened right in my area, in fact the nut job lived half a block down the same street from my old address. It just goes to show that this gun issue debate affects everyone because no matter where you are in this country, there is always the danger of some lunatic going around shooting. And it is just sad that this is a reality we now have to live with. My area happens to be very strict with guns but when you can just drive a few hours and get an AR-15 and all the needed munitions legally, gun control doesn't mean all that much. I am just glad the gunman was neutralized before he could use what he had with him. People got lucky it was a Friday on a finals week with few students around, had it been just a week earlier it would have been a much bigger tragedy.

Anyway, the market.. as expected the rally continued to show its strength and I am hoping but not all that sure at this point the 1623-26 will be tested at all. As it is there is a good chance of an IHS forming that targets 1696. So bears better show up tomorrow or else we will see a break out to new highs and that won't be all that hard with all the short covering that will take place when key resistance breaks.  We've seen it several times already this year, so just be ready to position yourself accordingly. The TA is still neutral/bearish but it will turn bullish fairly soon if a reversal doesn't come soon.

I ended up buying VXX at $19.25 last Friday and I position traded FXI to better my cost to $35.97. Both positions underwater I might add but as I've said before, I enjoy a good challenge so I will try to make them profitable with the coming price swings.. we shall see.

Main S&P 500 Trends

Short Term Trend = Bearish Trend Being Challenged
Medium Term Trend = Bullish
Long Term Trend = Bullish 

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