Tuesday, June 25, 2013

Weak counter rally so far

The market rallied to the 1590's area today but the wave looks weak so it might not even get to the level I mentioned yesterday. The counter rally doesn't look like a 5 wave count and so far it is looking like a zig zag but I rather put labels once it once we see how the coming bearish wave evolves. To be safe I took profit on the SSO I bought yesterday and I'm waiting to see what the market does in the next couple of sessions. I will short it if it gets up to the 1597 or 1614 area or go long at support again (1577, 1560). The intermediate trend is probably going to turn red by the end of this week if we don't see a rally past 1614 so it is just another reminder that one has to set tight stops with long positions. If you are trading short term that is.

Main S&P 500 Trends*

Short Term Trend = Bearish
Medium Term Trend = Neutral Leaning Bearish
Long Term Trend = Bullish 

* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

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