Friday, August 16, 2013

Rally to TA next week?

The market tested the 50 day moving average and key support today and spent most of the day hovering around that level but closing slight under the 50 dma. The market is now oversold enough imo for a decent bounce and we might just see a rally as soon as early next week to the Trend Average. The market has retraced enough for a W2 of LT Int W5 but I am still leaning towards this being the W4 of W1 of LT Int W5, specially since a rally from these levels would make a good 5 wave count if it ended around 1720-30. So we'll just have to wait a bit more to see what is the bullish response to the "sell off". I've read about the Hindenburg omen and the start of a major correction and so on but just as I've been saying on every single correction, let the charts speak for themselves and see how the market deals with the TA as that is the main catalyst. That and the fact the count we've followed here has worked for couple of years already and made us money.

I bought Google as planned, so now 50% of my margin is long FXI and GOOG. This is my first time owning Google but this is one of the few companies I wouldn't mind owning for the next 10-20 years as their dominance will continue to grow. So maybe I will make it one of my preferred trading stocks.. we'll see.

Have a Great Weekend!

Main S&P 500 Trends*

Short Term Trend = Bearish
Medium Term Trend = Bullish
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.

No comments:

Post a Comment