Wednesday, September 18, 2013

All time highs and more to come

The market made an all time high as I had been expecting but failed to reverse since the news were just "too good" for the market to correct. Looking at the count I see an extended 5th of W3, so maybe we'll get a micro W4 and then another high before working out some of the euphoria. In the meantime, the Trend Averages and the 50 day ma continue to rise and perhaps the market will go for the test of the TA or the 50 dma when they are closer to 1700 which has now turned support. The NYMO is off the charts (hasn't been this high in over a year) and in the past it has signaled a correction and then a bull run and in other cases just a continued run. So now that pieces are falling into place, the bullish W3 scenario is very likely and a test of the key trends will be a good time to get in and enjoy the ride. Obviously only if the market continues with the bullish trends.

I ended selling VXX for couple of months worth of Starbucks and bought it right back after the announcement was made. I will sell it again when we get that trend test or on a good profitable spike.
My long term account looks pretty good so I hope this bull run continues, Rapa Nui I am coming.

Short Term Trend = Bullish
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. 

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