Friday, October 11, 2013

New all time high this month?

The market continued its bull run today and if a solution is found over the weekend we might see a stand alone W3, meaning there won't be a W2 retracement and the market will shoot straight for the all time high. The best example of this pattern was the wave from the Fiscal Cliff resolution on Jan 1st (which was also a Bearish Engulfing Pattern), that wave just went up with just a few sideways corrections. The market is pricing in an agreement early next week, so we'll see if the market is right. The wave count looked complete yesterday and now it looks like the 5th is extending but under normal circumstances we should see a correction of this wave for a W2 to perhaps the TA now that 1670 looks less likely.

I am in cash since I sold yesterday and you can see now why I'm avoiding shorting the market. I just hope we get a good correction so I can buy back longs and if not I'll just have to wait until the market decides to test the TA. I knew when I saw Doug Kass on the news last week the bottom was probably in! lol.. the man had quit tweeting his bearish opinions early summer and just when he thought he was going to be finally right.. he gets a BEP.

Have a great weekend!

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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