Thursday, January 2, 2014


We finally had a "significant" correction after a 2 weeks of rallying and the market came down to test the Trend Average and closed on it but due to rounding I have it as 1832 on the chart. So I am going to assume this is a corrective W4 of a smaller degree with another high to come unless the Short Term trend turns negative, in which case I will assume there will be a correction that will go for the 50 DMA at the very least. Obviously, it would help (the correction that is) if we had some sort of bad news but so far there isn't much the market can use as an excuse to really sell off. Perhaps, we'll start seeing something bad in the next week or two? One troubling article I did see earlier today was on permabear Roubini turning bullish and if he is joined by the likes of Marc Faber and Doug Kass then we'll know the market is about to top! lol.. I forgot to write about it but the day the market found a bottom, Faber was on the news talking about how the market had topped at 1813 and so on. Bears getting airtime usually is a sign of a bottom.. works like clockwork.

The market will continue to decline from its November high of 1,813

I continue to hold both VXX and my longs. Still looking to pay off the rest of my front gate with Volatility.
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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