Thursday, January 30, 2014

Trend Average test?

The market bounced as I was expecting and it looks like it might have one more bullish leg (W5) left that might test the Trend Average before possibly coming back down again. The levels I am watching are 1807-1813, which is basically the most recent top (after hours cash equivalent) and the 50 Day Moving Average. On the support side, I am looking at 1782.92 as the level the market can not retrace into as that would eliminate the W5 possibility. If the market makes it to the resistance levels and can not overcome the 50 DMA, we will have a good a nice Head and Shoulder's set up so the next two sessions are very important.

I ended up selling XIV (13/14) in the morning but perhaps a bit too early as the market went higher but profit is profit and I am not complaining at all. By the EOD the price for XIV had plummeted back to below yesterday's buy price so I ended up buying back the shares again in after hours. I am also experimenting with short term wave trade set ups on some individual stocks and I bought some FXCM as a test so we'll see how that goes. Hopefully we get a good gap up tomorrow and I will close a good trading month.

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. 

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