Tuesday, March 4, 2014

Another All Time High

Another day, another all time high.. I was completely wrong in assuming the market would find it hard to continue its bullish advance with the current situation in Ukraine. The market simply doesn't care too much at this point and any negative news are just being used for these quick corrections that get bought. The wave structure from 1737 is basically a bullish mess, there is no W2 to speak of but we've gotten 4 quick corrections that look like W4's, so it's just one W4 after another.. a real bear killer. But at least we have the Trend Average to guide us through the madness as it has been bullish for almost a month now.

With that said, I see micro 5 waves from yesterday's low so we will get another short term correction as soon as tomorrow. Whether it is another W4 or a W2 remains to be seen but I'm assuming the market will run out of steam at some point. And given the micro 5 count, I decided to buy back VXX to hedge my ST longs for a quick profitable trade (hopefully).

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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