Tuesday, April 1, 2014

All Time High

The market followed the count I had on the chart yesterday and it seems like it is finally going to break out of range. Going by wave proportion and my usual rough estimates with W1, a 5 count should take the market to 1900-05 which should happen just with with short covering alone if resistance breaks convincingly. The Trend Average has now turned bullish again and as I mentioned before we could see a big rally from here given then fact the market has corrected enough for another multi-week rally that could easily add another 100 points before taking another break. 

I ended up buying some VXX to hedge longs but I might position trade them depending on how the waves evolve tomorrow.

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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