Monday, May 12, 2014

All Time Highs

The market finally revealed itself today by launching a bullish W3 to all time highs, falling short by less than a point in the cash market but putting breaking the all time highs in after hours. The DJI also put in an all time high as well so this clears up the count a bit and confirms what I had been saying since the "perfect ABC" to 1812. The rally also shows just how much the market cares about Russia. So next time we see Russia in the headlines remember that it is just an excuse to sell and nothing more. With this said, this bullish 5 wave count might be it for a while. I've been expecting a W4 correction since Nov 2013 and there's a good chance we'll get it after the bulls go on vacation to enjoy their gains. I will be looking for the 200 DMA on that pullback, which btw I think will be healthy for the market so it can consolidate and rally even higher by the end of the year. I am keeping my hedge in the meantime while I hold to my longs. My goal is to sell these positions by the end of the 5 wave count to position trade or raise cash.

Also, I wanted to thank everyone who has wished me well and have given me feedback on the new site. To be clear, I am not planning to change anything in the way I blog or cut back on anything on this blog. What I am planning to do is to give market trend and wave analysis to the NASDAQ, RUT, DJI, Oil, Gold and Silver on the new site twice a week which again is I have never really done the calculations on those markets and in a way it will be better now because then I will be on top of all markets and identify important pivots that affect the overall market. Had I been following the NASDAQ for instance before the last correction started, I would have been able to get defensive earlier on the SP500.

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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