Friday, May 2, 2014

Stock Market Update - May 2

The market made an attempt at the all time high but it was reversed despite seemingly solid employment numbers. The waves are choppy but it doesn't mean they're bearish since key levels have been holding and one could make an argument of a sideways/time correction after the rally from 1850. So my guess is Monday we should see a move out of the recent range and start rallying or retrace back to at least 1870 and form a base to attempt another rally to take out the all time high once in for all.  We still have the Russian issue in the background but as I said last week, Putin will take its time to make his moves so this will drag things out. Other than that, it is May so unless this year turns out different to others we might see highs but the summer correction will start in the next few weeks and so will the Int LT W4 that was supposed to start back in November at 1790. The bullish signal on the Long Term Trend has been in place since February 2012 so the market could use a break and hopefully we'll be able to anticipate the the trend change. I'd love to pick up some stocks cheap on a strong correction.

I am holding to my longs but added VXX as hedge just in case.. Have a great weekend!

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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