Stock Market Update - May 30

The market has continued to extend its bullish 3rd wave and the original target has basically been reached.  I am still expecting a W4, so this wave looks like it is going higher before any substantial correction by the time it's completely done. After going up 30% in 2013 and almost 4% in 2014, the market hasn't really bothered to pull back. However, I believe a higher degree W4 correction is coming sooner rather than later, specially given the fundamental background. Summer is almost here and I'll be surprised if the bulls manage to keep it up, but as I've said before, expect the unexpected.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

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.

Another All Time High

I don't have much time today to write as I am on my way out. But basically, the W4 I was hoping for has not materialized and instead I see the W3 extending. The market is already close to my original target for the complete 5 wave structure, so if we get 5 waves we will probably see the market reach into the 1930's. I bought back some of the short positions I sold on Tuesday in case we do get a W4 in the next session or two.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

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.

Stock Market Update - May 28

The market made a marginal new all time intraday high and I'm looking at 1902 as the target for W4. Another wave around the same length as W1 and the market should be in the 1920's and ready for a stronger correction. The question of course is whether we will a substantial correction to the 200 DMA at the very least or just another test of the Trend Average or 50 DMA and see new all time highs again. I will probably buy some longs around the 1902 level with a short stop and then hopefully buy back my short position if the scenario I described materializes.
 
For further analysis onNASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

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.

All Time High

The Trend Average was right and the market invalidated the H&S pattern I was tracking and trading. It is clear now that we are seeing a bullish W3, so I did some calculations and I have a 1925 target for the wave that started at 1862, so we should see the W4 tomorrow or Thursday. The previous indexes that lead the sell off a few weeks ago are rallying, and if their momentum continues, we will see a sustained rally on the SP500 for some time. However, I still see the market in a Rising Wedge in the longer term time frame and I'd be surprised if we don't get a summer correction at all.

I stopped out of my short position early today and will consider re-entering if the market gets to the 1925 level. Anticipating a trend change is always hard but at that level there will be enough of a deviation to enter a lower risk short targeting at least a test of the TA. For now, I am all cash and waiting for an opportunity.

For further analysis onNASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

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.

Stock Market Update - May 23

The market came within a point of making an all time high and the H&S pattern looks like a failed pattern at this point. At the same time, we need to see a strong bullish W3 to break out of resistance and clear the range the market has traded for the last few weeks. I posted a daily chart to point out the Rising Wedge in place, a break of the trendlines on either direction will point to where the market is headed in the next few weeks or even months. But as a pattern in itself, the Rising Wedge or Ending Diagonal is a bearish pattern.

I came close to stopping out of my positions. And in all likelihood, the market will probably make another all time high next week but until that happens, I am staying put. I guess it makes the long weekend even longer! lol.

Have a Great Weekend!

For further analysis onNASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

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.

Stock Market Update - May 22

The Head and Shoulder's pattern I have been following and trading is hanging on by a thread as the market pushed past the 1885-90 resistance and stopped at the last resistance before the all time high at 1897. The waves from 1868 can be counted as n ABC move with strong selling to come tomorrow or Tuesday. But with the Trend Average back to green this same count could just be part of a bullish 5 count that will break out of range and set an all time high in the next session or two. I am staying put with my positions but will plan on exit them if an all time high is reached. No point in fighting the trend or market euphoria if the H&S pattern fails.

For further analysis onNASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

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.

Stock Market Update - May 21

The market closed again at resistance and I think we are about to see a substantial move. The H&S pattern remains in place but the market managed to turn the Trend Average bullish today, so I am hoping the signal will get whipsawed. I think we'll get a better picture before the long weekend. I am staying put on my short positions until I see a reason to sell.

For further analysis on RUT, NASDAQ, DJI, Gold, Silver and Oil please visit http://www.ewaveanalytics.com

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.