Friday, October 15, 2010

Elliott Wave Update - October 15th

The market managed to stay in the rising trendline despite the bad news on consumer sentiment and the sell off in banking shares. This close turns the intermediate term bullish so we will most likely be in a uptrend for weeks to come. I personally find hard to believe we could get to 1250 on this leg without a pullback, which is the target for the inverse Head and Shoulders but who knows. Either way, I will be prepared for both upside and downside.

I am not going to fight the trend, as long as the market stays over the magic number I will be taking long positions and shorting only at extremes. I traded FXI in and out couple of times and I shorted at the open as well. So I was able to better by short SDS position and add some money thru FXI. I am staying in cash for the weekend and jump in on Monday.

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