Sunday, October 24, 2010

Elliott Wave Update - October 22nd

The market triangulated most of the session on Friday and it points to a burst higher on Monday on a 5 wave. The number I am watching as a top is 1193 but I'll re-short as close to it as long as the impulse is less than 1%. I imagine people using the G-20 gathering as an excuse to push the market higher. Also, we have a lot of companies announcing this week which should put a positive bias to the trend. However, the end of the week should get interesting as we are approaching elections and the announcement of Q2. My guess is that the pullback will come around that time and we will see 1200 or 1219 by then. And once we get a decent correction to the 50 MA? I will be going long as everything points to a bull market as this point. Never mind how the economy sucks, as long as there is "depreciation" of the dollar as Geitner himself over the weekend, assets will go up.

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