Wednesday, December 1, 2010

Market Update - December 1st - Breakout points to another rally to 1227

So the market today broke out of the pattern as I was speculating yesterday we would do and the strong up day confirms a Triple Bottom Reversal. In looking at the chart I posted last night, you can see the similarities. The last time we had a strong up day like today was September 1st, which was the break out from the triple bottom then. And I expect the market to continue upwards in the next few days. I sold my longs at a nice profit at the close and shorted and closed right away. I almost kept my longs overnight but I figure I rather lose a trading opportunity than actual profit. If the market tests the rising trendline or does a Fib retrace I will get back my long position. Right now, I see 5 waves completed of a W3. So tomorrow we could trade sideways and then continue upwards or a retrace and then up. The retracement or sideways move could also happen overnight so we might wake up to a gap up as well.

No comments:

Post a Comment