Tuesday, February 1, 2011

Weekly Trend is back to positive

So much for Egypt being the catalyst for a correction. The market reversed all the negatives from the sell off last Friday by closing well above the trendline (and in turn failing to confirm the downtrend) and turning the weekly trend back up by putting in a higher high. Therefore, the most probable scenario is further upside. From looking at the current wave, it looks like there is still a W5 before a correction for this particular wave.

I pared down shorts today but did not cover them all. And I am still keeping my longs from December. My goal was to start selling long positions at the first sign of a bearish trend confirmation but this rally just seems to keep going and going.

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