Wednesday, March 16, 2011

Next Target 1220

The waves in the market are still hard to read following Elliott Wave guidelines as there are several overlapping impulsive waves. So I will refrain from labeling them since it's hard to predict waves without a proper wave structure. These sort of waves have happened before but they have been seldom and the best I can think of is to label the entire event from 1343 as an ABC or a W123 (with W3 in progress). I was looking for a counter rally but every single attempt by buyers has been failing, therefore there is a good probability that we will reach 1220 faster than I thought. The 1255 support level broke so I think we have more downside to come. I assume we'll see a bounce before then to test the TA at some point but that could be this week or next and that TA is falling fast (currently at 1300). And as tempting as it is to go long to play the bounce, I will only trade short until the TA turns positive again. I am however parking cash/position trading CNY, which is the Chinese Remimbi ETF.

Also, please note my post earlier on Japan. Help those in need if you can.

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