Tuesday, May 31, 2011

Confirmed Bullish

The market is now confirmed bullish again by gapping up over the bearish trendline and closing comfortably over the TA. Commodities rallied as I was expecting and I see this as a new bullish intermediate leg for all asset classes (with the exception of the US dollar). So while the S&P target of 1403 was not reached due to the correction, chances are it will be reached in June IF the market respects the TA and trades above it. I assume these 5 waves will find a top tomorrow or Thurs and then retrace to the TA and then we should see wave that should take us to a new high for the year. And maybe then we will finally see a Fib retrace for the wave from 1040, an ideal summer correction.

I picked up emerging market plays today, mostly EWH (Hong Kong Index) and added to my FXI (China) position which gapped up a lot today.

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