Monday, July 11, 2011

W4 Correction over?

The market has continued to follow the count I first posted almost a month ago and as expected, the market tested the 50 day MA. What sort of W4 this is remains to be seen, we could start rallying as soon as tomorrow morning towards a new high for the year or continue on some sort of triangle before launching higher. I covered my hedge today at the TA and then went on margin (200% long) at the 50 day MA. And as long as we don't close under this trend, I will stay long on the margin portion. I expect the market to start a bullish wave tomorrow to test the TA, ideally it should close above this level and then make another 30-40 point run above it. If the market hesitates, then we'll probably need more time. I see bullish divergences so the market is looking for 1 final big leg before going into a somewhat substantial correction.

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