Tuesday, August 9, 2011

Counter Rally

The counter rally is here and it just needs to be confirmed tomorrow with follow through buying. Today's volume was high and it broke through resistance easily in the last 15 minutes. So we'll probably see aggressive buying that should take us to the TA at the very least. Today the TA dropped to 1232 (and will drop some more tomorrow) so maybe we'll see them meet at some point in the next couple of days. Alternatively, if there is no follow through buying tomorrow then we will most likely re-visit 1100 again before any meaningful rally. I took my chances today by going margin long at 1120 and my stop is now raised to break even. I used the TA system at the minute level and it worked well so I might be using just that to take profit. On the EW side, we are either at the A of W4 or the 5 Waves are finished and now we're seeing an the start of an multi-week ABC move. Whatever the count, the bounce is here and I am hoping we'll see 1230 this week.

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