Friday, August 12, 2011

TA Tested Today

The market finally tested the TA today but failed to close above it. The last time the market traded above the TA was at 1328 or 142 points ago and the TA might turn positive next week so it remains to be seen how the rest of the current wave plays out and how it gets corrected. I was originally inclined to label the waves an ABC move after the 1101 low but in looking at the structure it seems to me like 5 waves so this could be an A or a W1. I think we should be able to tell on the coming bearish waves and if divergences develop. I am ready to jump in again should the market start trading above the TA and as a matter of fact I did today but I got stopped out at break even again. I've lost count how many break even trades I've had this week, must have been at least half a dozen.

Also, I executed my Gold plan today and sold every ounce of Gold I had in my portfolio. I made good money on it considering I only held for 6 months and I put all that money in Chinese stocks. And just as I had finished posting yesterday, I saw this article on CNBC;

Which coincidentally highlights China as a potential investment hot spot. And while I am well aware of the potential issues of investing there, I am convinced that market will outperform all other markets for the next 10 years regardless of what happens to the rest of the world. They have so much cash to deploy, they can stimulate out of any recession easily. I think my portfolio is now almost 3/4 in China ETFs and I am hoping for a rally in the next few months.

Have a Great Weekend!

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