Friday, September 2, 2011

Correction Target Met

The correction I had been calling for since early this week has now met the target by retracing into Fib territory and meeting the Trend Average. And as I speculated yesterday the markets used the jobs number as an excuse, what remains to be seen now is how the market gets back up to the 1200 area. The reason for this is because of the impulsive nature of the selling today, a correction would have looked better if there were Zig Zags in them. If the market intends to rally to the 50 or 200 day MA, I'd like to see a strong rally starting early next week. I should point out that August 1101 level could be re-visited on a 5th leg of that intermediate wave as it seems like it is missing but odds don't favor that scenario at this point unless 1136 gets taken out (That would reverse the 1208 breach from Monday). I covered my short position and re-entered my long position (the trapped one) and I was able to bring down my cost average to right under the 200 day MA, so my next target is the 50 day MA. Also, I bought back what I sold at 1226 on my investment portfolio and should the market go into some sort of extreme sell off I will apply margin on the long side.

Have a good holiday weekend!

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