Monday, November 21, 2011

Correction Completed (or near Complete)

The market ended up putting a 5th leg down and tested the 1180 level as I first started speculating 3 weeks ago we would. And now I see a complete or near complete ABC move from the 1292 high. So I think the market has reached the necessary Fib retracement in this correction and now there is enough room for a big rally that will take us well above 1300. I've missed maybe a couple of moves since the summer so I might be wrong about this coming rally but so far I've been very accurate on the majority of waves. I am already long as of late last week and will be adding margin long on trade above the 50 day MA at 1207 and using this average as a stop. The whole European problem and the budget issues will be again forgotten only to be remembered again by the time we need a correction.. when I first predicted 1180 and the test of the 50 day ma 3 weeks ago everything seemed dandy which made my target seem far fetched. But I said it then, the European issue is going to be used as an excuse to buy or sell and the losers are going to be the overly excited crowd (those that sell in panic or buy in euphoria). We'll see if there is a 5th of a 5th in this current bearish wave but I am betting on a big rally coming at any time.

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