Thursday, November 17, 2011

Now the Bounce

The market did exactly as I predicted yesterday and it will probably test the 50 day ma after hours or tomorrow before bouncing. What's not very clear to me is if we will just correct a bit and then put in another leg down to 1180? or if this is the intermediate bottom. Whatever the case, I see an ABC move that started late last month ending between now and the next week or so. Just in time for a year end rally that should put us above 1300 again. All of this is speculation of course and the only reason I say it is because of the massive wave that started from 1074. And just to make something VERY clear as some Elliott Wave purists have been pointing out my unorthodox way of looking at waves, I DO NOT FOLLOW ELLIOTT WAVE THEORY.. I believe in short and intermediate wave counts but anything beyond in a few weeks is useless to me as a trader looking to maximize returns and minimize risks. There is no point in having a scenario 1,2 or 3. I might as well flip a coin for that. I follow 1 scenario only and that is the Trend Average, which familiar viewers know is what dictates the trend and which has proven to be 90% correct from the time I have been tracking it (On the right hand side). So if you are into Elliott Wave counts, I recommend Dan's blog (Daneric Elliott Waves) or Wave Principle. They are listed on my blogroll and they are the best at what they do. And they do all of it for free (just click their ads please) so go check them out if you prefer an orthodox view of EW.

Anyway, today I put my cash at work so I am all long now. Technically, I could be more patient in case another down leg follows but at this point the main W3 of the C is here, so I am ok if I don't pick the perfect bottom.. just hoping Santa will be good to me this year..LOL.

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