Thursday, January 5, 2012

One more rally?

I was away yesterday on a business trip that took much longer than I had expected so there was no update. However, nothing really much has happened since the W4 was still in the works. But now that it seems like we have corrected enough, the market is ready to take on 1292 and possibly 1300 as soon as tomorrow. So chances are we will get a great jobs report or the market will ignore any negative news and rally and then I am pretty sure we will go into some sort of correction as the market is overbought and the wave from 1203 needs to be properly corrected. I am holding longs until this 5th wave materializes and will take profit, especially if we get a nice rally. In fact, I might even go short depending on how the waves evolve. The Trend Average is currently at 1265 and above the 200 day ma (very bullish!), so if I see 1310 in the next couple of days I'll short as it is likely the market will test the TA for sure and very likely the 200 day on the corrective/bearish wave.

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