Thursday, February 23, 2012

Going for 1376?

The market looked as if it was going to go down early morning but instead it it tested the Trend Average successfully and it reversed and now the 1370+ area looks very possible. As I said yesterday, the lack on impulsive bearish waves in this correction raised the possibility of another leg up, so we might just get a gap up tomorrow morning to the target area. I am not 100% of how to label these waves just yet until I see what the next bullish wave looks like. If we get a strong one tomorrow, we might just see 1400.. yes if we assume Wave 1 was from 1340 to 1367 and the wave 2 bottom was at 1351. Also, considering retail investors are probably about to jump in the market now, it would make a lot of sense since retail usually are the worst timers.

Is the Smart Money Heading for the Sidelines?

However, as I've been saying for a while, the risk is to the downside so better to play defense at this point. I am all cash but I bought and sold VIX today as I saw a good set up. This trade was not as short as the one a few days ago but it was still only 45 minutes.. you can see the trade at my twitter account.

Today's trades were logged as follows:


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