Wednesday, February 1, 2012

Wave 5 in progress

I was wrong in my assessment last night in assuming a complex correction and now I see impulsive bullish waves with today's bullish momentum. The TA is technically bearish as per my rule of two consecutive closes below the the TA but the count is a better guide at this particular point. So I covered my shorts at a profit at the opening and now I am long FXI (China ETF), I will update the portfolio page a bit later.

For those that follow Elliott Wave, there is a bearish camp that think this is the last leg of the retracement and that we're headed for a sell off after that. I on the other hand believe we will see a correction to the 200 day average and a rally from there based on the trends. So whatever it is, the next few weeks should be interesting and the key will be to make money in up or down markets.

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