Thursday, April 12, 2012

Bull Flag target met

The bull flag target I posted yesterday was met and it looks like the ABC move is complete or nearly complete. Today's market seemed to have "surprised" some "experts" but for all intent and purposes, there was a clear pattern in place with a clear price target. Goes to show how emotional people get as the ones that were running scared earlier this week came out buying today. And as bullish as the market seemed today, the real test as I have been saying for days is the Trend Average which today dropped to 1392. If this is truly the beginning of a sustainable rally, the market must trade and close above the TA until then the trend is down and it is that simple. The market ended extremely overbought and should start the sell off/pull back tomorrow, if the market continues its run then this wave will turn into a bullish W3. But the TA at this point serves as a good stop, so the plan is clear. I am personally hedging on any trades above it, playing the short side on trades below it.

And today I executed my plan which was to sell my longs and my hedge. Trades were logged as follows:


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