Target reached.. but higher highs ahead likely

I posted the 1388-1392 level over one week ago and today we finally reached it after the market managed to fool both bears and bulls earlier this week. And just like I said yesterday, higher highs were likely and they continue to be highly likely going into next week. And if Gold breaks out, you can bet the stock market is headed for new highs for the year.

I didn't get a chance to short (to hedge) today at my 1388 target because I was away from the computer but I'll probably get a chance next week. And to people trading against the trend, just be careful. I know a lot of traditional Elliott Wave counters are very bearish and are betting for a cataclysmic sell off very soon.. but I wouldn't bet the house on that just yet.

Here is an article from the one institution who can be credited for making wave counting popular. Yours truly thinks they are a FAIL because they disregard the trend completely. However, in times where the trend is BEARISH (not bullish like it is right now), then this principle of the W3 applies..

The Drop Like a Rock Scenario for U.S. Markets

Third waves are "wonders to behold"
July 27, 2012

Have a Great Weekend!

Long Term Portfolio: 100% Long
Short Term Trading Strategy: Shorting intraday extremes, closing same day