Friday, September 28, 2012

Next week

The market didn't really do much today but it did manage to form a head and shoulders pattern that targets the low 1420's. So the count I've been posting is still valid and hopefully we'll see that bearish 5th wave early next week. Once we get a low for this bearish wave, we should be able to see if the market is indeed going for 1500's. The markets do look bullish and as I mentioned few weeks ago when gold broke out, if gold makes new highs so will the stock market. Also, there is an impending long term trend change to the bullish side on emerging markets. This means the "risk on" trade is in and I will not be all that surprised if what we are seeing now is just a correction (on the SP500) of an ongoing bull market that will challenge the all time high. Also, I've been loading on emerging market ETFs and I am turning the rest of my cash into equities early next week on my long term portfolio. There are some international markets that are likely to double or triple in the not too distant future and the deal I've made with myself is that if I am right on the emerging markets (specially China and Hong Kong), I will post pictures of my vacation to the Easter Island on this blog.. that will basically mean yours truly is for all intent and purposes retired :)

Have a good weekend!

Long Term Portfolio: 100% Long
Short Term Trading Strategy: Hedged with VXX @8.98 as of 09/13


  1. Which ETFs are you using?

    Thanks for the great insights!

  2. Is your count 'legal'? If u have a-b-c-x or w-x, shouldn't if finish with another a-b-c or w-x-y? I see w-x-c.