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Tuesday, October 9, 2012

Correction


The market continued its sell off today and in turn invalidating the 5 wave count I had been following. It does seem however that there was a 5 wave count on the last bullish wave and current sell off remains a correction until critical levels are breached. Some important key levels to watch are a) 1439 and b) 1430. If these levels break then the market is going for the 50 day MA for sure and even the 200 day MA at 1366 as of today. But assuming we are going much lower is still premature until the trend actually changes. The market closed somewhat comfortably under the trend average and it remains to be seen if the market can re-capture it on the next bullish wave.

I will be re-hedging again if the market fails to capture the TA on the bounce, otherwise I remain 100% long.

Long Term Portfolio: 100% Long
Short Term Trading Strategy: Closed VXX @8.98 as of 10/01 at break even. Re-hedging if market loses TA support.

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