Wednesday, October 3, 2012

Market getting ready to rally?

It's been almost 3 weeks since the market topped at 1475 and after almost 3 weeks of sell off attempts, the market is less than 2% off its high. Also, the close today was above the trend average and should the TA hold then we can expect a rally to high 1400's at any moment. So so far it seems like my "instict" trade of getting off my hedge couple of days ago seems to be correct. Looking at the chart, we see a series of higher lows (which is bullish). There is however the bearish head and shoulders still in play but the market capturing the trend makes it less likely to occur. So we'll see how the market reacts to news in the next couple of sessions. I am now maxed out on emerging market stocks so hopefully we'll see a mad rally in the emerging world.

Long Term Portfolio: 100% Long
Short Term Trading Strategy: Closed VXX @8.98 as of 10/01 at break even.

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