The market continued its bullish W3 earlier today but it seems to have faded on a W4 after the initial morning rally. And although the SP500 came close to its 4 year high, the DOW made a new high already and in turn confirming the likelihood of a continued rally to higher highs as I speculated few days ago. One level I am watching carefully is the 1454 W1 high so we can have a good 5 Wave impulse to the upside. We have a bearish cross on the 30 min MACD but these usually happen on W4's, so ideally we would see a rally on Monday to challenge the year high again for the W5.
On a side note, emerging markets are officially in a long term bullish trend so I am keeping my fingers crossed. Also, I was checking VXX in the morning to see how much money I saved by getting out at break even and I saw it was a $32 something. Considering I had sold it at $8.98, I thought something must have happened. And it was a reverse 4 to 1 reverse split and the equivalent closing price today was around $8.50.. so it goes to show how dangerous this particular ETF is. One can make a lot of money but it can wipe you out as well if you are not careful. I remember earlier this year I was trading it when it was in the 20's and now is -60%.. The responsible thing to do by the companies issuing these ETFs would be to limit them to certain types of traders as many people don't even know how these VXX work in relation to the VIX. Or at the very least give people a very clear warning..
Anyway, have a great weekend!
Long Term Portfolio: 100% Long
Short Term Trading Strategy: Closed VXX @8.98 as of 10/01 at break even.
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