The market did top yesterday as the 5 wave count on the chart indicates. But I am leaning towards labeling yesterday's top a bullish W3 due to the lack of profit taking. Arguably, there is a small broadening top in place but I get the feeling the market is just buying time before launching another assault on 1475 in the next few sessions. Had Google not dragged the Nasdaq the way it did today, the market could have conceivably challenged the 1475 resistance. And btw Google happens to be one of the very few stocks I would actually buy to own in the long term, their margins are being affected by its mobile ad platform but they have many other potential revenue streams. Fundamentally, Google's technology is second to none. I've worked with Google search on some projects for many years and no other online platform comes close to them. So if anything, I might end up buying some of its stock if the sell off continues there.
I ended up going with my instinct today and I closed my VXX position at 33.12, technically just a break even.
Long Term Portfolio: 100% Long (Emerging Markets Only)
Short Term Trading Strategy: Closed VXX @33.12 as of 10/18 - Bought VXX @33.10 as of 10/17. Waiting for a 5th wave to materialize to buy back VXX or a triple SP500 short.
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