Thursday, May 30, 2013

Downside target revised to 1590-1600 for C wave

The somewhat conservative bearish 5 wave count is now out since the market made a higher high but the chart now looks actually more bearish. I wanted to write about this alternate scenario yesterday but I didn't have time. I was going to say that the 5 wave count I had been following was considered conservative given the fact that the alternative called for the bearish W4 I was tracking to be labeled a bearish W2. So now that this is the main count I am following, the new projection is 1590-1600 which would put the C wave around the 1.618 level of A. The alternative bullish possibility is a W4 triangle but since I follow the trend, I give the bearish possibility a higher chance.

I ended up position trading VXX in the morning and sold within a few minutes for a decent profit. So I closed that position and started a new one at $18.60, which is couple of cents better than the one I had before. Now I just need the very bearish count to materialize to test out the calling system I set up over the weekend and make some vacation money!

Main S&P 500 Trends

Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish 

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