Monday, August 19, 2013

50 Day MA

The market closed again under the 50 day ma and at the day's low which is a warning sign to people holding longs in this market. However, I see a 5th wave that sort of resembles a descending wedge so I put some labels on it and we will see if the market follows it tomorrow. Odds are we will see a counter rally to the TA since the market is very oversold so I am positioning myself for this move.

I sold all my longs today when the market failed to recapture the 50 dma but I bought back Google after hours for a better price. Google did fairly well and I made more money trading it than from all the ads on the blog in one month, so we're off to a good start :) I sold my short term FXI longs for a decent profit too but keeping my core long term position intact for the foreseeable future. So should the market test 1626 without bouncing (which I think is slim at this point), I will add to the Goog margin long position using FXI proceeds.

Main S&P 500 Trends*

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

* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

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