Monday, September 23, 2013

4th Wave?

The micro 4th wave I was tracking did not come to fruition and instead I now a completed W3>W1>W3 of LT Int W5 finished at 1730 and I am assuming we are seeing the first leg of a W4>W1>W3>LT Int W5. This is the first time I use the ">" symbol to mean "of" and obviously this is my own creation to better pin point a wave withing a series of waves. Tomorrow we could see 1695 tested for the final bearish micro 5th but if that breaks then the next layer of support is in the mid 1680's. There is a good chance the market will test the 50 day ma at some point during this correction so we'll see how this count evolves. With Syria and taper fears out of the way, the next excuse is the debt ceiling debate which if resolve would be the perfect excuse for yet another rally to another new high for the year. A deal must be reached by mid October, so exactly 3 weeks from now. And I won't be surprised if we get a repeat of what happened in December, where a deal was reached the very last minute. Republicans want to give Obama a hard time on healthcare, my guess is Obama won't budge. I just hope they don't mess with my mortgage interest deductions!

I will be going long tomorrow if I see support tested, just not sure what to buy just yet.

Short Term Trend = Bullish
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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