Friday, September 20, 2013

Market Update

The market finally had a somewhat substantial pullback today after rallying for almost 2 weeks with very minor corrections. There are many ways to interpret this pullback but I am going with a W4 unless 1704.95 gets breached. The reason I am not labeling this the top of W3 just yet is because of the micro count that starts from 1681. A normal 5 wave impulse calls for 1740 from 1681 so we'll see early next week if this comes through. I ended selling my VXX position at a minor loss since it was hovering around my buy price despite the market being down for 2 days in a row. But the plan is to buy it back even cheaper if that new high comes to fruition. Trading VXX is like playing with fire, so I am extra careful with this one as this as speculative as it gets. And btw I wouldn't recommend UVXY or TVIX (leveraged VXX) to anybody, they are so risky and the decay so substantial they should be illegal.

Have a Great Weekend!

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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