Friday, October 18, 2013

Another all time high

The market continued its rally today and closed again at an all time high. It looks likely to me that we are dealing with a stand alone W3 and perhaps we'll see the W4 early next week before higher highs.  The DOW is lagging behind in this rally and the SP500 could be in an Ending Diagonal but looking at small caps and technology, those markets have broken out of their potential Rising Wedge pattern so the SP500 will likely follow.

The key drivers to the markets now are going to be earnings, so a decent season will add fuel to this rally. I am still waiting for an entry point since the market hasn't not tested the TA and one thing I will remember next time I see a Bullish Engulfing Pattern is to stay long. And as I've said before, as long as there are no signs of recessions or anything that could lead to a recession the markets will continue to go up.

Next few updates will be from Southern China. I have a cold from recent travels and I'm hoping I'll be better by tomorrow night for a 15 hour flight.. 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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