Tuesday, October 8, 2013

Intermediate trend change?

The market went for the bearish 5 wave micro count and it got close to the 1650 target, so the entire 5wave count could be done or it could just the micro 3 ending. Whatever the case, I expect a counter rally to the 1670-74 resistance area and what happens there will probably give us an idea of what will happen the rest of the month. The TA has been red for more than a week and unless the market is able to re-capture the 50 dma then I expect lower lows to follow as the Intermediate Trend will probably lost as well. The market has a great excuse to sell off and so far there is no solution in sight to the whole government shut down and the debt ceiling debate. Unless resolved, the rally will come to an end.

I ended up going long on GXC when I first woke up because of a successful test of 1670 but by the time I woke up again and the market had broken support and had dragged down my stock. So I am officially holding a bag now but it's not too bad and I am sure I will get out of it in green, perhaps on the coming bounce.

Short Term Trend = Bearish
Medium Term Trend = Bullish Trend being challenged
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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