Tuesday, October 1, 2013

Trend Average

The market rallied today despite the government shutting down, which in a way was a surprise to me. But technically speaking, a bounce was due since there is a 5 wave structured finished. Not exactly a very impulsive structure but it looks like the most likely count. And the micro waves today show a 5 count targeting the trend average, so perhaps this is some sort of Zig Zag or a bullish wave one. We'll just have to wait and see if the market can trade above the TA again and bring it back up. But given the fact that Washington will have to deal with the government shut down and the debt ceiling in the next couple of weeks, the fundamental picture doesn't look too supportive of a rally.

I ended up selling my Google position for a small profit and now I am on the sidelines on my short term trading account. I want to see how the market deals with resistance first before taking any new positions since the close was well below the TA.

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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