Monday, November 25, 2013

Market Update

A correction started today but it's too early to tell if it's a minor degree corrective wave to prepare the market for one more high or the beginning of a bigger correction. So we'll just have to be patient and see how the market reacts when it reaches the Trend Average. Most people seem to be convinced the rally will continue as the VIX is trading near the lows so perhaps some sort of surprise is coming or traders will use the tapering excuse to start selling off the market. I am holding on to my VXX and not adding any more positions. I am not bearish, just mindful of the fact that this market needs a healthy correction to bring fear back. Once you start seeing the doom and gloom gang in the news then you'll know the market has probably reached a bottom and ready to rally. What's interesting is that these permabears never appear when the market is actually topping.

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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