Wednesday, November 27, 2013

Rectangle Top or Consolidation?

I guess traders did not bother to take profits today but instead have been buying options to hedge as the VIX has gone up but the market remains in a tight trading range. My VXX is actually in the green so I am having one of those rare "eating the cake and having it too" moments. The market is either topping in a rectangle pattern or is simply consolidating again for more bullish waves to come. You guys already know what I think and as I have said before the test will come when the Trend Average gets tested. A successful test and I am out of VXX but waves call for a change of trend so we'll see.. the suspense continues but I am actually enjoying it :)

Have a good Thanksgiving to those celebrating tomorrow.

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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