Monday, December 2, 2013

Trend Average Test

The market finally tested the Trend Average today and we now have to see if there will be a bounce or follow though selling to start changing the short term trend. There is an obvious Head and Shoulders set up targeting 1791 and my early micro waves projections have 1785 as a target if the selling today is part of a bearish 5 wave count. Obviously, if the market stages a rally then we'll see have to keep extending the 5th wave but it is time for a correction.

My VXX position is looking good and under normal circumstances I would have taken half the profit today at the TA test but I am looking for a change of trend to maximize my return. But if I am wrong on a correction then my stops are at break even so no loss there.

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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