Tuesday, January 14, 2014

Counter Rally

The market tested the Trend Average and some today by staging a strong counter rally that looks as strong as the bearish wave from yesterday. However, the burden is still on the bulls as anything less than 1843 is just a bounce from the lower low made yesterday. Also, on the micro count there are 5 waves complete and that could mean today was the A leg of a corrective move or even the end of the counter rally so we'll just have to wait and see how the bears respond. I ended up buying back the VXX I sold yesterday cheap since whatever reason that existed yesterday for the sell off was completely gone today. But fear will come again and I will probably be selling my hedge again to pay for my home improvement projects.

Short Term Trend = Bearish trend being challenged
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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