Thursday, February 6, 2014

5 count or abc?

The market rallied as I had been expecting and spent most of the day battling the resistance level I mentioned last night. But at EOD the Trend Average was tested and the index was able to pull slightly out of resistance range and close over the Trend Average, so there is a slight advantage towards the bulls. However, the bounce from 1737 can still just be an ABC and not a bullish 5 wave count so tomorrow we will find out. I am assuming the jobs reports tomorrow will be the excuse to move the markets and if the ISM report is of any indication, probabilities are we will get a good report. If this is a bullish 5 count we should see 1780+ tomorrow, at the same time if 1755 gets breached the count is invalidated and I will assume the 1737 level will be tested.

I ended up selling XIV (15/17) at resistance as I didn't to risk my profit and I will be looking at upper resistance at 1786-93 to buy VXX or support at 1755-58 to buy back XIV.

Short Term Trend = Bearish
Medium Term Trend = Bearish
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. 

No comments:

Post a Comment