Friday, February 28, 2014

All time high

The market broke out of the triangle and put in an all time high today as I had speculated on yesterday's post. However, there was a strong intraday reversal due to the situation in Ukraine but the market managed to reverse loses towards the end of the session and close at an all time high. Looking at this technically, the wave could be a 1-2 either way so I'll wait until Monday before putting some labels on it. The market has been ignoring somewhat bad economic news lately but the situation in Ukraine is serious as Russians look determined to secure the Russian speaking region of Ukraine as I think there is a historical significance to them. That and the fact Russia would not welcome a pro west country in their backyard, so this could turn into a conflict in a short period of time.

I didn't commit to any new positions today and probably will avoid the market until there's more clarity. The trend is clearly up and without the Russian situation the market should make higher highs. But Putin doesn't screw around so we'll have to see what Obama's and Europe's response will be.

Have a great weekend!

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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