Monday, February 10, 2014

Short term trend confirmed bullish

The market refused to pullback much today and instead it continued its march towards the 1800's. Seems as if recent worries have all dissipated and I even see "experts" who were calling for a major correction on the news last week capitulating today. But the potential scenarios remain the same and the key to what will happen next will be the pullback to the 1768-1772 support level. I ended up selling VXX today for a negligible profit (16/18) when I saw the triangle on the micro count forming but I will be buying it back hopefully at the next resistance level which is 1808-1813. One thing I did notice is the 5 micro count from the 1792 low has a target of 1804-07 so I guess I might jump in a bit earlier tomorrow just in case (assuming the high is not made in pre-market) as it would be a nice ride if the market reversed to 1770. Last but not least the Trend Average has turned bullish so the IHS might just come to fruition, specially now that some people are noticing the emerging market panic was about nothing. As an example I am posting an article from CNBC (which is one of the main culprits for misinforming the public), where the author wonders why China wasn't falling.

Why China stocks are dodging the global market rout 

He forgot to mention or notice that the SSEC did not react to the PMI announcement at all, which is the main excuse markets started to sell off in the first place. In fact, the SSEC had been rallying and after consolidating for a few sessions it rallied 2% yesterday. So without the emerging markets worry in the background, the index might just be able to turn things around and postpone a bigger correction again.

Short Term Trend = Bullish
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.

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