Market Update

I had a busy day today and will keep this update short. Basically, the market is again testing the 1874-83 resistance level and my guess is that it will break sooner than later. The market is challenging the ST bearish trend and if the market continues going up in the next session it will probably turn Bullish.. so watch those shorts.

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.

Market Update

The market decided to break the triangle to the upside and the 50 day ma remains untested (in the cash market) despite several bearish attempts in the last few weeks. In fact, despite a bearish Daily MACD crossover which is one of my preferred tools in anticipating important trend changes, the market closed around the same level as it did when the signal first occurred. And if I remember correctly, this is the first bearish Daily MACD crossover that has failed to test the 50 DMA in a long time. So what this tells me is the market is forming a base to rally past 1900 sooner rather than later if support continues to hold.

The latest waves have been somewhat hard to label but what looks clear to me is that we've seen an ABC move since the all time high. The length of the wave I've labeled C is exactly the same as the A wave. Today's gap up had the look for a bullish micro W3 but it faded into W1 territory, so this implies we will see another ABC move or today's top was W1. Either way, the bulls are showing their resiliency.

I didn't trade today as I don't want to take unnecessary risks given the bearish TA and support levels holding. My China positions have done very well this past week and hopefully I will add more China and possibly Russia in the next couple of weeks. I heard Putin called Obama today (which is rare, usually it's the other around) so perhaps this will give reasons to global markets to rally with joy early next week.

Have a Great Weekend!

Short Term Trend = Bearish
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.

Potential 50 Day Moving Average Test

The market put in a lower low today at 1842 and went into a triangle the remainder of the day.  One could argue for a bounce from here since we have what looks like an expanded flat in the cash market. However, the index is so close to the 50 DMA and today's triangle gives the market enough of a correction to put in another bearish leg to at least 1834 or basically the low that was put in couple of weeks in pre-market.

I am staying in cash and will go long if we get the 50 DMA test as there is a good chance the market could rally hard from there (to the TA). If the prices break out of the triangle to the upside then the 50 DMA target will be invalidated for the time being.

Short Term Trend = Bearish
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.

Market Update

The market got up to the level I was speculating on for the past few days (1874) but then reserved again to test the neckline of the potential Head and Shoulders. I continue to hold the view of a sideways correction and a drop to the 50 day moving average would put in a C wave at the intermediate level, with A being the leg that tested the 50 DMA in premarket couple of weeks ago. The reasons for the sell off today was not very clear, I've read  the reason were concerns about Ukraine, a huge bearish options bet in the last hour and the manufacturing report. Basically, nobody really knows.

I attempted an XIV long around 1856 but was stopped out at the break of 1854 so another losing trade (23/29) but at least the loss was minimal. I get the feeling the market is about to break out of range and I will take positions then to be on the safer side.

Short Term Trend = Bearish
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.

Market Update

The market gapped up at the open as I had been expecting/hoping but fell a little short of the micro 5 wave count target (1874) by putting in a high of 1872 before reversing and making a higher low at 1856. Going by the same calculations I've been using to project wave prices, if 1872 is W1 of a bullish count then we're looking at 1905 more or less as a target. However, I can also see a Head and Shoulders targeting 1816 and if the wave from 1872 to 1856 is a bearish W1 then I have the 50 Day Moving Average as target, which today is at 1832. As I said yesterday, this whole thing is looking like a sideways correction as there has been lack of bearish advances despite the many reasons for a more pronounced correction. But we'll have to see how the market reacts to the trendlines I drew on the chart, higher lows and continued all time high challenges will result in a strong rally eventually.

The market did as I expected yesterday but I lost on my pharma trade (23/28). The stock started the day well ahead but then it plunged below support for seemingly no reason. So I got stopped out at a loss and now I am reminded of why I should not trade individual stocks.. specially smaller ones. I am going to stick to volatility and my ETFs. I will just wait until I see a set up to take a new position.

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.

Market Update

The market continued to sell off today and invalidated the possibility of a nested bullish 1-2 set up. However, support at 1850 held quite well and given the micro count on the bounce it looks like it wants to go for 1874-83 again. If we get this bullish way to resistance then we might see an Ascending Triangle that will target 1927. Obviously, it is too early to tell but I will be trading it as such until key levels break. So far the market has been correcting sideways since the bearish daily crossover on the MACD so this could be the base for another substantial rally to come.

I bought the pharma stock at near support today so I am all long. The close was under the TA and the ST trend continues to be bearish so it is risky but as long as support holds I am looking for further upside.

Short Term Trend = Bearish
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.

All Time High

The market decided to continue rallying early morning and a new all time high was put in the SP500 before reversing and testing the Trend Average. This move invalidates the H&S I had been following so I am now looking at the completion of the IHS to 1909 or the start is a C wave that will test 1834-39. I can see the micro 5 wave counts on several waves but it's hard to label these higher degree waves until we get more clarity. The TA continues to decline so there trend has not changed yet but a higher high means the bullish side is taking back control, even if the high was marginal. In addition the bearish pattern was invalidated and the bullish one remains in play so there is a higher probability the market wants to go higher until a lower low is made.

I stopped out of my VXX position (23/27) unfortunately, I was having a pretty good run. But I am waiting for another trade set up before going back in long or short on my ST account.

Have a great weekend!

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.

Market Update

The bounce today was stronger than I had expected but I am still leaning bearish since resistance is still holding and the TA has not turned yet. The market could be setting up a flat, which implies another leg down to 1850 at least or it could be setting up a bearish 5 wave count. If the market manages to go above 1874 then a challenge to the all time high will be likely and a new high invalidates all bearish set ups. I am holding on to my VXX position  but will be ready to exit if the IHS becomes obvious. There are plenty of excuses to sell at the moment but apparently some bulls remain unfazed.

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.

Close under the Trend Average

I think the market has enough momentum to hit the ideal right shoulder of 1867-74 of the Head and Shoulders I speculated about last week. 

And the market hit the exact top of that range by putting the high today at 1874 before selling off to 1850 and then bouncing back to test the Trend Average but closing back under the TA. I was looking for a 5 wave count on micro waves but I only saw 3 waves to 1850, so I am assuming the bounce is an X wave and the sell off will continue after that is done. Once the market is firmly under the TA, I'll be looking at key support levels to take profits but as it stands it looks likely that 1839 will be tested and as I said yesterday if the H&S completes we are looking at 1793 as a target. The bullish scenario I am keeping in mind but not really considering until the market trades back above the TA is the Inverse Head and Shoulders formed today that targets 1909. A break of 1839 invalidates that pattern. So far the H&S speculation from last week has been on the $$ so hope that continues..

The fundamental excuse for the sell off was the speech by Yellen which I mentioned yesterday (I get the feeling the market was going to sell off regardless thus my title post "now the sell off" last night). The announcement that rates might rise sooner than expected is a negative for equities and this might continue to be the excuse to sell in the next few days. Also, as I have been saying, it is clear to me now the Feds believe the economy is strong enough to be on its own. So the bull market we have had will now depend on the economic performance of the economy (as it should be!)  and not liquidity. Good economic numbers will support further rallies, bad numbers will cause corrections. The days where bad news was still good news are probably gone.

I am holding on to my VXX position until I see a g$$d reason to sell :)

Short Term Trend = Bearish
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.

Now the sell off?

I posted the following exactly one week ago:

One possible bearish scenario I am keeping in mind is a sell off that will test 1834 and then bounce for a H&S formation, so a sell off to that level should create a good counter trend trade opportunity.

And today the market reached the ideal level for the right shoulder of the H&S after testing the equivalent of 1834 on Sunday's pre-market. The question now is whether the market will follow through on the sell off. The last time we had a similar H&S the pattern failed and the market kept going up until the it got invalidated. But with some of the negative news in the background and the Trend Average still technically bearish, there's a decent chance the market will go down to the H&S target of 1793. Maybe what the Fed says will be the excuse?

I ended buying the other half of my VXX position and I will be holding unless the H&S pattern gets invalidated on anything above 1883.55

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.

Head and Shoulders Forming

The market tested the 1828-1834 level when pre-market opened on Sunday but then it reversed overnight and broke out of the wedge as I had been expecting last week. Obviously, this rally is just a bounce until it can recapture the Trend Average which is now down to 1864. I think the market has enough momentum to hit the ideal right shoulder of 1867-74 of the Head and Shoulders I speculated about last week. As it is there is already an H&S targeting 1790's but it would look even better if the market stopped at the shoulder's resistance levels, that plus it would allow me to get a better price on VXX :)

I sold my ST longs for a nice profit again (23/26) and I bought half my usual VXX position. Given the fact the ST trend is negative and the issue with Ukraine is far from clear, I'd expect the market to find it challenging getting past through resistance. With that said, if the west comes with light sanctions against Russia it might give the markets a reason to rally as the economic background in the US supports further upside. To me this is not about QE or taper anymore, it's about the fundamental economic picture of the US and the world for that matter.

Short Term Trend = Bearish
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.

Market Update

The market made a slightly lower low today and the market is wedging so perhaps the bounce will come early next week to the levels I mentioned yesterday. The big question is how the markets will react to the referendum in Crimea over the weekend as it could serve as an excuse to rally or continue the sell off. My guess is that the EU and the US will give Russia a slap on the wrist and move on as they're risking a lot for something that in imo is not that big of a deal in the grand scheme of things.

I didn't do any trades today as I am waiting for upside to sell my ST longs or further continued downside to buy XIV. Hopefully we'll get opportunities early next week.

Have a great weekend!

Short Term Trend = Bearish
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.

Short Term Trend Confirmed Bearish

I was wrong in my assumption the market wanted to rally today as instead we got a clear bearish wave that is either an C or a W3. The low today is close enough to the 1834 level I mentioned a few days ago to call it a neckline for an Head and Shoulders that targets 1793. Obviously, if this is an ABC count then the market will rally from here on but if this is the potential H&S then the market should test the TA and then sell off in 5 waves to that level. Alternatively, the market could still put in a bit more downside before a bounce and those levels are between the 50 Day Moving Average at 1828 to 1834 support. The reasons for the sell off has been uncertainty with Ukraine and China and with the Crimea referendum taking place this weekend, the political situation has the potential to escalate substantially on Monday. China on the other hand is really not a big deal, if things were so bad the Chinese market would not be at the same level it was before all the "bad" news came out. My retirement depends on that market so I know that economy well.

Since I was wrong, I went ahead and went long with the pharma stock I sold yesterday at support. So hopefully we'll get a good bounce so I can sell that stock and buy back VXX as close to the Trend Average as possible.

Short Term Trend = Bearish
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.

New highs still possible

The answer to my question was answered today as the market sold off and made a new significant lower low. However, despite the correction, the gap from March 4th remains and the market rallied enough to close around the Trend Average. So I lean towards a stronger bounce here given the fact that all the bearish waves have made little downside progress in almost a week of selling and despite all the seemingly bad news. I will move to the bearish side once the trend changes, until then I see a potential micro 5 wave count to 1889 more or less so new highs are still possible if not probable.

I sold my pharma long from yesterday for a good profit and made some lunch money with VXX by day trading it (22/25). But given the fact the TA is being challenged, I am on the sidelines waiting for clearer set up. If we get that higher high, I will be loading up on VXX. If I am wrong on the high, then I will be go long on the pharma stock if I get it back at a good price.


Short Term Trend = Bullish 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.

W5 truncation or end of correction?

The market challenged the all time high today but fell short by a point and went straight for the Trend Average test. The 5th wave on the chart looks truncated but at the same time I can see a Zig Zag correction so I will pay close attention to how the market holds here at the TA. Failure to close under the TA just means the high will be taken out in the next few days, closes under the TA will reverse the  short term trend but until that happens I will trade following the TA which are still green. One possible bearish scenario I am keeping in mind is a sell off that will test 1834 and then bounce for a H&S formation, so a sell off to that level should create a good counter trend trade opportunity.

I was very tempted to buy VXX today but I decided to wait. Instead I bought a small long position in a pharmaceutical company, which very rare for me but I figured it's a low risk trade at these levels.

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.

Market Update

The market ended up making a slightly lower low today in what seems like a Double Zig Zag due to concerns on Chinese exports. But the general bias remains the same and I expect a new all time high as soon as tomorrow if the micro count I have on the chart is correct, which basically targets 1890s. The market has had plenty of excuses already to  close the gap from March 4th but it looks like it has just been buying time. However, once this coming bullish wave is in then I will expect the market to test the TA at the very least.

I bought some more Chinese shares today and I hope they remain weak for at least a month or two (so I can add more). The main reason for the market drop today was the export numbers from China (which implies weak foreign demand and in turn a global slowdown) but something a lot of people don't realize is that those numbers are completely distorted due to their New Year. So the true export numbers don't really come out until next month and the concern is all speculative. I also plan to buy VXX on the coming rally and I might buy twice my usual position.

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.

Room for more upside

The made a top today but it seems like a very short term top so the market could stage a rally as soon as Monday. Technically there is a chance the market will start a bigger correction but I think it's less probable given the fact the market has been just buying time to consolidate a base to rally from for the last few days. So unless there are some really bad news over the weekend, the bias is to the upside. There is a potential bullish 1-2 on the micro count that targets 1890's and if we get these 5 waves then it will be very likely that we will see meaningful market top and a market correction to at least the Trend Average. Obviously, the market can keep doing W4 like corrections but at least they do give you the opportunity to make some money when patterns are completed.

Given how resistance held today and how this looks like another W4, I ended up selling my VXX position at a profit (20/23) and will hopefully buy them back early next week at a much lower price. 

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.

Potential Market Top

The market rallied and made a higher high today as I had been expecting so technically there are enough waves to call a market top (short term top most likely).  However, I also see the potential of another impulse to new highs by switching the micro W4 label around so the market might be able to reach the 1900 level. Fundamentally speaking, I think it's crazy to be buying at this point while the US is sending a destroyer to the Black Sea. Not that there will be a war anytime soon, the problem is there are plenty of excuses for the market to sell off. In fact, a single gunshot from the Russians or the Ukranians would do the bear job. My political guess is the Crimea will go ahead and hold a referendum where they will vote for secession from the Ukraine, that vote is on March 16th so the market could continue to rally up until that time. Once the results are in, the Crimeans and Russians will argue that Crimea's referendum is more legitimate than the government of Ukraine (not elected by popular vote) and that's where thing could get ugly. Putin's academic background is International Law so he probably had this in mind before he "accepted the invitation" to Crimea, he knows he can then use the military force and gather international support since he'd be acting to "defend democracy". If you think about it, he actually would have a point since the region elected the President that was removed without elections and they do not recognize the current government.

Anyway, I bought back VXX near the market top today and almost sold it for a profit but I decided to hold. If the market gets to 1900 I will be adding more.

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.

Higher High Coming

The market managed to put it a marginally higher high early morning before going into what looks like a sideways correction/W4. So chances are the market is forming another base before putting in another bullish leg to another high before any other significant correction. In fact, I won't be surprised if the market is able to spike to 1900 since there seems nothing can stop the market at the moment.

I ended up selling VXX 19/22 for a profit and will be buying back on the next bullish leg. I'm having an unusually high winning trade rate this year doing mostly counter trend trades and I think the key has keeping my greedy side in check. Hope I can keep it going..

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.

Another All Time High

Another day, another all time high.. I was completely wrong in assuming the market would find it hard to continue its bullish advance with the current situation in Ukraine. The market simply doesn't care too much at this point and any negative news are just being used for these quick corrections that get bought. The wave structure from 1737 is basically a bullish mess, there is no W2 to speak of but we've gotten 4 quick corrections that look like W4's, so it's just one W4 after another.. a real bear killer. But at least we have the Trend Average to guide us through the madness as it has been bullish for almost a month now.

With that said, I see micro 5 waves from yesterday's low so we will get another short term correction as soon as tomorrow. Whether it is another W4 or a W2 remains to be seen but I'm assuming the market will run out of steam at some point. And given the micro 5 count, I decided to buy back VXX to hedge my ST longs for a quick profitable trade (hopefully).

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.

Market Update

The market sold off today on news over Ukraine but the bounce of the low was somewhat strong so I won't be surprised if the market tries to challenge the closing all time high again (1858). The situation in Ukraine will only get more interesting as Putin will not be backing off and I am sure he made his Geo-political calculations long ago on how the world would react. This whole Ukrainian crisis originates from NATO's invitation to Ukraine to join the treaty, which essentially puts pro-western military bases right on Russia's backyard and ancestral homeland. In countries where bloodline matters more than borderlines, it's easy to see why the Russians are doing what they are doing and I won't be all that surprised if Putin decides to go for other Russian regions of the Ukraine if pressured too much. And given this Geo-political  environment, the market might find it challenging to continue its bull run. The market closed right on the Trend Average today so all signals remain bullish but I for one will be waiting until I see further clarity. An ETF that is already very attractive is RSX (Russian ETF) and if that plunges even more for whatever reason, I will be buying lots of it as it is ridiculously cheap.. Whether Ukraine splits or not, in the end they will find a solution.

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.