Friday, March 21, 2014

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.

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