Wednesday, March 26, 2014

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.

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