Wednesday, March 12, 2014

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.

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