Wednesday, May 14, 2014

Bullish Nested 1-2?

The market pulled back today enough today for a W2 so I removed the micro count labels to make it more simple. Technically, one could argue there were 5 waves completed yesterday at the 5 minute level so I am not going to worry about that too much right now. What we have to look out for is the possibility of a bullish nested 1-2 as all indicators are bullish and calling for higher highs. However, any further pullback must not breach 1867.02, if the market gets even close to that level and bounces from that level it will be forming a potential Head and Shoulders and possibly start the summer correction.

Today I had the chance to calculate trends and look for patterns on the RUT, NASDAQ, DJI, Gold and Brent Oil which I have never really tracked and a couple of them have interesting patterns. The ones that stand out for bullish opportunities are Gold and Oil while the RUT looks very bearish as well as the NASDAQ (to a lesser extent). I haven't been able to label possible counts but I have all the trends mapped out and I will probably shopping for an RUT ETF to load up when I find a lower risk/higher reward set up, specially if things get worse. Trends and further analysis on all these markets are on

I ended up position trading my hedge today and hopefully I'll be able to improve my cost average on it in the next few days.

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.

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