Wednesday, April 8, 2015

Elliott Wave Stock Market Update - April 8



















The market has refused to go down and today's close brings the Trend Average back to bullish again. If upper resistance breaks, then a rally to all time highs will be likely. At the same time, the recent lower highs sets up the market for a stronger bearish wave. The intermediate trend remains bearish and a break out will bring it back to the bullish side, essentially a whipsaw of the signal, which hasn't happened in last 3 years. I still hold VXX but getting ready to sell it and book the loss if resistance breaks. I also position traded oil and raised my stop to my buy price last week, which already guarantees me a profit because of the intra-day trade today.

Lastly, markets in Asia and Europe look like they will continue their rally. Specially China and HK which are manic at the moment, so selling in the US (in the event of support breaking) might be limited given overall sentiment. I just need China to rally 30% more to reach my retirement goal and from what I see, it might just get there by the end of this year. This is a huge deal for me as I've dreamed about retirement since I was first exposed to the idea of compounding interest back in my finance class in college. I remember that particular class like it was yesterday, I remember the teacher telling us that if there was one class we really needed to pay attention to that semester, it was that particular session. Fortunately, I really paid attention that day and started to make it a goal to retire as early as possible. I should go back and find him to thank him.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com


Short Term Trend = Bullish
Medium Term Trend = Bearish trend being challenged
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 whipsaw

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