Tuesday, July 21, 2009

Wave 2 in Latter Stages; July 21, 2009

I haven't posted much because no opportunities have presented themselves until today. The straight line rally from last week should be finalizing now as many indicators are oversold and one can can't 5 waves up complete. And today's weakness drew me in to take a small short term short position on the S&P. But the rally later in the day put that play in serious jeopardy. The stock market needs to fall tomorrow early for the short term bear play to remain intact.

I don't think wave 2 is over yet, so this setback, should it occur, will only be temporary. I expect the S&P to get into the 1000-1100 area before topping and collapsing massively. Any new significant develops in that respect I will post here. Until then............I wait.

2 comments:

Gustavo said...

Hello:

It's me another time.
I am waiting the next leg of the bear with a little position in FAZ.
I pay 48$:-(.May be I must add to my position for average the entry price contrary to the books...
In the same time can you post the big picture for some forex pairs?
May be it can help me with my daytrade in this market.
Thank You!

Todd S said...

Hi Gustavo,

I'll try to post a EUR/USD long term chart soon.

Todd

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