Friday, January 22, 2010
I'm Lowering Stop on the GBP/USD; Stock Market Dropped in 5
I just wanted to make known that I lowered my stop on the GBP/USD short trade from 1.6470 to 1.6295, making me risk only 60 pips now. The wave count possibly has this pair in a wave 3 right now as you can see from the attached chart, so the 1.6295 level should not be exceeded any time soon. If this pair does not tank hard in the coming days, I will exit the position; hopefully at a profit.
On another note: the stock market shot to beneath yesterday's lows this morning, completing a nice 5 wave decline off the highs. This is just more evidence to support that a significant top is in, and perhapst THE top. However, with 5 waves down possibly completed right now, it's possible a sharp snap back rally can ensue any time. But this week's highs sould hold though. I do not want to get cute and try to play the long side here as the evidence strongly suggests there has been a major trend change at this point. The wave count can easily morph into a series of waves 1s and 2s leading us to a wave 3 of 3, or even that this 5th wave becomes extended. Both scenarios would have this market accelerate lower. The trend is down, so I'm aligning myself with that trend only.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.