Tuesday, February 9, 2010
Stocks Make New High; I'll be Selling Weakness Against the Recent Highs as They're Made
I was wrong in thinking that yesterday's high marked the top of wave ii. It appears that decline late yesterday afternoon was just a B wave. Today's sharp rally is part of a C wave of wave ii. With a wave iii of (iii) at our fingertips, I'm a seller of any market weakness with a stop against the recent highs. This may take a few attempts, but the reward will be worth it. The recent decline may just be an X wave, and another ABC rally may occur to complete wave ii, but the risk/reward is too great to miss. It may take a few attempts to catch wave iii of (iii), but I feel that with patience and tight stops, the gains will be good enough to recapture any losses.
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.