Wednesday, July 6, 2011
Medium Term Outlook for Stocks, Euro, Clearer than Long Term
Internals were flat today and volume was extremely low at 819 million shares on the NYSE, so enthusiasm to buy the rally here has waned. I think that a small decline or some sideways action the next few daysmight be in order.
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Either way, I have no reason to abandon the bullish outlook for stocks in the medium term. Aside from some sideways action or a small pullback at resistance here, I think the markets are in an uptrend and the bullish side should be played when opportunities arise.
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I'm being very speculative here by labeling the euro a triangle above, but until a new swing high or low is established, the price action is telling us it's consolidating which is oftentimes a triangle in EWP terms. So I'll take a chance and follow this count. Now this is a bullish triangle so a sharp thrust higher should get underway in the next few days once wave ((e)) ends. So be ready. But a break below the wave ((c)), and especially wave ((a)), lows will negate this triangle and open the door to further selling in the euro.
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.