Monday, March 5, 2012
Still Waiting For Stocks to Make Tradeable Move; Euro Has Opportunities
Nothing has changed from my post, charts and the wave count remain static. I'm still waiting for a reversal pattern and impulsive move to the downside so I can establish a position. I've been on the sidelines for weeks now, simply waiting. Volume continues to be light with today barely breaking above 700 million NYSE shares. Tough to trade with volume like that, unless you're a daytrader which I am not. One of many signs that this rally has no legs is that volume has left a long time ago. The next move of consequence to provide traders a good solid opportunity should be to the downside. But we have to wait until the market is ready. But I'm on high alert....looking for signs of a reversal, knowing that many others are doing the same so there will probably be a fake out or two to the downside before the real heavy selling gets underway. So as always, I'll be managing risk appropriately and looking for a shorting opportunity.
Learn Elliott Wave Principle while EWI is offering a free online edition of Bob Prechter's Elliott Wave Principle - Key to Market Behavior.
The bottom line is that the euro appears to be falling impulsively. Being so early in the decline makes it hard to determine the degrees of trend with high confidence, but the subdivisions of the move is undoubtedly impulsive nonetheless. So the path of least resistance for now is down. The euro should not exceed 1.3485 in the near future, so shorting with stops just above that level seems like a good opportunity to me, especially if a big rally occurs from current levels which would allow me to short at a better price.
Who's Going to be President? Ask the Stock Market.
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.