About this blog:

CURRENT MARKET TREND: Up 5/27/16 @ 2090
Stop-loss 2026






Tuesday, June 7, 2011

It's Time To Buy

I apologize for my absence as of late, I've been dealing with some family issues. People are becoming extremely bearish as of late and that has me in the buying mood. Looking over a few charts tonight made me turn even more bullish near term. At least we can catch a sizable correction to the upside if not an entire bull move. The first chart getting me in the buying mood is that of the McClellan Summation Index. It recently broke below my bull support line, but is in an area where it has reversed some more.


You will also notice that the SI is coming to another bull support zone of the downtrending white line. This has me near term bullish.

Another reason I'm getting bullish is because of the inverse correlation of the USD and the equity markets. I believe the US Dollar put in a 4th wave up and is now in a 5th wave down.

The chart shows the dollar breaking back down under the 1-3 channel line drawn off the 2. If the inverse correlation holds the equity markets should soon reverse course.

Finally, my current wave count has either 5 waves down ending C of Y in an ending diagonal yesterday, or 1 more low coming to end wave C down. If we get a new low around 1280 it would be the latter of the counts. My bearish count is also looking for a wave 2 retracement upward. When a bull and bear count align in such fashion (both looking for upside) it's a good risk/reward situation in my book.
Today also gave me an hourly buy signal according to my ADX, which means a low is either at hand or within reach. I went long on the wedge break today and will add to my long position on new lows.

Thanks for reading.

geno0010

The

Trader

1 comment: