Wednesday, April 13, 2011

4/13 Daily Commentary

The stock market made a 5 down which clarified the wave count a lot. 
The DJI critical M/A envelope (1.35%) held right at today's low, 12,225 and 12,227 1-minute close.  I've seen this kind of precision in the past and my trading rules revolving around the critical M/A are:
1) buy on the M/A
2) buy 50 points below the M/A
3) buy 10 points inside of the envelope.

I1 peaks Tuesday and with a clear wave count I am comfortable holding long.  YM futures below 12,150 would indicate that tomorrow's open will take DJI below the envelope threshold.
I'm long 8% SSO and 1% NQ futures.
Commodities cracked Monday and Tuesday which took stocks down with them.  Growth forecasts are being cut back.  A bounce back in commodities should carry the stock market with it since they are all driven by excessive money growth.
One more high in silver should be all it has left.

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