I currently hold 2% SSO and 2% EUO. I'm flat futures.
I've been expecting a break in the linkage between stocks and the Euro and have been long stocks and short Euro waiting to show wins in both. The dollar keeps declining and I'm not buying on dips. The hourly M/As are still relevant. The first hourly M/A was broken to the upside by the Egyptian uprising, but I did not buy the news market. If this M/A is broken sans news I'll buy it (blue line +.29%).
EWI expects the stock market to decline immediately. I1 disagrees and is so far correct. Until the DJI breaks critical support I will buy the dips. 11,793 is still the critical point and the Egypt scare sent it to within 10 points of that. SPX and DJI have completed wave counts (5 up from July and 3 up from 3/2009) so I1 has a lot to overcome. New highs will bring out the talk of extensions to the counts. Until new highs I sold 2% SSO at 51.24. I'm now flat stocks.
Hi Steve, how is the critical support of 11,793 identified.
ReplyDeleteThanks,
A trading newbie
11,793 is 1.35% below the last break below the DJI critical support M/A, 5-minute, 370-unit. This occurred at 11,953. 11,793 will remain until the M/A rises above 11,953 again. At this point the stock market remains in bull mode.
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