aarc's  Instablog

Send Message
  • The Angels Sing ... 0 comments
    Jan 3, 2014 4:30 PM

    A very good year with excellent finishing touches marked by an obvious profit taking knee-jerk reaction as the first day of new year (2014) trading commences.

    SnP500 potential short-term future price actions remains a mystery to date. But for the purist EW'ers it is a nested 1-2-i-ii-iii with the iii-rd either still in progress or already has completed. To be followed by the iv-v-3-4-5 waves for at least a 9-waves rally toward 2102 as Nominal Target for a complete 1-2-i-ii-iii-iv-v-3-4-5 complex rally.

    >> SnP500 Daily: http://img15.imagefra.me/i513/aarc/141u_a86_ubk5c.png

    Under SOP TA; a breakout rally above the last high of 1849.44 should result in a short-squeeze and presumably another strong rally. However, the intraday squiggles indicate possible missing waves towards the 1862 target before the pink iii-rd wave completes.


    Trading Strategies:

    Trading strategy in early January 2013 (Jan 8, 2013 Instablog) was an easy one since a vertical strong rally happened after a deep pullback in Dec 2012 caused by the Sequester Debacle. The sequester problem was solved in Dec 31, 2012.

    This time around;there was no crisis what-so-ever in December 2013 to buy stocks at significant discounts (Rule of Alternation?).

    Thus, chasing this rally is far more suitable for the best-of-breed Trend Traders.

    In this regard; I would prefer to recommend the better trading strategy = Wait and Watch what will happen next.

Back To aarc's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Most Commented
  1. The Hope Trade ( Comments)
  2. Somewhere ... Over The Rainbows ( Comments)
  3. The FOMO Trade ( Comments)
  4. FOMO Trade Redux ( Comments)
  5. Chasing Rainbows ( Comments)
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.