test4

Wednesday, November 18, 2009

STI Updates -- Just a little more

Appears that I was right in shorting, but my emotions caused me to cover at a loss when I could have profited today. Lesson learned: Leverage is ok if your cut loss point is within your means.



I re-did my wave counts today, and discover that we could have a little more upside. How much more, it's hard to say. However, a minimum target would be to reach at least 2790.

Wave (i): 44.64
So if wave (v) is the same as wave (i), 2745 (today's low) + 44.64 is almost 2790.

Market is toppish... Will we really have a year end rally to even greater heights? I'm starting to believe that there might be, but the contrarian in me says no! Don't follow the crowd!

The news reports are clearly getting very bullish. Is that a good thing? I don't think so. News are generally lagging indicators; stock markets usually precede economic data by an average of 5.8 months according to my broker.

How far will wave (v) go....? I'm unsure. But we have to experience extreme optimism for this to occur.

Shall see how it goes. It's definitely not a good time to take on long term longs. I'm expecting a minimum of 300 points correction soon... It should be time for a nice short term rebound at 2745 resistance turned support line.

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