Apr 25, 2010

Weekly review / Седмичен преглед

I was expecting this week a pullback to begin.... it does not happen, it is not over until its over, right:). I was twice short on DAX shoring the rallies on the small charts, but i have closed the positions at ~6150-6160, because the prices do not want to break the support at ~6140. Nevertheless 100 points profit:) It is not bad playing against the market.

So where are we stand now? - all time frames signal UP, so we must look for long entries. The tricky part is - we are at rising resistance, very extended, very overbought. Every market breadth indicator is flashing warnings. Chasing such market is very dangerous.
For me the smart play now is to play long, but daily trades, do not expect another 1000 points on the Dow. This is my view for now until the market tell me something different.

Looking at the smaller charts, one hour and 15 minutes, I think the indexes have carved out some kind of 4-th wave shallow correction - sideway move on the DAX and a triangle on the Dow. That means we are in a 5-th wave now, but i do not expect it to last very long. Again play long, but daily trades.

And the charts:

DAX hvae broke the rising wedge and now we have a channel

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