Apr 25, 2013

Vacation

I am on a vacation for two weeks and I won't be able to post weekly updates in the next 3 weekends. I will post some thoughts when I have time.
Short term the bullish scenario is playing out - see the hourly chart from the previous post. Until the 1565-1570 area holds the short term view stays bullish. This is the line in sand currently.
Intermediate term I think we will see a correction in May.


UPDATE after the close - the current daily chart. SP500 looks very strong and reached its upper trend line..... BUT DJ was a leader all the time and now it looks very very week. Only one strong day for 5 days "rally" - DJ is just testing its broken trend line. The VIX is making third higher low and is green the last two days. I will be very careful with longs. Look at the top in May 2012 - it looks similar and I am sure 90% were waiting for new highs and the result was 10% drop.
If the indexes will move higher we should NOT see more than one or two red days and 1565-1570 area should hold (btw all pauses in the trend since November are with size 23-25 points 1592-25=1567 - the middle of the support range.)
Again with or without new high the next move should be a corretion for several weeks.
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2 comments:

  1. AntonisMay 4, 2013, 11:11:00 AM

    Dear Krasi,
    have been reading your blog for a few weeks now. I really appreciate your approach to trading and your honesty.I would like to thank you for all the effort you put into publishing your thoughts.
    Market appears to be in "euphoria stage", so that it ignores all the cracks around, like they do not matter,...until they do. Next Gann levels to watch: 1622/1632(nearby, a good candidate for a peak) and 1667/1684 (S&P June fut.)
    Happy Easter! from Antonis, Thessaloniki

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    Replies
    1. KrasiMay 6, 2013, 7:12:00 PM

      Thanks Antonis,
      I am giving my best:)
      The market is stretching on the upside to the max..... I have seen this several times since March 2009. My mistake was to look for a logic and there is no such.
      Anyway I think we will have enough opportunities short and long this summer.

      Happy Easter to you too!!!

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