Sep 6, 2014

Update

Choppy week, it looks like wave 4 and wave 5 should follow. We know now the line in the sand is 1990.
It was easy to trade so far, but when this wave up is over I think we will see significant correction. I think at least 15%-20% and the other option is - this is the top of the cyclical bull.
Even the most bullish case should not be underestimated - this wave(from the low in February) is roughly 300 points and if we see simple correction 50% or 150 points expect a low around 1850.
So plan accordingly, if you see the price moving bellow 1990.

4 comments:

  1. Krasi, what is your view of TLT? Do you think higher highs are coming after the recent pullback? Thanks for sharing your knowledge with this blog.

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    1. Hi, I do not follow bonds, but when look at the chart I think this should be a pullback to 112-113 max 110 and move higher should follow to finish the entire move from August 2013.

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  2. imo, we are going to go back up and make one more new high - if that happens, what is your upside target on spx and when do you think we get there - this month or next ?

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    1. Above is open space and I can use only some Fibonacci projection - if 5 of 5 is missing target should be 2025 and one week.
      I see some confusing signals and I am more in "wait and see" mode now:)

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