Friday, July 23, 2010

I guess it was blue !!!


Well, much to my dismay we broke out on the upside. Why dismay? Because I was not able to put on my long position again. I had been looking to re-enter my longs that were closed out around the 108X SPX range. Now you know how much I love double FIBs and I totally missed that one. Take a look at the blue circle there - double fibs are areas of big importance and it slipped through my fingers.

Now we have a big band of resistence ahead as you can see from the wide blue rectangle but this is supported by a nice cup/handle, double FIBs and the proper pull backs to break on the upside now. Now we pulled back 50% off our highs before bouncing in the last few days - I hate 50% retracement because you never know what it really is until the move has resolved, now we know.

At this point, I have no choice but to wait for this to unfold towards its upside targets. I strongly believe that going into the weekend and of course our big sunday night many shorts will not want to put a position on here so the only sellers are bulls to take profits, but those are no-where to be found as many are expecting a break here. And yes I know, if everyone expects it - well it wont break. That of course is always a possibility but this market has made a point here - and looks ready to go to the moon even if we have some last hour weakness.

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