“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC


Thursday, 29 January 2015

29 Jan 2014 - Volatility Evident

What can we take out of the market today?

1 - Bear flag seems to be forming or still in play.
2 - Bulls have a chance if 5 waves up is followed by 3 wave correction then rocket up (Chart 3). Note that a rocket up means we need an OB scenario.  So look for this like we looked at the OS scenario yesterday.
3 - MACD Daily chart still weak with ST still down (Maybe lagging but stay the course depending on your timeframe).
4 - The move today is impulsive and looking 5waveish another view point to look at.

An exit of todays 60min exit of the OS stoch. would have been the best play, then wait for a turn down again since ST still in Bearish mode.


Note:  I am not forcing the current down move as a 1st wave until I can see more downside.  But a count that I have exists for this option.

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