Monday, 19 November 2012

10am update - original outlook on track

A few weeks ago I set out a very broad outlook, and it remains on track. With primary target sp'1345 hit, we're now set for a very strong wave'2 bounce, levelling out somewhere around 1400/25, this will take until next week to level out.


sp'daily4 - original outlook (from late October)


More than anything, lets be clear, the size/power of this opening bounce is too much for the bears to be re-shorting into. I would be very surprised if we saw a reversal lower now, and I sure won't risk that.

I will sit this ENTIRE week out. No longs.

Bears face a very strong wave higher into the 1400/25 range across the next 4-6 trading days. 

So..last Fridays wave 4 & 5 outlook on the hourly chart gets thrown out, and I'm reverting back to the original outlook.

I will simply wait to re-short next week in the low 1400s.

back at 11am

Update..take a look at the sp'weekly rainbow chart...

Look at the stupid (wave'2) bounce we got in June 2011

We soared 70pts in a single week, then some churn..and then a wave'3 lower - on the debt ceiling/ratings concerns.
Thats a fair example of what I'm seeking in early December.

So...I'm sitting it out..and merely letting the bull maniacs ramp it...hard.