Weekly Analysis

By: TheWaveTrading | Sun, Nov 6, 2011
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My long-term count remains the same:

Or

SPX
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Therefore I am assuming that:

SPX
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But:
The bearish set up has to be confirmed.
If price recovers above 1263 the bearish scenario could be killed.

SPX
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In addition CPCE is on the bullish side:

Put/Call Ratio
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And:
ES Globex has corrective down side action + a five up off Friday's lod which is suggesting that there could still be a pending wave (C) up in order to complete the Double ZZ

E-Mini
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Anyway the EUR should limit any unfinished business to the upside if the its Double ZZ is completed, shaping a likely bear flag. (As I am writing it has opened with a gap down)

EUR
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On the Technical front we have:
a) Mixed signals from momentum indicators.

Momentum Indicators
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Stochastics
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b) Overbought readings of Breadth indicators:
Judging from the NYSE % of stocks above the 50 dsma & the weekly stochastic of the Summation Index the market is overbought. The odds of a large reversal are large.

NYSE Stocks Above 50-Day MA
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NYSE Summation Index
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c) Negative divergence of the NYSE 10dsma of the Adv-Dec. Volume

NYSE Adv/Dec Volume
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TheWaveTrading

Author: TheWaveTrading

TheWaveTrading

Contact: If you would like to contact the author, you can e-mail him at thewavetrading@gmail.com

The main objective of this project is to share my views on several markets and asset classes.

In the initial stage TWT website will be a free service.

My main focus will be the equity market with SPX being the leader but I will also follow US equity sectors, major European indices, fixed income, currencies and commodities markets.

My analysis is based upon traditional Technical Analysis, Elliot Wave guidelines and investor sentiment.

My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on the long and short side and mainly with leveraged ones (2 x & 3 x).

The advantage of ETF investments is that it allows getting involved in equity indices & sectors, currencies, fixed income, commodities etc.

Therefore the main purpose of TWT will be to establish investment strategies regardless if the market is in an up trend or in a down trend, leveraging the chosen scenario while managing the risk by establishing protective stop losses.

Hence I will always define the risk, I will try to let winners run the wave and I will cut the losses if my strategy is wrong.

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austrian-money-supply/