Daily Analysis

By: TheWaveTrading | Tue, Feb 28, 2012
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We are witnessing a new technical paradigm:

"Equity price goes higher" while:

I don't recall to have ever seen SPX marking higher highs while NYMO is below the zero line. When Mr market decides to take a breather it will get quickly oversold hence I would not bet on a large correction.

NYSE McClellan Oscillator

I really don't have much to add to my last update.

I cannot fight against buy programs & HFT. Every time price threatens to challenge the rising trend line support of the bearish rising wedge, THEY achieve monster short squeezes.

I still think that the overlapping structure suggests that price is unfolding either an Ending Diagonal or an Expanded one, but as long as we don't see an impulsive down leg the dip buyers will keep this nightmare going on.

I can raise the sell stop at the breach of 1355.92

SPX
Larger Image

As I mentioned the main focus remains on Wednesday with:

I keep monitoring the price divergence of KBE & SMH.

VIX should also give us clues regarding the pending top.

 


 

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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