Near term target 695 reached

Short. price and vxo levels at opposite extremes...may be early but expecting to fall back to forecasted value 680ish...from 692 which is a resistance area for now, EW wave4?? and wave5 starting?????

2c

Helicopter Ben speaks tonight

and see if he can calm the market? Nothing much to say except the market is still in up mode. 693 area may create some resistance and if the market is to regain the up trend it has to be taken out. But would not be surprised to see some pullback when we get there. Tested the pivot theory today with going long when OEX pulled back to 682 and sold when CCI in overbought area. Tomorrow's numbers are 691, 686 and 683.

2c

Wow, it is impressive

It sliced through 672 as if it did not exist. The near term target of 681 was reached in one day. Now, we should be looking to 695. A few days ago 690 seemed like a dream. Finally the volatitlity index came down. The trend has changed and is up trend. Do not short the market. It has yet to go overbought. It is monthend buying and may continue till Friday. It is buy on the dip now. Many bears got burnt for the hardest thing is mentality change. It confirmed the completion of the wave5 and falling wedge scenarios. Tomorrow, watch 693, 682 and 675.

2c

Good signs for the bulls

Today the market spent most of the time between 663 and 670. Although the late bears tried again to push it down but could not do it much below 663. For the bulls though, the 670 area proved to be too much resistance for the day. However, the fact that it had broken the 5-day trend of closing at the low of the day was a major achievement. In fact, closing at the high of the day would provide the bulls with further upside momentum. In addition, this is the first time it closed above forecasted value 665. Tomorrow's values to watch are 672, 665 and 661. For the trend to turn it has to close above 665 and in fact it better close near or above 672 if it were to get to the near term target of 680. This is a falling wedge and break out to the upside is imminent. Also, parking money in high beta stocks such as RIMM proved to be an advantage so far. But and this is a big but, there is a dark side to it in that the volatility index better come down in a hurry or we will be down in the dump again. It is comforting though to know that the volatility indicator which shows the change of trend on Oct11 and Nov1 also appeared on Nov26 to a lesser extent.

2c

No follow through

It was going pretty good in the morning, and exactly reaching 676, bounced around 670 until 666 could not hold. The selling at the close seemed a bit excessive but that was reflective of the market sentiment. Now the rising VXO was indicative of more selling to come, a slight rebound perhaps but pay attention to 670, 663 and 651.

2c

Short and sweet

The market surpassed 666 in no time at all and closed at the high of the day. All we need now is follow through on Monday. Watch 676, 670, and 667. Near term up target is 687. Any EW guy out there and shall we say wave5 completed from Oct11? Now corrective abc waves??

2c

The power of pivots.....

Notice how today's pivot number 673 act as resistance in a down trend. Conversely, in an uptrend, the pivot will act as support. If the pivot is violated, it signifies a change of trend. Well, what a sick market. One step forward and two steps back is the daily theme. Friday, watch 666 for direction, below it, expect 659 or lower. If above it will try 669, but it has to clear 675 for trend reversal. Therefore, you have an action plan for Friday.

It is only a matter of days now before this down draft will be broken. The 30 min down channel is bullish. As mentioned before, if you are adverse to shorting, park your money in AAPL, RIMM, GOOG Calls.

Have a nice Thanksgiving, although not quite sure what to thank for in the market.

2c