At this stage, it is evident that the projection drawn in yellow is playing out. Now, a parallel channel encapsulating the entire correction can be drawn, and a target area estimated with more accuracy:
By tomorrow or Friday, I project that the correction that began in May at 1370 will end around 1300. Based on a T, a rally of at least one month should follow-- hypothetically speaking, possibly an excellent buying opportunity. By the way, the end of QE2 probably has already been discounted by the market.
Agree. Many individual equities are in very strong bullish patterns-- BIDU, EEM, AAPL, GOOG, DBA, DAG looking very bullish. TLT has completed a 61.8% retrace of the entire move down. I am long EDC and BIDU, and will probably add more or go long DAG tomorrow.
ReplyDeleteAs always, thanks for sharing your thoughts, Win.
ReplyDeleteSorry - made a mistake. I thought TLT would have clocked the 50% (not the 61.8% retrace) today, but it inexplicably fell a lot! Really strange -maybe today's bond auction didn't go well? I think we may see 1290s in the futures tomorrow, but after that I think we go up.
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