4950-5000 range

Well the rally continues. I did not expect it to do this much. I guess thats why they call it trading and the stock market. Cant expect things to work out all the time.

Anyhow today would be a very interesting day. Because after this big rally in the US markets, it would be interesting to see how we react. A gap up is sure but then what? We have been notorious for spiking on overseas markets and then giving it all back and more..So today will be interesting to see if we stay to form or do infact take support somewhere and rally.

For now 4750-4800 has established itself as temp support. And clearing 4950-5000 range and staying above, we can attempt the 5180 area again. Kpl provides a view on this here-

5180

I am not very sure how to trade around this with my existing positions but I will post updates later today after seeing a bit of the action.

Cycles wise, things are murky again. And this tends to happen in the fag ends of cycles. Once again, taking profits early would have proved to be very prudent. Hurst always mentions on trading short - need to be much more cautious than when trading long. Because as I have mentioned many times - Lows tend to be spiky and fast. Highs on the other hand can be a bit more rounded out giving us more opportunities to get out of longs.

Still over the medium term, nothing has changed. The 80 Week low is still scheduled for Nov mid timeframe.

More later today.

Best,
Lee