Wednesday, December 5, 2007

Equity Market Comment - 12/5/2007


I use Elliot Wave for a guide line of the market only.

For years and years I tried to figure the entire concept out for it to become a stand alone
system, but I was never able to get fully to that point. Using it as a guideline has been very reliable and really helps to give guidance as to where the market is in relation to itself.

Well I think we can safely say that the bullish scenario has been confirmed.

Regardless of this fact, we are still about 90% done with this first leg up and short term traders should be looking to take some of the chips off the table especially if the alternate structure as the chart describes below is in effect.

The probability model for tomorrow calls for a fairly large ranged day and a close very close to the middle of that range with a slight bent to the downside. The model stipulates that this type of market action would mark the end of the first leg up and the onset of a counter trend rally. The probability model also says that fading a gap opening either up or down is a safe bet.


No comments:

Trend Analysis LLC Headline Animator