Business Magazine

Mid-Day Update

Posted on the 08 November 2011 by Phil's Stock World @philstockworld

Yesterday’s action was rather interesting. Just when you think they were going to continue to kill em?They run em.  Of course the flip side of that is true too- Just when you think they are going to run them? They kill em.

All of which makes for a volatile situation on the surface but also starts to have the look and feel of a trading range being developed in the indexes. We’ll find out soon enough. For us our focus thru year end currently (subject to charge per the market action as we go) is that of individual issues.  We have a lot of issues setting up on the longside via Pullbacks Off Highs (POH) patterns showing up HOWEVER one catch, we’ve yet to see them break to the upside with conviction. Not a big deal for us as we have an outstanding month going and are in no hurry to jump headfirst into the fray. Patience is what its all about. Does everyone know they’re ABC’s? One look at the daily index charts tells the story. We’ve been talking about an ABC down affair when viewing the daily charts and that stance is still potentially in play. Mid-Day Update  Mid-Day Update  In addition to that we can also build a case for us still being in the B wave (errrr from the looks of today’s action - were in?) Now here is the interesting point.  This B wave that we are in looks to be composed of? You got it another ABC (or 3 waves up). We’ve labeled that 1? 2? 3? in blue on the charts below.  Mid-Day Update  Mid-Day Update  IF this is true? Then finally here comes the C wave. If not? then we just stay   in this nauseating trading range that is being developed.  Current Game Plan So here is the bottom line through year end. We buy weakness and we’ll use the 50-day average to define our risk once in a position.  We’ll also want to try to be investors (longer term) and hang on to some through the end of year or thereabouts (now if only we could get a pullback that’s meaningful and stays above the 50 day average here).  As for trading here too we’ll

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