"All human activities have three distinctive features: pattern, time and ratio - all of which observe the Fibonacci Summation Series" (R.N. Elliott - "Nature's Law - the Secret of the Universe" - 1946)
Thursday, July 25, 2013
SPX - Correction in progress
The expected wave  seems to be in progress; we could be in wave a/w.
I'm looking for a first target @ 1672, the second @ 1655.
My stock portfolio is unchanged.
Yesterday LLand ILMN, two of my focus stocks with high CanSlim rating, open with large Gap Up but with buy limit order becomes impossible to trade at this levels.
I still have to learn trading with BGU , the pattern of Chris Kacher and Gil Morales.
I wrote them a post; after a few minutes, Mr. Morales replies:
"I don't understand why these become impossible to trade at these levels. Buyable gap-up rules are quite clear - once you can determine and intra-day low on the gap-up day then the stock can be bought using that low as your stop. To me this is the simplest trade to put on.
The real question here may be the general market..."
Both things are true.
The problem with BGU may be only in my mind but, for a part-time trader like me, open a long position after a gap up of + 8% it's very difficult...
About the general market, indexes are very high even for market wizard with a trend-following approach.