Lots of nervous bulls and excited bears all over the TV the past couple of days … everybody needs to just chill and look at the roadmap. Everyone loves to call the top and I am as guilty as anyone. I way messed up calling the top of the 3rd Wave … as it turned out I was looking for Wave 4 when it turned out to be just a more minor/smaller wave iv of the bigger wave 3.
In the end, that early call cost me some lost profit opportunities on the long side as well as some losses on the down side on my shorts. Good risk management kept those amounts relatively small compared to my gains so far in 2012 however, so I am still pumped about the possibilities of the market going forward.
I find it much easier to calculate the support areas in a market trending higher than trying to pick the tops. Why is that? Well I have mentioned in several of my earlier blogs about trying to figure out what what chart time frame is in charge of the current wave structure.