Posted by: stockscooter | February 16, 2012

Patience is the Virtue

It seems the markets were just teasing us with the double doji/spinning tops, which I noted on my last post.  It only took a day for this to break-upward and out of the double candlestick pattern.  This looks like classic short covering.  Get everyone salivating over the weekly conditions in the middle of the week, and slam them before the week is over.  I expected that  they might do this late Friday afternoon, but not with 2 full days of trading left this week.  The possible commencement of wave four as noted earlier looks to be negated, if we stay above the 1348 level that I indicated in my post, which would be the non-confirmation.   Actually, this ballistic rally is probably indicating that wave four was short, already completed at yesterdays lows and the last wave five has initiated.  We’ll wait to see how the week ends, but outrageous short-covering moves like this often can be the initiation of the next wave up.  As of now, no crossovers have occurred, and are unlikely this week, given the current pace of advance in the markets.  Thank God for patience (it’s a virtue) and for the discipline to wait for the completion of the current period candlestick, as stated in the previous post.  Let’s keep to that discipline, because the week ain’t over yet!

P.S.  It looks like “The Boys” (the powers that control the immediate market) used the news of new home construction today to start the short-cover.  Seems that there are more housing starts than completions this past month.

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