Hot and getting Hotter
This wave is getting Hot, so I would expect a small slow down sometime early next week. But, I still think there is more room to run before we take profits.
Above is a new empirical method of tracking wave progress I have recently started. Each day I enter some numbers into an excel spreadsheet I built and it pops out a color coded score to indicate just how "hot" the wave is. I use a Daily chart, a 4 hour Chart, and my RumWave chart. From the picture, you can see that the 4 hour is super hot, the daily is pretty hot, and the RumWave is warm.
The 4 hour chart above looks encouraging. The candle health, for lack of a better phrase, still looks good. From an Elliot Wave perspective, it looks to be about halfway through the "3"wave. I'm not an EW expert, but I read blogs written by some people who are and they are seeing the same thing.
The Daily chart shows a good, strong candle from Friday's action. The trend quality indicator printed a small green tic which I like. What has me a little cautious is the %B indicator which tells me where we are in relation to the Bollinger Bands. It is sitting at 98%, which is pretty high. It doesn't necessarily mean we'll bounce off it, but it is a small caution flag that we are approaching an overbought regime.
Overall, we are still in a HOLD status, with an anticipation of some kind of slowdown or pullback next week.
No comments:
Post a Comment