Market Update Thursday April 4, 2013

by Hank Swiencinski, AIQ TradingExpert Pro client for
over 20 years, founder of ‘The Professor’s One Minute Guide to Stock
AIQ extends its congratulations to Hank for presenting
a really excellent seminar on Saturday March 9, 2013. if you attended and have
some additional feedback please e-mail Steve
The markets appear to be marking time, waiting for tomorrow’s jobs report.
I started buying shares of DXD when the Dow popped this early morning. Given that I believe the top of wave ‘a’ is somewhere near the 14,650 level, I believe the risk-reward is favorable for shorts at or near these levels.
Here’s the deal: If tomorrow’s jobs report turns out to be poor, it could trigger an impulse wave in wave ‘b’ down. On the other hand, If the jobs report turns out to be positive, I believe the pop will just give me another opportunity to add to my shorts. That’s what I mean by a favorable risk-reward ratio.
Right now there is no trend going on. The Dean is still positive, and Emeritus is still silent. The Professor is mixed with an equal number of Buys as Shorts (4). It’s starting to look like today’s retracement is part of a wave 2 in the ‘b’ wave.
I don’t expect my algorithms to become active until the DIA starts to trade below 145.
So for the rest of the day, I plan to continue to look for and accumulate a few short positions. I’m NOT getting aggressive yet. I’ll only do that when the DMI on the Dow turns negative. However, because I believe the upside potential is limited now that we have reached my targets, I will start holding my short positions overnight.
I’m now long DXD and short ORCL.
All of the commentary expressed in this site and any attachments are opinions of the author, subject to change, and provided for educational purposes only. Nothing in this commentary or any attachments should be considered as trading advice. Trading any financial instrument is RISKY and may result in loss of capital including loss of principal. Past performance is not indicative of future results. Always understand the RISK before you trade.

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