Thursday, July 2, 2009

Here we go...

RSX had a 1-2-3 formation (which corresponds to Elliot 1-5) from the March lows to June 1st. It looks like we had the a-b-c correction and may be starting a new Elliot 1-5 with a bearish motive. (Sorry I didn't put in all the numbers) The bear flag in white would be Wave 2 of a new bearish motive.

Currently, I am short this position.

XL is shown as a "winner" in Teresa Lo's workbook, but it's at the top of the momo chart which means this could be topping. She made a special comment regarding this stock as a "Three Little Indians" topping formation.

I have no position on this, but here's my analysis. My guess is that this breaks down with the rest of the market.

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