Market Forecast 11-17-10 UPDATE – Update

With my gratitude to The Creator, The Ultimate All-Knower

I was asked by few here and some via forums of professional traders and hedge fund managers that why I had an opinion of being short on 11/16 and then reversing my opinion on 11/17. (click on the charts to enlarge)

First of all, I am a trader, not an Investor. As I believe, though, it requires more of work, but trading, pays better rewards and helps fatten the investment portfolio at much faster pace. That is what Hedge Funds do right now!!, Trading, daily or swing.

When market fell on Friday the 11/12th and then on my forecasted up-day for Monday 11/15th, the up-day (where 90 points DJI rally) faded into the EOD, I had changed my outlook and looking-out for market changing its pulse.  When it broke below the 1,188, it was sign that market has broken the up-trend (for now that day, at least).  However, the enormity of the drop on Tuesday, which has been preceded by the consistent step down drop, since my another forecasted reversal day of 11/05, demanded a strong bounce. On Tuesday night, I went back to my research table and created the chart for you, which revealed one of my proprietary researches that length of rally in 54-55 periods is followed by 7-8 periods of correction. Market doesn’t break rules, …. it follows.

Therefore, my technical indicators pointing market higher, alongside the time cycle of 11/18 aligning up with the decline prior to this previously predicted time cycle of 11/18……. Now Market Must reverse, and it did, as I predicted (Thanks to The Almighty for blessing with the knowledge and ability to share). Mind you that market was not upbeat on Wednesday 11/17, although, it did create double bottom in some and in other markets, it created higher low, as I had forecasted.