We bought some FAS today. The following explains my portfolio as of today's close:
Long Term - Big troop dollar amount allocation:
- TLT 25% (10%-04/10, 15%-05/01)
- SPY 35% (10%-07/05, 15%-07/06, 10%-07/11)
- Cash 40%
Medium Term - Small troop stock holding:
- FAS (07/16)
The market closed as a doji inside bar today, showing hesitation and consolidation. Today's low is 1348, but we don't know if the market will test 1345 tomorrow before moving further north. The observation should be focused on Friday's high to signal the completion of wave-2.
Wave count (based on the latest purple line wave count):
06/19/2012's high = [A]
07/12's low = [B]
07/13's high = [C].I.1
Today's low = [C].I.2 -> Tomorrow will be wave-I.3 a long red hollow candlestick!
(Note that this scenario becomes invalid if the market shows a 5-wave down movement.)