Today I'll share with you all the power of Elliott Wave principle, as portrayed by the chart below:
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| KLCI Futures - Base Consolidation: In anticipation of a new high (June 25, 2012) |
Sideway consolidation can KILL!! Beware!
I myself got caught in the earlier part of the consolidation channel (ranging 1,503.5 - 1,512.5). Did two SHORT at 1,610 on June 21, anticipating the small correction Wave 3_iv. Did not take profit at June 22 opening gap down, insisting on my TP @1,590, saw a 1.5K profit fly away as all can see that day we recovered well & even made a new peak, slightly. Closed position at 1,511 today after price spiked to another new high of 1,615.5 this morning (about the level of my psychology SL). Then, we now see price come below my entry point. I realize this is a rectangle consolidation, hence didn't make a LONG for wave 3_v.
Now that EU is all RED, Dow futures down >70pts, I guess tonight will not be a good night.
I was thinking to LONG now at 1,530 before today's close, but shunned the idea since I most probably can make a lower entry tomorrow morning if the market oversold due to lower EU & US tonight. Talking TRADING PSYCHOLOGY & STRATEGY!!!
I believe we are now at a Wave 3-iv sideway consolidation, am anticipating a significant new peak very soon. We have got FELDA IPO in the pipeline (June 28), & 2Q'12 cum. 1H'12 "report cards" all coming this week. Hence, some portfolio-pumping shall help us to go to a decisively higher new peak by end of the week = end-June'12.
Enjoy riding the WAVES!! See you at the new top!!
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