US Stock trade - MU

[dwooding]

Here's a near perfect setup for a buy.

MTPredictor signals a possible buying opportunity:

- ABC correction

- the pullback occurs exactly at the 78.6% price retracement level

- tomorrow corresponds to the 100% time retracement

Dave

http://www.fibonacci-retracements.com/images/mu1.gif

[Steve Griffiths]

Hi Dave,

Although this is a valid buy set-up, be carefull of the larger-degree trend. It looks as if the US markets mave have made a top on the weekly chart. If this is correct, then the main trend will now be down and as such you shoul be focusing on short trades.

Please see Chart

I hope this helps ?

Steve

[Steve Griffiths]

Hi Dave,

As I sucpected MU was stoped out for a small loss. This was because, the main trend was down, so, as outlined in the Trading Course, it does not matter how good the set-up may look, if it is against the main trend then it has a high likelihood of failing, as in this example.

Please see the weekly SPY chart that appears to have made a Wave 5 high right in the minimum Wave 5 WPT resistance area.

I hope this makes sense ?

Steve