A Top Is Forming After a week of a correction to the upside in the US indices, as expected, this weekend, it looks like we’re forming a top. The next move should be to the downside. The waves up now look corrective, and because of that (and what’s going on with the Dollar Index), I’m… Read more
Market Forecast Overview
Posts reflect the most recent forecast using a combination of cycles forecasting and the Elliott Wave Principle. Posted each Sunday (and sometimes more often).
All trades, patterns, charts, systems, etc., discussed in these articles are for illustrative and educational purposes only and not to be construed as specific advisory recommendations.
Futures, forex, equities, and option trading involves substantial risk, and may not be suitable for everyone. You can lose everything! Trading should only be done with true risk capital. Past performance either actual or hypothetical is not necessarily indicative of future performance.
Fourth Wave Combinations Fourth waves at this high level of trend typically form combination waves. What this means is that more than one Elliott wave corrective pattern traces out before the larger correction is done. The secret to trading it is to figure out each of the patterns before they’re complete. It’s a difficult take… Read more
A New Monetary System? I have thoughts of standing on a street corner and scalping toilet paper rolls … to make some REAL money … lol. In my city, and many others, both Costco and supermarkets have been cleaned out of toilet paper, as if it’s going to save a life! The mood of the… Read more
The “Nowhere to Hide” Wave We’re still waiting to see the top of the second wave of a larger fourth wave bearish drop to the 1800 area in SPX. It also happens to be the top of the third wave, as this pattern should trace out 5 waves to the downside (the final wave may… Read more
Down We Go to a New Low The top of the third wave (a corrective B wave of an expanded flat, apparently) on the daily chart is in. I’m taking a leap when I say this, because technically, in EW Theory, you don’t call a trend change until the second wave is in place and… Read more
Corrective Waves I’m often amazed at the skepticism that sometimes arises as to my calls regarding corrective abc waves vs motive (impulsive) waves. And then, upon reflection, I realize that, in terms of Elliott Wave, it was probably the most difficult aspect of EW analysis to feel totally comfortable with. It probably took me a… Read more
An Unusual Pattern (to say the least!) As we’re so close to a top this weekend (and there’s virtually nothing to trade), it’s time to look ahead at where we’re going, both in terms of the market and what’s going to happen to society. First, the US indices. We have what appears to be a… Read more
Truncations Don’t Exist Truncations are one of those Elliott Wave market anomalies that don’t exist, in fact. There has never been one; each example in the book is bogus and at no point in the past hundred years, have we ever seen a documented example of one. I have argued that, in fact, it doesn’t… Read more
Divorced from Reality The market this weekend is quite the mess. We have currency pairs (particularly AUDUSD) which seem to be out-of-sync with other USD pairs. But, we do have the Euro headed back up (and the US dollar down), which is what we want in order to get a logical top in place. The… Read more
Up Into the Fed Meeting The US market rally from Dec. 26, 2018 is at the end of the road, as per my blog post of last weekend, and late this week, the US indices confirmed the top is imminent by dropping down into a final fourth wave. It appears to “the herd” as if… Read more