World Cycles Institute

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.

The Fourth Wave Triangle Warning

Fourth Wave Triangle Warning The warning is this: One more relatively small wave to the upside once the horizontal waves of the triangle play out. Then it’s down, down, down … until 2022. I give it about a month until the top tick is in. The Nasdaq For the past few weeks, I’ve been referencing… Read More

More Sideways to Come

The Bottom of Four For the past few weeks, I’ve been referencing the pattern unfolding in the Nasdaq on a daily chart and making the case that it looks like we have an ending diagonal unfolding. Quite frankly, I don’t know what else it could be. This weekend, it looks like the NYSE side of… Read More

Finishing the Fourth

The Final Fourth I’ve been quite vocal in the Trader’s Gold subscription service about my disdain for fourth waves. Of all the wave patterns (corrective and otherwise), fourth waves are the least predictable. That’s because fourth wave patterns of this size are typically made up of combination sub-patterns (zigzags, flats, and triangles). You need to… Read More

Unexpected Turbulence Dead Ahead

The “unexpected turbulence” I’m referring to in the title is only unexpected to the trading herd and the bulls. Anyone reading my blog posts lately knows I’m expected a rather turbulent end to this large B wave to the upside. It’s seemingly never-ending but I think that’s just to add to the overall market complacency… Read More

Still Counting on a Flat

My poor shoe that I’m expecting to drop (based on last week’s post here) is getting a little worn. But I’m still holding onto it! Yes, I’m one of those guys that likes to wander around the house in comfortable old clothes that sometimes have holes in them! This week, we got what looked like… Read More

Waiting for the Other Shoe to Drop

Last week, I stated my preference for a regular flat as the second downside pattern in this large fourth wave. There was an alternative of another pattern, such as a zigzag down to a new low, but it was less probable. Although it took all week, we got a first wave down in 5 waves… Read More

Locking in the Combination (or not)

My theme for last weekend had to do with the options that were available to complete this fourth wave. That hasn’t changed. In fact, the options have become more complicated. We could either be tracing out a single large flat pattern, or we could be getting ready to trace out the second pattern of a… Read More

Options at the Top

The Spiked Top in the US Indices All major markets are continuing as one. We’re at a top but the process of changing trend doesn’t happen overnight. The spiked top is the example—tops like this usually don’t last. Trends don’t “change on a dime.” The waves down are corrective—they don’t look motive. Some reasons why… Read More

The Big Top Fake-Out

All The Same Market All major markets are continuing as one. It’s not a coincidence that you may have noticed downturns in just about everything this past week; it’s because everything is setting up for a final wave and final turn into a major bear market at the end of it. So the thing to… Read More

On Deck: Confirmation of a Top

A Change of Trend It’s still early to call a top, based upon Elliott Wave methodology. However, here are some facts regarding Friday’s action: at 665 points, the DOW had the largest decline since Dec. 1, 2008 more than eight times as many stocks on the NYSE closed down than closed up every single one… Read More