Mother Nature Always Wins The current rally (which now definitely coming to an end) can only be a by-product of the action of the Federal Reserve. I’ve never seen a corrective rally this large on such a large scale, as part of a bear market. Nonetheless, the market still moves to the beat of the… Read more
Market Forecast Overview
The Final Drop Begins This past week was a brutal one and highlights the weakest aspect of Elliott Wave — the ability to target the ends of corrective wave patterns. Impulsive waves are easy. All the waves in an impulsive wave pattern have strict fibonacci relationships to each other. They seldom vary much. However, corrective… Read more
The Blame Game At the top of the third wave, expecting a drop to under 2100 in SPX, I said that the fourth wave would be blamed on the coronavirus. And sure enough, it has been. Even though worldwide debt is larger than it has been ever before in history (250 trillion at last count… Read more
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
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
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
