Wednesday, May 22, 2019

Elliott Wave Stock Market Update - May 22






















The market closed slightly down today but remains above the TA and another bullish day would turn the TA bullish. I think the whole trade war issue is the perfect excuse for a summer correction and even if we get another bullish run I doubt it can go much higher given the economic backdrop and seasonality. Still, I closed my shorts yesterday and added to longs with the stops at support. Maybe we'll see another attempt at new highs that will fall short?

Short Term Trend = Bearish trend being challenged
Medium Term Trend = Bullish
Long Term Trend = Bullish


* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking

Monday, May 20, 2019

Elliott Wave Stock Market Update - May 20






















The market closed down again today and below the TA so the bias continues to be bearish. However, I also see the right shoulder of the Inverted Head and Shoulders forming nicely so if support at that level holds then we will probably see a change in trend to the bullish side fairly soon. I might liquidate my shorts tomorrow depending 2825-2831 holds and might even go long given the risk/reward scenario.

Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish


* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking

Thursday, May 16, 2019

Elliott Wave Stock Market Update - May 16






















The market was able to close above the TA for the first time in couple of weeks and now that there is a bottom pattern in place we could see a rally attempt in the next few sessions. I will be covering my short from couple of weeks if the TA turns bullish or if I see key support holding. In fact, I might even add to longs using support as stops given the risk/reward.

Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish


* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking

Monday, May 13, 2019

Elliott Wave Stock Market Update - May 13






















The market had another bad day and looks headed towards a test of the 200 DMA at 2775. The issue of tariffs in on everyone's mind and for good reason since this issue could derail an otherwise pretty healthy economy. Maybe trade wars are not that easy after all! lol. I was hoping a recession would come later in 2020 but if it comes sooner I won't complain. It's time for lots of overpriced stocks and assets to deflate.

Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish


* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking

Friday, May 10, 2019

Elliott Wave Stock Market Update - May 10






















Markets made lower lows today below the 50 DMA but were able to reverse all losses by the end of the day. Still, the market was down -2.18% for the week and there is still the possibility of another low next week. Whether the current correction is China related or just seasonal (Sell in May and go away!) is up to debate but we could be seeing the beginning of the summer correction. Now, on the issue of China. The US has the leverage of being the largest importer in the world and in that sense is able to dictate some terms. China wants to sell in the US and it doesn't want to damage its standing as the largest exporter in the world. At the same time, China grows as twice the rate of the US, sometimes it's triple the rate and it's just a matter of time (less than 5 years) before China becomes the largest importing country in the world and at that time, the US will need access to China more so than right now. China is not going to just concede advantages to the US which forces them to do the same for other countries. After all, the US is a bit under 20% of their total exports so it's a substantial chunk but not necessarily the main market. Trump wants immediate results, China looks 10, 20 or even 50 years down the road so I think in the end this issue will not be resolved in the way Trump hopes for. Maybe, this trade issue and the tariffs (basically a 25% tax on American consumers) will be the catalyst for a long awaited bear market or even a recession. This ultimately benefits traders who have been waiting for a long time (me) for assets to come down. I have been accumulating cash and I am ready to buy more China stocks and/or US real state and stocks during a bear market.

Have a great weekend!

Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish


* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking


Thursday, May 9, 2019

Elliott Wave Stock Market Update - May 9






















The market made lower lows yesterday and now risks losing the 50 DMA. Traders are all focusing on the trade tariffs and it's impossible to tell at the moment if the bearish move this week has been just another correction or the beginning of a much bigger sell off. Personally, I think China and Trump are just negotiating as usual. China apparently interpreted Trump's call for a reduction of interest rates recently as a sign of weakness and they are playing on that. They are testing Trump.

Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish


* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking

Tuesday, May 7, 2019

Elliott Wave Stock Market Update - May 7






















The market sold off today and support was easily broken so I am assuming the all-time high at 2954 is a top unless the market is able to recapture the TA again. The volatility started yesterday but the bearish pattern was actually in place last week when the TA went bearish so not sure if what we are seeing now is pure coincidence or the market destiny playing itself out! Lol. Whatever the case, I am keeping my short position until I see a bottom pattern or the TA turn bullish.

Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish


* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking