Monday, December 15, 2014

Elliott Wave Stock Market Update - December 15

The market rebounded early morning as expected but all gains were reversed and the 100 DMA/support at 1977-85 was tested in what seems like the end of the structure from 2055. Ideally, there should be another bottom before the end of the correction but the market could start rallying from here. The market has reached the oversold point where it has usually turned around in the last 2 years, so that's a signal to start preparing for a turn around. Also, despite oil continuing to sell off, prices have reached a multi-year support trend that will likely produce a big counter rally. Not that oil was the reason for the sell off anyway. Some people seem to have completely forgotten the market rallied almost 15% non-stop too all time highs in a few weeks while oil plummeted 25%. Now that oil is 50% off this year's high, I see crazy low forecasts for oil which if anything, it's a sign a bottom is near.

I ended up selling my hedge in the 1990's and I almost bought oil. But since I am already long, I figure my long positions will benefit from an oil turn around so I am just holding equities. I am back to 100% long until other critical levels get breached, specifically 1977-85 and the 200 DMA at 1946. Also, one ETF I am keeping my eye on is RSX (Russia), once oil and the rubble stabilizes, you might see those shares easily double.

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit

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 into consideration other factors.

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