Elliott Wave Stock Market Update - February 13

I posted the following almost a month ago and this is now the 8-9th time that we get new highs after the indicators I follow flashed oversold.

"Every time the market has been this oversold, we have seen new all time highs in the past 2+ years and most recently in December. I don't remember how many times its been already but I think this is the 7-8th time the market has reached this oversold level since Feb 2012."

And like I said on the same post, I am sure a top will eventually come and bears will finally be right. But that's after attempting  to predict a top more than half a dozen times and possibly lose a lot of money trading against the trend. My point is, I know trending indicators will eventually fail because it is a lagging indicator. But odds far exceed attempts of calling a top by using fundamentals, orthodox Elliott Wave and other TA tools. In this case, the Trend Average has kept people who understand it on the right side of the trade for the last 3 years. That's one claim very few can make.

I haven't had time to read the news today as to "why" the market went up, but I'm guessing the excuse is oil, central banks or Russia. But those are just excuses, as I mentioned several days ago sentiment was going to favor bulls and that we could see a wave to new ATH this week. This bullish sentiment can easily turn into euphoria. Just imagine if Greece decided to stay in the EU, that'd be the excuse to run the market to 2150+.

Have a great weekend!

For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com


Short Term Trend = Bullish
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 whipsaw