Thursday, December 22, 2016

Elliott Wave Stock Market Update - December 22






















Another exciting day in Wall Street! I guess traders are on vacation since the market is at the same level as 2 weeks ago. But a bigger move should come fairly soon and I am hoping it will be a break out to new highs. I added QQQ to my long position so I hope there will be a strong finish for the year, perhaps 2016 will have the highest close for the decade? The wave count is aligned for a major top in 2017 but could stretch all the way to 2018. Whatever the case, it is best to trade with extreme caution at these levels.

Also, I have the Trending Waves portfolio parameters in place and I just need to wire the funds to the broker to make the account live. Basically, it will be tracked against the S&P 500 including dividends and I will use long only SPY positions to trade in and out. At the time of dividend distribution, I will short to the hedge instead of selling so I can capture whatever the dividend that is being paid. The position will launch on January 1st and I will take into account what the market is doing to go long or in cash on that date.


Launch date: January 1st, 2017

Position size: $100,000 - Non leveraged account with the exception of dividend distribution window

Primary position: SPY

Strategy: Trend Average trading, Elliott wave count, and other chart patterns

Goal: To beat the SPY annual return including dividends


Very few professional money managers can beat the S&P 500,  with some studies suggesting only 1% of mutual fund managers can do that. So I will finally put my system to the test in the most transparent way that I can think of. Real money, real time results will show the validity of what I have been doing here for the last 6 years.

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


Short Term Trend = Bullish 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


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