Wednesday, March 1, 2017

Elliott Wave Stock Market Update - March 1

The market really liked Trump's speech last night and reached the 2400 level today. This is the strongest rally we have seen since 2013 and it makes 2500 look like an easy target at this point. At the same time, this 2400 level has been the target for the entire rally that started in 2009. The exact target is actually 2423, so don't be surprised if the market experiences a strong reversal after the euphoria fades. Stock market cap to GDP is running around 130%, which implies a an extremely overbought condition that eventually gets corrected by a strong bear market. Maybe sell in May this year will be stronger than usual?

I ended up holding my short position I bought couple of days ago and looking to again trade the position on the correction unless I see a definite trend reversal move. At least I am just buying regular 1 to 1 shorts and not leveraged or VXX, this rally has the potential to wipe out the riskier short positions.

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

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 whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking

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