Elliott Wave Stock Market Update - November 21st

 

The market closed the week slightly negative at -0.77% after reaching a new ATH last Friday. If prices continue to fall then the TA will likely turn bearish this coming week. Looking at the waves from the longer-term perspective, there are enough waves to call the rally finished so there is a chance we could see a sharp turn-around soon. At the same time, given that all the bad news are out (Record COVID cases, a President who refuses to leave, recession, etc), I am not sure what could bring down the market substantially at this point. In a way, the biggest surprise is how well the stock market has performed despite all the challenges. I just hope it won't be the loser doing something even more unthinkable and stupid to wreck the economy or the political system in this country. 

The good news is that the vaccines are coming so hopefully normality will come back very soon! I am going to catch up on traveling for sure.

Short Term Trend = Bulliss trend being challenged

Medium Term Trend = Bullish

Long Term Trend = Bullish

For detailed wave analysis visit http://ewaveanalytics.com

* Trends are not trading signals. Trends are posted for situational awareness only and do 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

Elliott Wave Stock Market Update - November 11th

The market has been able to reverse course again and turn all bullish again. This technically happened last week and now the market has reached a new all-time high which invalidates all previous bearish set ups and positions the market for further gains if the TA remains bullish. The technical setup prior to the elections was pointing to a strong sell-off and despite the fact that the loser has refused to concede (as predicted), the markets are choosing to overlook this problem. Whether this will turn out to be a "head fake" or the beginning of a sustained rally for the next couple of months remains to be seen but for now, trends are firmly bullish.

I continue to hoard cash and will only deploy when the time is right. There might be upside to be missed but I continue to believe there will be strong selling once the current vaccine euphoria subsides and it's better to be patient at this point.

Short Term Trend = Bullish

Medium Term Trend = Bullish

Long Term Trend = Bullish

For detailed wave analysis visit http://ewaveanalytics.com

* Trends are not trading signals. Trends are posted for situational awareness only and do 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