Happy New Year! I am glad 2021 is finally here and I hope we will be able to put the pandemic behind us in a few months. These next few months are going to be tough but at least there is light at the end of the tunnel. That and the fact we won't have a man-child running the country anymore!
Anyway, the market closed the year at an all-time high as expected but started the year with a sell-off. The market is overbought at this point and any strong sell-off shouldn't come as a surprise. What has been surprising is how resilient the market has been in light of the pandemic and the clown show in the White House. I see some Elliott Wave counts that call for a sell-off very soon to challenge last year's low at 2200 but to be frank, I am not sure how valid are those predictions as this seems like a long-term W3 with no end in sight. But who knows? maybe we'll see a bear market year after more than a decade of waiting for one! I got lucky in business and the stocks I bought in China years ago but I will continue to be patient for an opportunity to get back in the US market. I am sitting on quite a bit of cash just waiting to be deployed so maybe we'll see an entry soon in the US?
Short Term Trend = Bullish trend being challenged
Medium 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
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