Tuesday, March 8, 2016

Bagholder Phase: Aka. "Sumamabitch!!!"

Northern Trust (wealth management) is a harbinger of the future...

Contrary to popular belief, Elliot Wave isn't "financial voodoo" - such as extrapolating earnings estimates for the next four quarters - it's just social mood expressed in recurring market patterns.

A wave '3' event merely indicates nested failed rallies at multiple degrees of trend (timeframes). Intuitively, price makes an all time high, then falls. Then it retraces part  of that high but fails again. Then it retraces part of that last rally and if/when that fails, everyone shits their pants at the same time...

Because they realize THIS TIME it really IS over and THEY are the bagholders...

Medical supplies (red) with Semiconductors (black):

Utilities / S&P ratio

Dollar / Yen:


Rydex asset allocation (Bull : Bear):

S&P 500: