Elliott Wave 5.0 "Reboot"

Saturday, February 6, 2016

DJIA Big And Small Elliott Wave Count Reviews



Even with all the bearish trash talk and warnings from the experts that the markets are on a one way trip into the disaster zone, it still does not change the patterns that have already emerged. 
In the last year or so there are so many overlapping wave structures that it is impossible for me to force a clean set of impulse waves except for very small degree sequences. 

Elliott Waves will always work in such a way as to always travel the opposite of the trend what the majority is thinking or hyping, because otherwise the 99% would be rich and the 1% would be poor. 
It works contrarian in nature.  Any wave count that confirms or is in sympathy with the herd for very long will never work, as 2009 proved that beyond a shadow of a doubt. 

On Jan the 20th the DJIA landed with a big spike and proceeded to rally, in a choppy fashion.  This can work as part of a diagonal wave structure so I have to follow it until it is trashed beyond a reasonable doubt. 

Either way the next few weeks should make or break this bearish mood the market is in.  Also, many are talking that we are in a bear market, but we are not even close to a gross 20% decline which is the mainstream definition that a bear market has arrived. 



This is my Cycle degree wave count and any trend lines are parallel to the top line, with no forced  throw-over. The entire structure is also running at an angle across the corners of the chart, which is what I like to see happen as well.  Most of all there is no SC or GSC degree wave counts present and there will not be any present until all 5 Cycle degree waves are found. 

This is the  mathematical and sequential nature of Elliott Waves. I can't call my "D" wave top completed yet as it is still gyrating around without any clear impulse waves showing the way. 

In the end, we could end up at a Cycle degree low with a major bear market completing below the 2009 lows. Even if these lows materialize the majority will not be satisfied, but will be calling for the worst still to come. By that time I am sure we will see many other indicators telling us that the exact opposite will happen, as insider buying will be one big clue. Also the Warren Buffet indicator works if he is still active by that time. (2021) The solar cycle bottom will be the biggest indicator as solar cycle #25 will usher in the Roaring 2020s. I would expect 5 waves up in Primary degree lasting 8 years or more.