Elliott Wave 5.0 "Reboot"

Saturday, April 9, 2016

Mini DJIA 2007-2016 Review!




I always try and review the big picture when I can which can work out to several times a month or more.  Since I look at the markets from a Cycle degree perspective, which means I follow one complete 5 wave sequence in Cycle degree which wave zero started in 1932. I still am not satisfied that wave 3 in Cycle degree is anywhere near being completed so the hunt goes on. 


Until wave 3 in Cycle degree is found "NO" SC or GSC degree wave patterns can exist. The only way that they can exist  is when the wave count is forced into some mythical impulse wave with throw-over and throw-under trend lines. 

The 2007-2009 crash was a forced trend line as it is impossible for a 5 wave sequence to be this steep. I have the 2007-009 crash as a zigzag correction and it is one of the main reasons that stocks created new record highs.  Any wave count can be thrown out if we don't understand what type of crash that 2007-2009 was. 

The 2009 bottom can be a Primary degree 4th wave bottom with an ugly 5th wave now still in progress. 5th waves are not pretty affairs or pristine, impulse, wave patterns,  as the 4th wave crash is a major technical breakdown, which the 5th wave never completely recovers from. 

Sure, I can give you an impressive corrective bull market, but then I would be doing the exact same thing as all other wave counters are presently doing.  I spent a decade or so counting in SC and GSC degree, but they never made sense.  When that high degree misses a complete bull market and they have never reviewed its beginning, then there is something wrong with the big wave count that must be addressed.  

Even when the Cycle degree wave 3 top arrives, we can get a 3 wave crash in Primary degree  that does not have to go to new bear market record lows. It could fall well short to 2010 price levels and a new bull market would be ready to go.  Of course, all SC and GSC degree wave counters will miss another bull market, as they wait for DJIA 1000-400, which will "never" happen! 

They will be too busy fiddling with "WXY" waves to notice that a potential "ABC" crash has occurred.