Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Stock Market Election Year Cycles – What to Expect? - 4th Jun 20
Why Solar Stocks Are Rallying Against All Odds - 4th Jun 20
East Asia Will Be a Post-Pandemic Success - 4th Jun 20
Comparing Bitcoin to Other Market Sectors – Risk vs. Value - 4th Jun 20
Covid, Debt and Precious Metals - 3rd Jun 20
Gold-Silver Ratio And Correlation - 3rd Jun 20
The Corona Riots Begin, US Covid-19 Catastrophe Trend Analysis - 3rd Jun 20 -
Stock Market Short-term Top? - 3rd Jun 20
Deflation: Why the "Japanification" of the U.S. Looms Large - 3rd Jun 20
US Stock Market Sets Up Technical Patterns – Pay Attention - 3rd Jun 20
UK Corona Catastrophe Trend Analysis - 2nd Jun 20
US Real Estate Stats Show Big Wave Of Refinancing Is Coming - 2nd Jun 20
Let’s Make Sure This Crisis Doesn’t Go to Waste - 2nd Jun 20
Silver and Gold: Balancing More Than 100 Years Of Debt Abuse - 2nd Jun 20
The importance of effective website design in a business marketing strategy - 2nd Jun 20
AI Mega-trend Tech Stocks Buying Levels Q2 2020 - 1st Jun 20
M2 Velocity Collapses – Could A Bottom In Capital Velocity Be Setting Up? - 1st Jun 20
The Inflation–Deflation Conundrum - 1st Jun 20
AMD 3900XT, 3800XT, 3600XT Refresh Means Zen 3 4000 AMD CPU's Delayed for 5nm Until 2021? - 1st Jun 20
Why Multi-Asset Brokers Like TRADE.com are the Future of Trading - 1st Jun 20
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Stock Market Bullish Stampede Continues

Stock-Markets / Stock Index Trading Aug 23, 2009 - 06:27 PM GMT

By: Joseph_Russo

Stock-Markets

Best Financial Markets Analysis ArticleBuy the DIPS or just HOLD 
For those adopting such strategy, we suggest using one hand to hold your nose, and keep your free hand at the ready in pulling the sell-trigger when appropriate.


We have not changed our view from a few weeks ago, which opined that our trusted shepherds of illusion would like nothing more than to ignite another long-term cycle of buy & hold fever as the only means by which participants can hope to survive amid the artificially created buying frenzy.  As the desired bullish stampede persists, the results of their handiwork must now have them nearing multiple interventionist orgasms.  Are you about ready for a cigarette Ben, cigar, or perhaps reappointment to another term as worshiped god and savior of all humankind?

The market’s upside persistence continues to astonish and perplex
As far as we are concerned, until price action dictates otherwise, we remain long-term bearish, intermediate-term bullish, near-term bearish, and following a phenomenally bullish week of profits at Level-V, we are now beginning to turn short-term bearish.

Level-V trading operation roars back to fresh all-time highs
After moving long upon a counter-trend buy-signal amid Monday’s sharply lower open (when all were convinced a correction had finally begun), our Level-V short-term trading methodology, which typically signals much quicker exits, kept us long throughout the entire weeks bull rush.  All told, by week’s end Level-V had amassed over 300-Dow points in profits.

Of interest relative to this specific level of engagement is the major 116% one-month drawdown in open profit from 495% to 360% that occurred amid the one-way stampede ramp-up rally from the July low.  Once the markets began to finally register adequate levels of oversold from which to launch counter trend buy probes, we started clawing back at reclaiming ground on the steep July drawdowns.  Had one began trading this method with us in July, they would have been totally wiped out within a month.  In contrast, those with plenty of skin in the game sucked up the big drawdown as a cost of doing business.  As the open equity graph below shows, our most recent long trade established last Monday has launched the single contract futures performance to fresh all time highs. 

Probably not quite as impressive in comparison to the proprietary trading desks at Goldman, nonetheless, we’ll take what we are able to, and maintain adherence to our disciplines win, lose, or draw.  Active traders must remember that losing and drawdowns are an essential part of the trading process no matter ones timeframe, strategy, or objectives.  Those who lack discipline, lose patience, and run for the hills after the first rough patch of price action or series of drawdowns, are destined to remain consistent losers throughout the entirety of their trading careers.

Green shoots in full bloom for Goldman
We would not be surprised if this elite bellwether of the financial sphere continues its miraculous V-shape bailout recovery from the abyss until its 2007 highs are retested or surpassed.  We can also envision an abrupt end to what may be an irrational false dawn in the audacious coup to maintain the financial spheres “WE FIRST” monopoly over the real economy.


Elliott Wave Technology vs. the DOW
The bar chart below reflects Elliott Wave Technology’s premium advisory performance results vs. the Dow.  There is no doubt that recent conditions have perplexed the vast majority of seasoned participants, including us.  We expect such periodic challenges, and intuitively adjust our perspectives accordingly.

Touché
The mainstream take is that institutional money managers are leading the fed-induced bullish stampede to the upside.  All we can say is “Let it Rip” people, but STAY NIMBLE or risk slaughter with another imprudent long-only buy and hold strategy. 

For those who wish to obtain a visually graphic, easy to understand actionable guide to the various disciplines and real-time actions needed to achieve a broad array of objectives at every level of market engagement, look no further than Elliott Wave Technology’s PLATINUM publication.  Those with a more narrow focus may select from the below list of PLATINUM’S three subsidiary sister publications.

Three More Options:
GET ONE TODAY

1. The express focus of Elliott Wave Technology’s Near Term Outlook is to provide equity index traders with actionable guidance over the near and medium term.

2. Our Position Traders Perspective provides actionable guidance for longer-term time horizons.

3. EWT’s Day Traders Perspective assists short-term traders in executing proprietary methodology for capturing price moves of shorter duration.

Elliott Wave Technology’s PLATINUM 500 CHALLENGE:

In our effort to serve and empower as many individuals to trade profitably amid the sharks on the street, we will soon be announcing the availability of $500 PLATINUM service coupons.  We shall award these incredibly generous service coupons to select individuals who apply and qualify for entry.  We will let those interested know when entry applications for the challenge become available, and shall announce further details of the PLATINUM 500 CHALLENGE as they develop, so stay tuned.  If you are interested in pre-qualifying, send us an email containing “PLATINUM 500 CHALLENGE” somewhere in the subject line or body of the email.  We will place your email address on our secure list of PLATINUM-500 applicants, and keep you apprised of further developments and qualification criteria.  

Until then,

Trade Better / Invest Smarter...

By Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology
Email Author

Copyright © 2009 Elliott Wave Technology. All Rights Reserved.
Joseph Russo, presently the Publisher and Chief Market analyst for Elliott Wave Technology, has been studying Elliott Wave Theory, and the Technical Analysis of Financial Markets since 1991 and currently maintains active member status in the "Market Technicians Association." Joe continues to expand his body of knowledge through the MTA's accredited CMT program.

Joseph Russo Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules