Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Whispers of Instability in the Financial Markets

Stock-Markets / Elliott Wave Theory Jun 23, 2007 - 02:19 PM GMT

By: Joseph_Russo

Stock-Markets There is little doubt that maturing institutionalized paradigms, which foster mounting imbalances of epic proportion, persist in the invisibly slow and torturous erosion across the fabric of collective cultural unity. When mounting imbalances inevitably turn unstable, one may surmise that dwindling unity and collectivism will be reserved for smaller and smaller cultural segments, and eventually dispersed amongst only the most vital of forces who feed upon it - namely the minority of embedded institutions who are most enriched by such deeply layered maladies.


The Financial Sphere Scrambling Amongst Themselves

Inevitably, they will, but not quite yet – and not by a long shot. Continuing imbalances indeed engender growing instabilities, but may take considerably more time to reach majority plateaus of consequence. Initially, increasingly rapid volatile fluctuations in price telegraph uncertainty, which in time, may ultimately manifest to utter chaos and total devastation across the entire sphere.

Triple-digit (1%) headline moves in the Dow, though they receive a great deal of fanfare, are virtually void of notable consequence from such inflated levels of valuation. Minor flip-flop 1% moves are not meaningful displays of volatility; rather they are more akin to whispers of uncertainty.

It will likely require a FOUR-DIGIT move in the Dow to send a convincing institutional message that the markets have indeed overlooked something rather essential in its valuation metric. Thus far, the erratic movements over the past month have done little beyond telegraphing mere whispers of instability.

Are such whispers the start of something bigger? Perhaps - but it will require a great deal of sustained carnage (for which there is no meaningful evidence at present) to remotely suggest that the institutional pillars of behemoth imbalance have fractured beyond the point of swift and painless repair.

Index Traders Edge Vol. 4 , questioned the possibility of an imminent runaway bull. As things stand, such question remains opened to further price discovery as Volume-5 goes to press. In the interim…

Short-Term Traders reap huge rewards

Because of all the sudden reversals, longer duration swing-traders have had some challenge of late; however, short-term traders following our Near Term Outlook guidance have had opportunity to capture superb profits. Over the past week, our analysis defined clear set-ups and targets for traders to have booked a minimum of 17-points profit in the S&P 500 , 20-points in the NASDAQ-100 , and 140-points in the Dow .

That said – let's see how the weekly charts are shaping up, and what might be in store for the week ahead. 

 

 

Concise, impartial market guidance, present throughout our publications, provide clear targets, triggers, and variant parameters from which active traders can successfully evaluate, construct, and manage low-risk trading strategies. The short and long-term rewards in adopting such guidance as part of one's trading arsenal are quite substantial.

Rigors and discipline employed in procuring the analysis is void of mysticism, idle chatter, and all other varying forms of market-magic formulas. Our methodology is fully transparent, and clearly translated - providing a lifelong benefit of advanced trading skills to each of our clients.

Trade Better / Invest Smarter...

By Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology

Copyright © 2007 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

© 2005-2022 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