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
Coronavirus: UK Parents Demand ALL Schools OPEN September, 7 Million Children Abandoned by Teachers - 9th Aug 20
Computer GPU Fans Not Spinning Quick FIX - Sticky Fans Solution - 9th Aug 20
Find the Best Speech Converter for You - 9th Aug 20
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Stocks Bear Market Pattern and the Battle for Financial Sphere Hegemony

Stock-Markets / Stocks Bear Market Sep 23, 2009 - 10:53 PM GMT

By: Joseph_Russo


Best Financial Markets Analysis ArticlePROPHECY - Or plausible consideration of cyclical relationships, and fractal repetition
If one embraces the notion that cycles exist within economies and financial markets, and that, progressions within cycles are fractal and of various size and degree, one must then conclude there is a dynamic level of general repetition continuously occurring across various timeframes.  The footprints of such fractal repetitions record themselves continuously via data points plotted across the axis of price and time.  They do so through recorded price chart data gathered throughout the course of history. 

Furthermore, if one successfully employs and relies upon the use of price chart data to detect various trends in current market behavior, one is also likely to consider the utility in comparing similar relationships of past price pattern behavior with those of the present.  Such endeavor provides a useful means by which to anticipate or narrow down a host of plausible future outcomes.

One such method is to employ the use of chart analogs that compare price behaviors of the past, which correspond best to those in the present.  Analog   an*a*log (noun) U.S CHEMISTRY A chemical with a similar structure to another but differing slightly in composition.  Below is one such analog study of the Dow Jones Industrial Average.

The proprietary analog chart above correlates structure of the Dow Jones Industrial Average in relative percentage terms and price pattern behaviors from 1979 to present with those that had occurred in the 1913 through 1938 period.

One of the most compelling reasons for selecting the above data sets for analog comparison is the striking similarities in the parabolic 13-year advance from 1987 through 2000 when correlated with the eight-year parabola occurring in the 1921 through 1929 period. 

Additional structures of confluence are the timing of near identical troughs occurring in 2002 and 1932, and the twin peaks taking place in 2007 and 1937.  Lastly, we have compelling evidence of a correlating low in 2009 aligning itself with equal precision to the trough experienced in 1938.  Given each of the data sets relative properties, it is clear that each contains similar structures but differ slightly in their composition.

Specific Turn-Months and Wave Count Analogs
Rather than just the “years” in which such turns occurred in the past relative to the present, subscribers to our premium advisory services have access to the specific point-to-point turn-months currently under observation within our active analogs.  These proprietary analog charts zoom in from the key turn pivot at the March 2009 low, and compare the historical wave counts with modern-day counts, as the present thus far rhymes with the past in real time.

Does the above or any similar analog imply that peaks and troughs will continue to occur like clockwork going forward?  NO.  To prove this conclusively, all one need do is attempt to account for the five-years of difference between the 1987-2000 affair, with that of the 1921-1929 affair.  In the grand scheme of things, these two parabolic spikes in price are strikingly similar but differ slightly in composition, and also by a factor of five years.    

Further demonstrating structural similarities vs. any precision of exact repetition, is that despite sharing similar preceding structures, the rally from 2002 through 2007 registered a new all-time-high, while the broad rally from 1932 through 1937 did not.  Nonetheless, we perceive there to be critical value in observing cyclical outcomes of the past relative to those of similar construct occurring in the present.

A 2009 / 1929 Analog would warn of potential DISASTER Dead Ahead
We discussed this in a previous brief titled “Plausible Reality”.  If one were to align the initial 47% decline and subsequent 52% rally that took place in the 1929-1930 Dow with that of today’s similar 54%-decline and current Dow rally, which as of 22-September also rests 52% from its lows, one would then be prepared for a plausible WIPEOUT of approximately 89% in the next couple of years.  Again, our subscribers are privy to unfolding wave counts and the precise turn-month correlations residing in each of our proprietary analogs. 

Artificially Restrained From Natural Cleansing
A deep and thorough cleansing to the tune of 90% has been long overdue.  Our statist shepherds of illusion have continually intervened (at any cost) over past decades to avoid such healthy cleansings.  The further along they push the envelope of hubris, the higher the stakes become.  They are now well past the point of no return, and have in essence bet the entire sovereignty of the U.S on their ability to maintain US-centric monopoly control of the entire global financial sphere.  As matters continue to unwind in the fragile global rebalancing act forced upon them, they risk engendering a major revolution of one sort or another as a plausible outcome in the years and decades ahead.

The Grand Battle for Global Hegemony
In simplifying the grand scheme of things, the past 96-years of US-centric fiat dollar denominated global financial-sphere hegemony is duly under assault, and quite plausibly ending.  In viewing final segments of the parabola from the 1987 crash low, one can observe three battles for maintaining such control growing larger in scope as the 21st century dawns.  The first is barely visible occurring in 1998 with the LTCM collapse and Asian Currency Crisis.  The statists won that battle as evidenced by the run to fresh highs in 2000.  The second battle began following a more protracted threat after the crash and 911 attacks.  A bigger threat required a bigger response, and that is exactly what the statists delivered.  Centralized monetary authorities were again invincibly successful as evidenced in the recovery to fresh all time highs in October of 2007.

The panic of 2008 is the third and perhaps most devastating threat confronting the elite statist powers of the global financial sphere.  By all measure and account, their artificial ponzi-credit financial system of monopoly control failed completely.  Had they failed in executing the largest financial coupe in history to save their monopoly powers, the long overdue and much needed 90% percent cleansing was all but assured to unfold.  Following a most egregious bailout coupe, the central authorities and their brethren are thus far back in control of their legacy monopolies. 

In our view, they are now in the midst of an epic battle for their very survival and continued domination over the global financial sphere.  Invincible and resilient as their triumphs attest over the past 75-years, they are now ALL-IN on an all-or-nothing bet that they would prevail once again in maintaining legacy control of their inordinate monopolies of money and credit creation.

Only time will tell, and there is plenty of time ahead from which this epic battle will no doubt continue until its ultimate resolution.  We suspect that heightened conflicts and inflection points may occur into the 2012(13), 2021, and 2034 timeframes. 

At such future junctures, it is likely that the charts will reveal the level of success and/or failure that the current statist powers are able to impose upon the globe.  It is our hope that the ultimate prevailing outcome will adopt and enforce a free-market driven solution to replace the existing highly corrupt regime of elitist dominion over the global financial sphere.

Are you prepared to invest or trade amid such a potentially tumultuous long-term environment?  Rest assured that we are, so join us in our ongoing quest to journal, forecast, and trade the greatest events in financial history yet to unfold.

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 - 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