Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Bullish Stock Market Stampede from March ’09 ends abruptly in January ’10

Stock-Markets / Stock Index Trading Feb 07, 2010 - 05:43 AM GMT

By: Joseph_Russo

Stock-Markets

Shortly following the Dow’s print high in late January, it became clear that the markets forward looking mechanism suddenly shifted into reverse.  Well before the fact, we were alerting subscribers of a looming top in late December or January.

Turn-bar analysis is one of the ways we keep members abreast of pivotal market turning points.  Back in October of 2009, when most everyone else was calling for an imminent crash, we alerted our readership that new highs were likely throughout November and into the dawn of the current decade. 


Once the pullback into December reversed, we made the case for a top on 11-January 2010.

Here at Elliott Wave Technology, we are big believers in providing membership with high concentrations of visual chart-based graphics.  As such, charts drafted for each issue convey clear and actionable forecasting guidance.

This 25-Jan turn-bar chart contains an additional piece of actionable information, an INSIDE COMPRESSION bar notice.  We often include this type of ancillary technical insight to provide a higher level of preparedness for our readers.

Inside bars occur when the range of a price bar remains confined within the boundaries of its previous bars range.  Inside bars can and do occur across every timeframe be it daily, monthly, weekly, or intraday.

Inside bars indicate the presence of a temporary state of compression, which suggests that as the next bar moves above or beneath the previous bars compressed range, it will release the built-up energy and continue to move price in the direction of release.  Such release of compressed energy is generally short-term in nature, but in some instances, price moves out of inside bars may mark intermediate-term reversals from key turn pivots, or an accelerating continuation of the current trend in force.

Wrapping up our recent tactical outcomes at LEVEL-V

Our last Level-V chart takes us up to date through Friday’s close.  In tandem, both of our strategies began to sense a bottom on Friday.  So much so, that we booked 337-pts in profits on our shorts from 10300, and started immediately probing the long side of the market for a reversal to the upside.

A tad early, we reversed long @ 9963 with sell-stops to cover at 9909.  Well, our forward looking mechanism was a bit more premature than that of the markets and we immediately stopped out of those long positions giving back 54-pts in losses.
The markets forward looking mechanism would not kick in until an additional 74-pts of downside occurred from the point at which we stopped out of our long positions.

From the start of this tactical journey on 28-Jan, through the close of trade on Friday February fifth, it’s safe to say that we and our subscribers cleaned house at Level-V.  Our MV traders opened their first position on 28-January at 10111, while IPV members joined the campaign on February 1st at a level of 10149.   

All told, our MV traders racked up 384 Dow pts in 5 trades, while our IPV constituents pulled in 434 points of booty in just 3 trades.  Now that is not bad for a week’s worth of controlled speculative risk-taking. 

So you’re thinking we got lucky with LEVEL-V and simply had ourselves a good week

The red lines on the stacked equity graphs to the right clearly illustrate otherwise. 

We have plotted the two equity curves from inception of Level-V accounting, which began nine months ago in March of 2009.  Results measure a starting account size of 5K, which has traded one single Dow futures contract per signal at the IPV level.

Though a bit small and perhaps illegible, the upper graph tracks the growth path in account size, which is now well over 35K.  The green line way down at the bottom is the cost of subscription access to Level-V trading.

The lower equity graph tracks the same IPV performance, but measures our equity growth in percentage terms from our starting account size of 5K.  Current IPV level-V returns are knocking at the door of 700%.  The gold colored line toward the bottom of this graph, illustrates the equivalent percentage of growth in the Dow from an equal starting point.

To be sure, we have had considerable drawdowns, which reflect in the equity graphs.  Until last week’s killer performance, it appeared that IPV equity was beginning to crash.  Much like the markets themselves, suddenly and abruptly, everything changed, and we are now at a fresh all-time-high.

Not the day-trading cowboy type and simply looking for big-picture guidance

We hear you.  In fact most are not cut out to trade in such a zone.  The TradeZone is much like a war zone - even for long-term investors. 

Most are not adequately prepared to handle such battle, and many suffer various types of post traumatic trading disorders following exposure to the type of carnage that can be inflicted upon trading and investment accounts.
 
Our PTP (Position Traders Perspective) members get the same caliber of easy-to-follow visual guidance at LEVEL-I as our day-trading warriors get at LEVEL-V.  Each chart tells the full story, just like the one below.

Long-Term investor-types have come to love LEVEL-I unconditionally

If you are looking for big-picture guidance to avoid being run over by a freight train, look no further than LEVEL-I guidance from our PTP publication.  In addition to saving PTP members from crushing losses in the crash of 2008, we also made them tons of money on the short side amid the catastrophe.

Add to that our all-clear in July ‘09 to cover shorts and reverse long, then sprinkle that with another advance call to take more profits and reverse short a breach of 10450 a week before the 10729 print high, and you end up with a lasting kind of unconditional love from your constituents.  It’s that simple.  

By Joseph Russo
Chief Publisher 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