Best of the Week
Most Popular
1.London House Prices Bubble, Debt Slavery, Crimea 2.0 - Russia Ukraine Annexation - Nadeem_Walayat
2. Gold And Silver – 2014 Coud Be A Yawner; Be Prepared For A Surprise - Michael_Noonan
3.Sheffield, Rotherham Roma Benefits Plague, Ch5 Documentary Gypsies on Benefits & Proud - Nadeem_Walayat
4.Glaring Q.E. Failure Spotted - Money Velocity Is Falling Rapidly - Jim_Willie_CB
5.Don't Miss the Boat on Big Biotech Catalysts: Keith Markey - Keith Markey
6.Gold Prices 2014: Do What Goldman Does, Not What It Says - David Zeiler
7.Bitcoin Price Strong Appreciation to Be Followed by Declines? - Mike_McAra
8.Gold Preparing to Launch as U.S. Dollar Drops to Key Support - Jason_Hamlin
9.Doctor Doom on the Fiat Money Empire Coming Financial Crisis - Andrew_McKillop
10.The Real Purpose Of QE - It’s Not Employment - Darryl_R_Schoon
Last 72 Hrs
America has Become a Police State - 19th Apr 14
Elite Herd Psychology And War By Default - 19th Apr 14
E.U. Officially Adopts the Bank Depositors Bail-In - 19th Apr 14
Goldman Sachs Is Highly Motivated To Low-Ball Gold Price - 19th Apr 14
Save MtGox - Bitcoin Important Implications of Going Down - 19th Apr 14
Stock Market SPX Topping Valuations - 19th Apr 14
Tesco Profits Panic! Back to Back £5 Off £40 Shop Voucher Promotions - 18th Apr 14
The Obama Game - Is Putin Being Lured Into a Trap? - 18th Apr 14
The Growing Threat to Capitalism - 18th Apr 14
Build Biotech Wealth on Solid Platforms - 18th Apr 14
Has Solar Power Finally Arrived? - 18th Apr 14
Bank Depositor Bail-Ins and Real Assets vs Liability-Based Assets - 18th Apr 14
10 Ways to Screw up Your Retirement - 17th Apr 14
One of Harry Dent’s Three Keys to Market Prediction is Cycles - 17th Apr 14
Obamacare Proof Stocks - 17th Apr 14
Gold, Silver And The Mining Sector: Prepare For A Severe Fall - 17th Apr 14
Hidden Australian Life Sciences Bio-tech Growth Stocks - 17th Apr 14
Disrupting Big Data Status Quo - 17th Apr 14
What the Stock Market Bears Have Been Waiting for... - 17th Apr 14
Copper Is Pathological and Suffers from SAD, but It Has Value - 17th Apr 14
Old World Order New World Order, Chaos And Change - 17th Apr 14
Even The US Government Will Abandon the U.S. Dollar - 17th Apr 14
Gold - Coming Super Bubble - 17th Apr 14
Glaring Q.E. Failure Spotted - Money Velocity Is Falling Rapidly - 16th Apr 14
High-Frequency Insider Trading - 16th Apr 14
Gold Prices 2014: Do What Goldman Does, Not What It Says - 16th Apr 14
These CEOs Will Make Investors Rich - 16th Apr 14
Climate Change, Central Banking And The Faustian Bargain - 16th Apr 14
Every Central Bank for Itself - 16th Apr 14
Social Security, U.S. Treasury Stealing Every Last Penny From Americans - 16th Apr 14
Ukraine Falling to Economic Warfare and Its Own Missteps - 16th Apr 14
Silver and Gold Miners Still Disappoint - 16th Apr 14
Silver, Gold, and What Could Go Wrong - 15th Apr 14
How I Intend to Survive the Meltdown of America - 15th Apr 14
France Wakes Up To The Multicultural Multi-Threat - 15th Apr 14
The Real Purpose Of QE - It’s Not Employment - 15th Apr 14
Peak Coal - 15th Apr 14
Flash Crash, Rigged Markets - What’s the Frequency Zenith? - 15th Apr 14
Forecasting U.S. GDP Growth: A Look at WSJ Economists’ Collective Crystal Ball - 15th Apr 14
Stock Market - Is Something Nasty About to Happen? - 15th Apr 14
How to Trade Your Way To Freedom - 15th Apr 14
Understanding (and Ignoring) the Media Bandwagon Against Gold - 15th Apr 14
When Stock Market Bubble Crashes, Take Refuge in Gold Stocks - 15th Apr 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Using Goldman and JP Morgan to Predict Stock Market Turning Points

Stock-Markets / Stock Markets 2012 Dec 21, 2012 - 05:07 AM GMT

By: WavePatternTraders

Stock-Markets

Goldman (GS)

A couple of stocks I like to follow are GS and JPM to forecast pivot turning points in the US stock markets, particularly the SPX.

You can see how JPM and GS appear to be tracking the SPX well and that it’s my belief that if we can track potential Elliott Wave counts in both Goldman and JPM, we can find an edge to the US markets and use that information to forecast major peaks and turns in the US stock markets.


If you overlay SPX, GS and JPM with each other, there is a clear bonding between the 3 markets.

I want to first show an example to the benefits of counting stocks like GS, because they are big stocks that are traded by big institutions, it’s important to watch stocks like this as they act very familiar to the major markets. If those stocks have patterns that suggest a reversal then in my opinion we can use that information to time major turning points in the major indexes.

Back in March this year I was tracking a 5 wave advance for Goldman and it looked completed, which got me on high alert for a potential reversal in the US markets, I have seen it too many times that stocks like Goldman and JP Morgan show completed patterns and then the major markets reverse.

With a 5 wave advance, Elliott Wave suggests once a 5 wave move is completed then a correction is due.

If we overlay GS with the SPX, you can clearly see how knowing what was going on in Goldman gave us a distinct advantage with what was about to happen, or I should say what I thought was going to happen with the US stock markets.

Using Goldman I was actually able to predict that a turning point in the SPX was days away.

The high for Goldman was on 27th March 2012, the high for the SPX was on 2nd April. As Goldman and other stocks like JPM started to reverse and move lower it was only a matter of time before the rest of the market would follow. Clearly you can see how the markets reacted.

Which brings me to the point of the article and by using Goldman and JP Morgan, I think a major turning point is at hand in the US markets and one that could be upsetting the bulls that are too complacent.

If we look at Goldman’s Elliott Wave count, from the June lows there appears to be a 5 wave advance, and currently I suspect its now in the 5th wave, so a top in Goldman should be seen shortly which as  history suggests the SPX will not be far behind if Goldman rolls over.

My best guess at this stage is sometime in January, that Goldman will complete its advance in a 5 wave impulse move. With Goldman so close to the March 2012 highs I suspect this will push towards $135 and end its advance.

It appears to need a few more gyrations to complete its advance from the June 2012 lows. So sometime in January this could be vital clue to use predict a reversal in the US stock markets, and the way GS and JPM appear to be setting up, early in 2013 suggests a turning point for the US markets.

JP Morgan (JPM)

I have been tracking a similar wave count in JP Morgan and that from the June 2012 lows, this as well looks like a 5 wave advance in play and a small dip then a push higher suggests a completion to the advance and another clue that I will be watching to suggest a major turn in the SPX.

With or without a new high in the SPX above the September 2012 highs, (although I have daily Elliott Wave pattern that ideally sees 1480-1500SPX) once the patterns on JPM and GS complete themselves. I am confident they will be signally a strong reversal in US stocks, just like Goldman did back in March 2012.

They say they never ring the bell at the top, but who needs a bell when we have JPM and GS.

Until next time

Have a profitable week ahead.

Click here to become a member

You can also follow us on twitter

What do we offer?

Short and long term analysis on US and European markets, various major FX pairs, commodities from Gold and silver to markets like natural gas.

Daily analysis on where I think the market is going with key support and resistance areas, we move and adjust as the market adjusts.

A chat room where members can discuss ideas with me or other members.

Members get to know who is moving the markets in the S&P pits*

*I have permission to post comments from the audio I hear from the S&P pits.

If you looking for quality analysis from someone that actually looks at multiple charts and works hard at providing members information to stay on the right side of the trends and making $$$, why not give the site a trial.

If any of the readers want to see this article in a PDF format.

Please send an e-mail to Enquires@wavepatterntraders.com

Please put in the header PDF, or make it known that you want to be added to the mailing list for any future articles.

Or if you have any questions about becoming a member, please use the email address above.

If you like what you see, or want to see more of my work, then please sign up for the 4 week trial.

This article is just a small portion of the markets I follow.

I cover many markets, from FX to US equities, right the way through to commodities.

If I have the data I am more than willing to offer requests to members.

Currently new members can sign up for a 4 week free trial to test drive the site, and see if my work can help in your trading and if it meets your requirements.

If you don't like what you see, then drop me an email within the 1st 4 weeks from when you join, and ask for a no questions refund.

You simply have nothing to lose.

By Jason Soni AKA Nouf

© 2012 Copyright Jason Soni AKA Nouf - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

WavePatternTraders Archive

© 2005-2014 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

Free Report - Financial Markets 2014