Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Deviation from Overall Outlook for 2020 - 22nd Feb 20
The Shanghai Composite and Coronavirus: A Revealing Perspective - 22nd Feb 20
Baltic Dry, Copper, Oil, Tech and China Continue Call for Stock Market Crash Soon - 22nd Feb 20
Gold Warning – This is Not a Buying Opportunity - 22nd Feb 20
Is The Technology Sector FANG Stocks Setting Up For A Market Crash? - 22nd Feb 20
Coronavirus China Infection Statistics Analysis, Probability Forecasts 1/2 Million Infected - 21st Feb 20
Is Crude Oil Firmly on the Upswing Now? - 20th Feb 20
What Can Stop the Stocks Bull – Or At Least, Make It Pause? - 20th Feb 20
Trump and Economic News That Drive Gold, Not Just Coronavirus - 20th Feb 20
Coronavirus COVID19 UK Infection Prevention, Boosting Immune Systems, Birmingham, Sheffield - 20th Feb 20
Silver’s Valuable Insights Into the Upcoming PMs Rally - 20th Feb 20
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

World Stock Market Indices: When to Start Buying Stocks Again?

Stock-Markets / Global Stock Markets Dec 29, 2018 - 02:41 PM GMT

By: ElliottWaveForecast

Stock-Markets

The World Indices have shown a sideways to lower year in 2018. The last Quarter alone World Indices lost their gains, for example, the SPX or the Dow Jones. Other World indices peaked earlier than others this year and some of them did not produce new highs again.

There is a lot of speculation going around the Market which results in many questions which need to be answered. We can hear a lot of experts calling different reasons and scenarios. It goes from a Political crisis to the Trade war with China, to the Feds raising interest rates and many more assumptions. However, the reality is that neither of the mentioned reasons can justify the latest moves in our opinion.


The Market as we always say is a combination of time frames, cycles, and sequences. And the only thing that matters is the way Market Makers (Smart money) trade them. We understand this is a big secret which even people in the media or in the public don’t even talk about it.

The way the Market works is what we call Market Nature and goes from Inflection areas to inflection areas. It is very simple. The Market makers know those inflection areas because they are doing the Market and consequently, they know when to turn and when to push one side over the other. The World Indices are not just the SPX or the Dow Jones.  World Indices are the Indices across the World. We at www.Elliottwave-Forecast.com always relate instruments with other similar instruments, which is called market correlation. That allows us to follow the Instruments which are showing the clearest structure. Then we relate them with the rest and make the Elliott wave counts accordingly.

Many believe in the Elliott Wave Theory. We are using and practicing the Theory as well every day. But we understand that Elliott Wave on its own is not a reliable tool. We believe that the Market Makers do not use The Elliott Wave Theory to trade. They use sequences, cycles and relate them across the Market. They have the power to make the Market.

Coming to the recent decline. The decline which we are seeing is very Technical and can be seen across other markets as well which many traders don’t even recognize. Everything started in January 2018. The World Indices have reached a stage in which a decent pullback was expected. In the following chart, you can see the Nikkei weekly chart presented to members in our Yearly Forecast earlier this Year. You can see that we expected a decent pullback in the Instrument.

Nikkei Weekly Chart published at our Yearly Forecast 

The Blue Box which you can see in the chart above. Is the 61.8% Extension area within a Bullish Grand Supercycle. That area was reached already earlier this year. Also in other Indices like the FTSE100, SPX or the Dow Jones YM reached their respective areas. Therefore,  we knew that 2018 was about to be a tough year for the World Indices and we told members that will be like 2015 over again. We presented this comment to our members at the Yearly Forecast:

Since bottoming in 2009, the rally in Nikkei from 2009 low shows a 5 swing sequence, favoring further upside. Nikkei has now reached the area of 23576 – 25643 where the fifth swing can end, and we are calling swing #5 ended at 24200. Nikkei is expected to pullback in the 6th swing in 3, 7, or 11 swing to correct the cycle from 2.2016 low. The expected correction in the 6th swing is similar in nature to the correction in 2013 (the 2nd swing correction) and then more upside in 7th swing. We don’t like selling Nikkei and prefer buying dips in 3-7-11 swing against 2.2016 low.”

Another quote in our Yearly Forecast stated the following:

“In conclusion, 2018 should be an interesting year for the Market, seeing the charts we can expected a temporary peak in the Indices. We believe the cycle from 2016 should be ending this year and a pull back like the one seen in 2013 should be seen before we get more upside in the Indices. Indices dips should find buyers in 3-7-11 swings against 2016 lows.”

As you can see, we already warned our members of a temporary peak in 2018 and that a decent pullback should follow. The next chart represented the Nikkei sequences overlayed with others World Indices showing the expected Pullback.

Nikkei vs World Indices Weekly Chart

So as you can see, we already warned our members that the 2016 cycle was ending and a pullback was coming.

For us, it is very clear that the World Indices decline is very Technical and was expected overall. With that said the decline has nothing to do with interest rates, Political environment or Trade War. The decline is happening, because the World Indices reached the areas in which by Nature the Market pulls back. It was easy to see and expect.

The White House can come and try to spin the decline and show the positive face and facts but the reality is that Market Nature, sequences, cycles are still calling for more downside. Stocks like BABA and XOM are the important players now and they are presenting the floor for the Market again to rally. Those have the clearest structure.

Elliott Wave Theory counts can be adjusted in second. But Sequences cannot, and they work in higher perfection than the Theory itself. The Sequences are clear and we are waiting for BABA and XOM to reach their respective extreme areas.  And once they reach their extreme. The World Indices should rally again because, they are all trading at same cycles, sequences and all are related to each other. Sequences and cycles rule the Market.

The following chart shows the  BABA sequences from the 06/05/18 peak. This stock is supporting the idea of World Indices still trading lower against 12/3/18 peak.

BABA Daily Sequence Chart

In the last chart you can see an overlay of SPX, BABA and the Nikkei Index. All are trading in the direction lower. And once BABA reached the 88.35-68.98 area (blue box) it will be yet the time again for us to buy the World Indices again.

SPX overlayed with BABA and Nikkei Daily Chart

We have learned over the Years to relate the Market with other correlating Instruments because that is the only way to get an edge. The Indices are not correcting the Grand Supercycle yet. They either have been correcting the 2016 cycle or the Supercycle. Anyway, they will offer us again a great opportunity to buy. Those whose are saying the economy is strong, they will be ending been right, because the sequences are supporting that fact. Stocks are having a very good price and the Grand Supercycle correction still need to wait. The chances that it is ending happening now is small, it can be seen through stocks like BAC because the stock would then go below zero which the chances are very small. We understand how the MARKET makers trade, so we follow them. And not the news events, Political world or Trade Wars. We at Elliott Wave Forecast trade like Smart Money.

By

https://elliottwave-forecast.com

ElliottWave-Forecast has built its reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, Cycles, Proprietary Pivot System, we provide precise forecasts with up-to-date analysis for 52 instruments including Forex majors & crosses, Commodities and a number of Equity Indices from around the World. Our clients also have immediate access to our proprietary Actionable Trade Setups, Market Overview, 1 Hour, 4 Hour, Daily & Weekly Wave Counts. Weekend Webinar, Live Screen Sharing Sessions, Daily Technical Videos, Elliott Wave Setup .

Copyright © 2018 ElliottWave-Forecast - 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.


© 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