Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Investing in the Tulip Crypto Mania 2021 - 19th Jun 21
Here’s Why Historic US Housing Market Boom Can Continue - 19th Jun 21
Cryptos: What the "Bizarre" World of Non-Fungible Tokens May Be Signaling - 19th Jun 21
Hyperinflationary Expectations: Reflections on Cryptocurrency and the Markets - 19th Jun 21
Gold Prices Investors beat Central Banks and Jewelry, as having the most Impact - 18th Jun 21
Has the Dust Settled After Fed Day? Not Just Yet - 18th Jun 21
Gold Asks: Will the Economic Boom Continue? - 18th Jun 21
STABLE COINS PONZI Crypto SCAM WARNING! Iron Titan CRASH to ZERO! Exit USDT While You Can! - 18th Jun 21
FOMC Surprise Takeaways - 18th Jun 21
Youtube Upload Stuck at 0% QUICK FIXES Solutions Tutorial - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations Video - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations and Trend Analysis into Market Correction - 17th Jun 21
Stocks, Gold, Silver Markets Inflation Tipping Point - 17th Jun 21
Letting Yourself Relax with Activities That You Might Not Have Considered - 17th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 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


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 - 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