I know – probably the last thing you want to read on a day when the US Equity Indexes are down over 5% is an example of the Elliott Wave Theory applied to a one-minute chart of the DIA, but sometimes it helps to envision structure in an environment of perceived chaos and randomness. If…
Today’s equity decline undersay has stunning ramifications for the larger time-frame structure of the S&P 500 and other US Equity Indexes – we’re now at levels not seen since 2003. Let’s take a quick look at this structure to see where this takes us. S&P 500 Monthly Chart: First, let me state that we’ve now…
The US Dollar Index made fresh 2008 highs on Friday, but only marginally so. Let’s look at the daily chart as well as the longer term monthly chart for potential clues to the future. Also, Adam Hewison of Market Club recently released a two-part video series entitled “The Past and Present of the US Dollar…
On Monday, the US House of Representatives rejected the “Bail-out/Recovery” Bill narrowly, sending the Dow Jones plunging, closing down 777 points. Today, hours ago, the House passed the Bill by a comfortable margin. Did the Dow rally like virtually everyone expected? No – it fell almost 500 points from its intraday high. It almost makes…
I previously posted the “Three Hard and Fast Rules of Elliott Wave Theory” and now it’s time to see these simple rules in action on two stocks on different time frames. First, let’s review those rules: 1. Wave #2 Cannot Retrace 100% of Wave #1 2. Wave #3 Cannot be the Shortest Wave (but does…
Despite how difficult Elliott Wave Theory seems – and it’s certainly not easy to interpret possible wave counts – there are really only three solid, objective rules that your wave count must follow – the rest is mere guidelines. What are these three main rules you ask? Let me preface by saying that Elliott proclaimed…
On Wednesday, the Dow Jones ETF – the DIA – gave us a good example of an ascending triangle… that brokeout in the opposite direction as expected. Let’s examine it and learn from its development. 5-Minute Chart DIA: Generally, an Ascending Triangle is a continuation pattern and has an upwards break-out bias, as strength is…
What a month September was for the Market. It lived up to its reputation as a weak month historically. So, how did the gap-fade tactic work in the Month of September? How many overnight gaps occurred in the Dow (DIA) and how many of those filled? It’s time to take a look as a new…
The only way I can describe the recent stock market activity is that of a wild “Roller Coaster” ride. Up, down sharply, up again, down again – nauseating, but fun if you like the wild swings (or have short-term strategies to take advantage of them). Let’s take a closer look at the S&P 500 to…
Research in Motion (RIMM), a popular stock for day-traders due to its volatility – recently plunged from an August swing high of $135 to a September low of $60 per share. Let’s look at the current chart to see a good “Measured Move” pattern example as well as potential support for RIMM on the weekly…