Midcap 400, ETF Review


Fools rush in where wise men fear to tread, means nothing to the emotional investor. News of funds pouring into the stock markets is also a contrarian bearish signal. Markets seem to crash after buyers take a break.  I thought I would add this ETF, as it will be useful at the next bear market bottom.

The bull market from the 2009 bottom has gained 500%. Investors left those gains on the table before they decided it was a good time to jump in. They love stocks when they are pointing up, but will come to hate them once Cycle degree wave 4 arrives, and stocks are pointing down again.  Most bullish phases will be 5 or 8 years long where 300-400% gains are pretty normal. The 5th wave gain from 2002 to 2007 was only a 236% gain with 5 waves in Minor degree. 2009-2018 was a 500% gain and this was 5 waves in Intermediate degree.   In the future we will get 5 waves up in Primary degree so I’m sure we will get 500% or more gains at that time as well.

Around the $40 price level a second bottom was created in 2008 which has become a very powerful base to build from.  The EWP is not all about counting waves, but it also has to include counting our idealized waves for each successive 5th wave bull market. We had a 5 wave run in Minor degree and then a 5 wave run in Intermediate degree, with the next single 5th wave run being in Primary degree. (2021-2029) After 2032 we should run into 5 waves in Cycle degree.

My Cycle degree wave counting method came about because the majority of expert SC and GSC degree wave counts come from 4th wave bases.

This can’t happen folks, because there is no such thing as a multi generational 5th wave extension. Maybe when we get into the 5 waves in Cycle degree, we could see that it might be two seasons long. One season can be as long as it takes the solar cycle to flip completely from a top to bottom, and then back up to the top and then down again. (2000-2021)

Of course, all those forecast into the future will be beyond my time, and for it to get confirmed others would have to carry on the work.