Mini DJIA New Record High Update.

There is always a good chance that I may still be too early, but what I can say is that this recent bullish pattern is choppy as hell and would make a perfect ending diagonal. Any diagonal wave structures are can be found in any 5th wave and even can extend dramatically, which they don’t teach us in the EWP, which I call the “Little Blue Book”.  As soon as any wave does not follow a very high quality impulse wave, I switch and start looking for diagonal wave positions.

This could remain bullish for the rest of this month as month end, seems to be a popular reversal time period.  I’m sure that one day 2-3 years into the future this DOW could be heading to 8 or 7, 000, with many calling for much lower DJIA  market prices.  When that day arrives, you can bet I will be calling for the DJIA to charge back up to 34,000 which the majority will think is insane. This will never happen until we reach another massive bearish situation, and a 500% gain is just a bit more than the majority of 5 or 8 years 5th waves have done.  We are at a bit above a  400% gain in a 5th wave bull market already, so a 500% gain is not that wild of an idea. Especially if we are going to get the, “Roaring 2020’s in Primary degree.

Everybody hates stocks back in late 2008, and when stocks are at the extremes they love stocks. The herd will never change as it is also mathematically impossible for the majority to take money from the majority. Only a very small minority invests like the seasoned contrarians do, even though many brag about being contrarian. I consider insiders as contrarians and SEC rules require insiders to declare their trades. This is public information,  and  the majority chose to ignore this data.  Any bearish wave counts and bearish outlook after insider reports come out will have their opinions crushed, as the markets will always do the opposite of what the majority want it to do.

One main reason why this market is so extended is because we are coming to a  Cycle degree top. This is one degree lower than the 2007 peak and a full two degrees higher than the 2000 peak.  All three peaks since 2000 are wave three peaks which must all develop in sequence.  Sure, I’m working the SC degree wave 3 just like GSC and wave 3 in Submillennium degree. If we’re lucky we might reach SC degree wave three by 2029 and GSC could still be 100 years away!

The Gold/DJIA ratio is at 19.44:1 which it has done 3-4 times already. The ratio seems to have hit a brick wall which is very bearish from my Cycle degree perspective.