Nasdaq Intraday Review: Charging To New Record Highs!

 

In just a few days the Nasdaq had finished a correction before it charged up, breaking yet another world record at the 5687 price level.  Warren Buffett will become a god again as his purchase of Apple stocks proves to be correct.  Have they ever thought about it,  when Warren Buffett stops buying?  I’m sure we will see a reaction with the Nasdaq, as it can produce rather dramatic reversals. 

We have a huge open gap below, which will be the first price target area, before the gap will get closed off.  This last little 5th wave is so choppy that it can only fit into another diagonal or a stretched out ending diagonal will also work. Apple is inside the Nasdaq, but this morning Apple also reached a new record, with the Gold/Apple ratio.  A new extreme ratio this morning touched 7.85. This means that one ounce of gold can only buy 7.85 Apple shares. This is the most expensive ratio I have calculated since I started tracking the Gold/Apple ratios.  Today it takes about 4.67 gold ounces to buy one unit of the Nasdaq, so that is also breaking a new record.  

Folks, we are at record breaking historic market highs, which will not end well. I’m also very confident that the majority of  expert wave analysts,  are one or two degrees higher than all of my work. EWI and others see a depression coming, as chances are good, that new records below 2009 lows will happen. Any single degree can put us off by 61%, which is the (. 618)  Fibonacci ratio. 

Can this still drag out and go higher? Sure, it can but overpriced stock mania bubbles have a tendency to go pop! 

At best we are at a potential wave 3 in Cycle degree, and therefore we should get a Cycle degree 4th wave bottom. This is not Elliott Wave rocket science as our little blue book tells exactly what is supposed to happen, after a 4th wave in Cycle degree has completed. My take on this is that the markets have one main job,  and that is to fool all the wave analysts. There is a very good chance that the markets will “never” go below 2009 price levels, just to try and fool all of us.  Hell,  the markets will already be in a massive oversold condition,  before price levels will ever get close to that 2009 bottom.