Nasdaq Intraday Review: Soaring To Record Highs


Since mid April the Nasadq has gone nuts, which any sane wave analysts would label as a small 5 degree impulse wave.  The fact is that most waves are not pretty impulse waves, but they can be diagonal waves instead. Diagonals are when zigzags are connected together.  In the bigger scheme of things the 5th wave is always the weakest and only rarely the longest.  This rally has nothing to do with power or excellent fundamentals, but it has more to do about fear of being left behind. 

Yesterday the Nasdaq hit a new record high at the 5640 price level, and now sure looks like it has started another potential diagonal set of waves heading down.

It is also a good idea to take a Gold/Nasdaq ratio calculation, which sits at 4.50:1. It takes 4.50 gold ounces to buy one unit of the Nasdaq, which is the most expensive reading for all of 2017 so far.  At anytime a new record high, can be the last record high which would then knock the Nasdaq over onto the bearish side.   It only takes the smallest degree for this to happen, and then the markets are very vulnerable to bad fundamental news.  A great  fundamental reason, why stocks are going down can always be exploited with the, “Geopolitical” excuse.  Of course, they will dream up also sorts of other reasons when you give the mainstream more time.

All the bullish forecasting in the world, can turn out to be very useless, when the Greatest Fool has already bought.  The Market Vane report has hit record highs as well, so this sure chokes of any smart money left to come in. 

To say the least I have a very bearish slant, so I will look for these waves that help support that outlook. The last thing I’m looking for is any SC degree or any GSC degree wave counts.  All the Cycle degree peaks must be labeled first, and then they must hold, with a very high degree of confidence.

Imagine if we crash to a SC degree 4th wave bottom, what is the idealized wave count that we would need or that must come next?  The book tells us exactly what we need, and that pattern would be 5 waves up in Cycle degree.   All that would have to happen before we even get close to where GSC degree wave counting is required.