DJIA Daily Chart New Record High Review: Another Bull Trap?

 

ymy00-nov-10-2016

 

This peak may be the peak that will go down in history as the major top in the markets. Yes, that all sounds great, but when it concerns any Elliott Wave structures, we can always get an expanded pattern. Our wave counts will be all over the map, if we do not even look at, or know about any expanded patterns. These expanded patterns happen frequently when it comes to any wave three peaks and any “B” wave type correction as well.

Since the election results were known, the stock market took off like a horse bolting from the gates. Most of it was all the buy stops getting hit, which were put up by the bears. Instantly, the same crowd that was bearish turn into stock bulls on the way up.

This vertical move, which cannot be maintained, must die or give us a major correction. The straighter the move, the faster it is actually going. This move is behaving more like a “C” wave than an impulse.  Since the 2015 bottom we can see that we had about 4 obvious spikes to the downside, which all turned into bullish runs.  In the last couple of days these spikes have now inverted. (C waves pointing up) This is not a good sign, and I sure would not want to be caught on the bullish side for any reason.  

There are many that are wondering how Donald Trump’s 4 year stint will do to the markets. All I can say is that he may be a president that will be in a Cycle degree crash, lasting for four years or so. With this surprise election result, this did not change any of my big bearish wave counts, except the short term wave patterns.  

The long term bullish phase in commodities, has also not changed with this election, and chances are extremely high that Donald Trump will confirm a Cycle degree wave IV crash! 2020 will be the next election, which fits very well with a major stock market turning point. 2021 is also the time period for the start of a new solar cycle, so you do not want to be bearish with the crowd at that time. All bearish wave counts at that time will get trashed, as we could get a 5-8 year bull market during the rise of solar cycle #25.

 

sunspot_cycles_1926-2003

 

Here is a good little chart that shows how much the sun cycles effect everything on this planet. Many have done this type of research, but ignore it for the most part. The 2008 bottom of the solar cycle is clear evidence you do not want to be bearish when the sunspot activity starts up. In 2008 all the bearish wave counts were crushed because of solar cycle #24. 

 

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