E-Mini S&P Midcap Intraday Elliott Wave Count Review.

 

ewy00-sept-20-2016

 

From the spike bottom in early 2016 the markets reversed dramatically, but had started to slow down in the last month or so. The reversal in January 2016 are the wave patterns I like to hit with my wave counts as they provide sufficient power behind them to reduce the risk. Any deep correction scares the traders out quickly as protective stops get nailed, just in time to reverse and go higher. In theory sell into vertical spikes, and buy into bearish spike bottoms when they occur. 

Of course it is hard to buy when the entire herd is pushing bearish forecasts. I was bullish in early 2016 and about the same time Kaplan issued a HDGE sell to his members as he switched when he saw a bull run coming. In general, any wave count we can produce should correspond with what the best contrarians can do. This also happened at the 2009 bottom, so it is not just luck that this happens, as luck should have nothing to do with trading.

All those that had extremely bearish forecasts in 2009 paid the price as the contrarian signals were already pretty clear,  in late 2008.  Eventually we may have to  do the same thing again, but at a much different price level. In the next 3-4 years we may have to hit several more bottoms with the big one being at any Cycle degree wave 4 bottom.  Any anticipated Cycle degree 4th wave bottom will see maximum bearish resistance at the 400 price level. Any price level above that bottom will be very acceptable, as nobody may expect a “C” wave bottom higher than what the mega bears will tell us.

In other words the high degree wave counters will be missing the next biggest bull market in history again! My younger readers will live through this as my Goggle Analytics demographic tracker,  is showing me at this time. This is all good as far as I’m concerned, as many may have no interest in the markets until they are in their early 40’s. The earlier the better is always the best way.

This Midcap index supplies a much more well formed EW pattern, and it is a good index to track as I think it also represents the fundamentals of the economy much better. Fundamentals are breaking down already, as many of the best analysts have mentioned already.  The Wells Fargo fiasco is just one example. I follow a few good analysts on Twitter so that saves me a lot of work.  

Debt loads are soaring again, and Canada also has major issues that are catching up to us. Real Estate has popped this year in Canada, and the oil crash has plunged our GDP.

We will be fine as long as our fearless leader keeps up with his great photos and selfie opportunities. 😉 Justin Trudeau seems like he is playing the fiddle as Rome burns! 

 

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