Mini DJIA Intarday Update: How’s Buying On The Dips Working For You?

Investors just pumped the most money ever into stock funds for 1 week

Investors have been brainwashed to buy on the dips, and last month’s surge of funds clearly demonstrated this. All those that believe in buying the dips are convinced that this bull market is far away from ending. I’ve seen it all before as this will be my third bear market I will be tracking since the 2000 peaks.

These investors that are jumping in at the top of the biggest bubble in market history, will find out the hard way not to believe in the crap that analysts spew out on a 24/7 basis. When the media paints us a rosy picture for an extended period of time, then everybody in the world is already invested, and no one is left to get in, except for the stragglers. This bear market is going to be bigger and last longer than anyone suspects. At a bare minimum the DJIA 15,000 price level must get breached. That may only be stage one as even 15,000 is not deep enough for a Cycle degree wave 4, bear market.  The support we are going to get will only last for a short time. When we see choppy rallies, we know they are just bearish rallies and the trend will resume on its crash course heading south.  I have created a new template for this Cycle degree decline, but they have not been posted. In a big bearish phase, we will constantly see lower highs and lower lows which is the opposite of what happens in the bull market phase.

I’m counting from the secondary peak as it could fit into a running pattern, but will adjust later when need be. When the masses are pushing the stocks up, then I use one of my templates and have the bearish side all drawn. What I call “templates”  have no Elliott Wave numbers or letters on them, as it can be used for any wave degree that we need. Once I print out the template I count out all the waves with pen and paper to make sure the sequence looks good. Then I scan this 8×10 into my computer.

The bear market (big bull market correction) from 1937 to 1942 best works as a zigzag with a short “C” wave. This also created one wicked looking wedge.  All this  keeps my flat at the top of my list of corrective waves to come, and the only question is, how big any counter rally will be?

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