- Not a fan of Elliot Waves here. But have seen them work often enough to not totally dismiss.
- In this case, weekly completed 5 up, called for return to previous 4th at 1045. Bounced nicely off the low of 1041 last night. (now 1074). Napshot.
- 4 angles : 1. Given low rates and plentiful central bank cash, hard to see a direct collapse from here ie consolidation first. 2. Elliot Wave - messy series of 3-waves consolidation ahead? 3. Classical charting - pull back towards broken upTL to form a right shoulder? 4. Gut feel - Market too panicky the past 2 weeks. Will calm down.
- So conclusion, outlook for weeks ahead = sideways consolidation. Don't jump in. Target entry levels to set up short. For me, anywhere around the left shoulder at 1151 would be ideal. In practice, will probably be in earlier for fear of missing sudden downturn.
- = Call here for near term Risk Assets rally next. (Positions not shown. Developed paranoia recently. Seems that everything I show here, however intricately put together, goes wrong. As if the market hates me. Either that or I'm stupid and I haven't a clue).
No comments:
Post a Comment