Qua ut, bruta?
Courtesy of AllanTrends
In stock market timing, only one question matters: Where to, Brute?
My two trading systems of choice, Trend Following and Elliott Waves, are pretty much pointing in the same direction, with EW Weekly and Daily analysis putting the DJIA at about 7,500 before 5 waves down are complete.
The most underrated chart of all, the Weekly chart, has clearly shown the completion of five waves up in May of 2011 and the beginning of five waves down, of which prices are on the cusp of entering the a third wave:
DJIA Weekly
Zooming in on the Daily chart of the decline shown above, starting in May, 2011, another clear demarkation of five waves down, again targeting 7,500 for the entire impulse down:
Daily DJIA
Wave three on the daily chart above is just now beginning, by the time it will become the “recognition” wave, prices will be a whole lot lower.
The DJIA Weekly Trend Model, which eschews any analysis whatsoever, other then, “what you see is what you get,” is in its red, or down, mode until further notice. Not a lot to argue with here, which is why I like it so much. As the Beatles immortalized, “You say yes, I say no, you say stop, I say go,” prices go up, or they go down.
Weekly Trends
So let’s try to break the back of the, “Beatles’ System” with the DJIA Daily Trend Model. Certainly, the mayhem of the last few weeks will confuse the fab four, or as we have come to dignify as, Trend Following:
DJIA Daily Trend Model
Oh my, how those boys can sing.
Two different trading methodologies and a quartet singing in the park all are suggesting a hard road ahead, for not only Caesar, but for the U.S. stock market. Where to, Brute? Not to the moon, Alice, but most likely to the 7,000′s in the weeks and months ahead.
