Stocks Are At The End Of The Line - Prepare Yourself Now!

By: Enda Glynn | Thu, Nov 23, 2017
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I pay as much attention to anecdotal evidence from the actions of market actors as I do to the actual price action on a daily basis!

Well heres another new all time high for you,

The NYSE margin debt figures were released a few days ago for September last.

NYSE margin debt was up 1.59% on the August figure.

And now stands at a new all time high of $559,641.

Why do I keep mentioning this figure when nobody else bothers evening looking at it?

Well,

There is no better measure to show us how bullish market participants are,

Than to know how much they are risking to participate in the bull run.

Despite new all time highs in the DOW.

The risk embedded in stocks right now is at an extreme that we simply have not witnessed before.

And the result of the unwinding of this debt, will be unlike anything we have ever witnessed before either!

Also,

The consumer in the U.S, says he is feeling pretty damn great according to the UoM consumer sentiment survey!

That reading has now matched the 2007 highs for the last few months straight.

And we are now sitting at 10 year highs,

Can it go any higher, Yes of course it can,

The real question is this;

Is the consumer predicting future prosperity, or future pain?

The consumer is the ultimate contrarian indicator,
And consumer sentiment tracks the stock market at a high correlation.


I think we will regret this over exuberance bitterly.

TOMORROWS RISK EVENTS:

USD: N/A.

EUR: German Flash Manufacturing PMI, Flash Manufacturing PMI, ECB Monetary Policy Meeting Accounts.

GBP: Second Estimate GDP q/q, Prelim Business Investment q/q.

JPY: N/A.

DOW JONES INDUSTRIALS
 
30 Mins
 

4 Hours

Daily

My Bias: market topping process completing

Wave Structure: Impulsive 5 wave structure, topping in an all time high.

Long term wave count: topping in wave (5)

The recent rally to a new high, altered the structure of wave (iv) to an expanded flat correction.

The break of the recent wave count has opened the possibility that wave (v) will rally to the 24000 region.

This is where wave (v) will reach equality with wave (i) grey.

The new wave count does not change the long term outlook one bit.

This market is closing out its wave structure at at least 6 degrees of trend,

And once the larger structure is complete

The new bear market will begin, have no doubt.

The DOW corrected today in what should be a temporary setback in wave '4' blue.

Wave '5' blue is projected to reach the Fibonacci 161.8% extension of wave '1' at about 23680.

The price is now settling into a series of fourth and fifth waves over the next week to ten days.

For the moment the upper target remains at 23950,

The price must remain above 23491 at the wave 'i' high as wave (v) grey closes out.

For Friday;

We should see another rally to a new high to complete wave '5' of 'iii'.

By Edna Glenn


 

Enda Glynn

Author: Enda Glynn

Enda Glynn
bullwaves.com

Enda Glynn

I class myself as an Elliott wave trader now, but that's not how I started out though! It took me a long time and a whole lot of pain, to finally understand what drives the price and how to use Elliott Wave correctly!

I have been trading for years and I have tested every trading system and strategy under the sun! I used to pick entry points at random based on emotion or news events or something I heard on TV! It did not take long to destroy my capital! I have blown out my account balance before, and I had to start again,

from scratch!

Believe me, I am well acquainted with failure in trading! Im sure that the above scenario is pretty familiar to you too. We have all been there. About 10 years ago I discovered The Elliott wave Principle and its method of market analysis. Since then, I have spent years learning, testing and trading, using the wave principle as the backbone of my analysis. I even went to college to study macroeconomics and econometrics. I graduated with honours degree back in 2012. The financial market knowledge and statistical edge I gained after my degree added another level to my trading. The difference in my trading approach using the wave principle, compared to before, is like night and day.

The price started to move "my way" more and more often. The wave model, offers me a lens to view market action through, which no other form of analysis can do. Elliott wave analysis, helps me answer four key questions when I am contemplating a trade:

• What direction the price is trending.
• How far is this trend likely to go.
• Where can I enter a trade with the best risk reward ratio.
• And most importantly, at what point am I definitely wrong?!

The wave principle helps me improve my trade entry, tighten up my money management and in turn increase profitability. Seeing the waves unfold before your eyes is a very rewarding experience, It is almost like peering into the future! That is how the wave principle helps my trading, and that is why the wave principle will improve your trading. It took a long time to finally master Elliott Wave Principle. After over a decade of hard work, research and learning I can call myself an expert in the field. I regularly contribute to major trading communities at FXStreet, Forex Factory, Traders Planet. I am a chief Elliott Wave analyst at HumbleTraders.

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