• 29 mins Could China Start Dumping U.S. Treasury Bonds?
  • 16 hours Is Winter Coming For HBO?
  • 22 hours Rise Of EVs Signals Peak Gasoline
  • 2 days Jeff Bezos Doubles Down On Space Colonization Ambitions
  • 2 days Gold Mining Stocks Stuck In Limbo
  • 3 days Executive Order Targets Huawei Over Espionage
  • 3 days Why Now May Be The Best Time Ever To Hold Gold
  • 4 days Fake News Sinks Shares In UK-Based Bank
  • 4 days De Beers To Build $468 Million Diamond Recovery Ship
  • 4 days Moody's: Turkey Faces Possible Credit Downgrade
  • 4 days Tesla's Solar Sales Are Slipping
  • 5 days Auto Industry To Get Temporary Tariff Relief
  • 5 days Welcome To The World’s Biggest Free Trade Area
  • 5 days Central Banks Are Stockpiling Gold At The Fastest Rate In Half A Decade
  • 5 days U.S.-China Impasse Threatens Rare Earth Trade
  • 6 days Wall Street Bears $1 Trillion Brunt Of Trade War
  • 6 days Mobile Sports Betting Isn’t Quite Minting Millionaires Just Yet
  • 6 days The Marijuana Industry’s Shocking Secret
  • 6 days A Generational Shift Is Quietly Unfolding In The Mining Industry
  • 7 days Pentagon To Pay $6 Billion To Help Build Border Wall
Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

  1. Home
  2. Markets
  3. Other

Stock Market Tops Look Like This

 

November saw the largest inflow into stocks in the index's history, surging the index to a new all time high.

Their statement was even more noteworthy;

“The retail investor has become a bit more of a believer, we don’t want people to get overzealous, if you will. This is controlled exuberance.”

Did you ever hear the term 'Dumb money'?

Well,

That is the term used in the industry for retail investors!

The reason they are referred to as dumb money is because the typical retail investor usually dives in at exactly the wrong time.

Now, dumb money just went 'all in' for stocks when the main index's are sitting at historically overvalued, overbought and over bullish extremes!

Good Lord,

There is no such thing as controlled exuberance!

Be aware, stock market tops look like this!

Now down to business.

TOMORROWS RISK EVENTS:

USD: Unemployment Claims.
EUR: ECB President Draghi Speaks. 
GBP: Halifax HPI m/m.
JPY: Final GDP q/q.

DOW JONES INDUSTRIALS

30 min

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 DOW seems to have corrected higher today, the price move was overlapping as a correction should be and should be followed by a decline in wave '5' blue.

The wave form off the high is developing quite nicely so far although it is very early days in this downturn.

Initial support lies at 23927, the low of the previous wave 'iv' pink. A cross below this level will add weight to the short term bearish case.

The developing downside structure, coupled with the sentiment extreme I wrote about at the beginning,

All fit well with the idea of a topping market.

For tomorrow; watch for a decline into the trendline to complete a five wave structure off the high. At that point I will look for a three wave corrective rally to complete an Elliott wave signal off the high.

GOLD

30 min

4 Hours

Daily

My Bias: Long to a new all time high above 1827.

Wave Structure: Impulse structure to a new high.

Long term wave count: wave (3) above 1666.

GOLD has remained fairly flat today, which adds to the idea that wave '5' pink is still unfolding.

Support at 1260 is holding the price for now, but I expect we will see one more drop below that level into the lower trendline at 1255 which should complete the decline.

4hr momentum is now rising off the low and will shortly create a positive divergence form the price.

I will wait to see a clear bullish centreline cross to shift to a bullish stance in the short term.

By Edna Glynn

Back to homepage

Leave a comment

Leave a comment