patrick.net

How big of a correction? When?

indigenous says

How big of a correction?

Not getting ahead of price to much 2002+/-. This is condition based so as to what happens next we won't know until the cards laid down. Probably a bit of retest then a journey to the high 1890s +/-.

indigenous says

When?

It's happening and on it's way with 2 confirmations however I would like to see 1 more to actually declare. S&P should close heading to the 2065-2070 area.

Traders are likely dumping on the way up taking money off the table and perhaps trading to the short side using liquid trades (futures) so they can be easily reversed. Not a doubt in my mind there will be some times of volatility identified by some whipsaw rides. Right now though this is no more than a temporary counter trend trade.

indigenous says

How big of a correction? When?

Big and soon. See the Dow's more detailed analysis. The two are tracking each other pretty well right now.

http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-wave-update-for-week-ending-1252014/

darlag says

Big and soon.

Quantify? Whats your target? How soon next week, next month?

Graybox says

Quantify? Whats your target? How soon next week, next month?

We've had this discussion in depth in other threads. EWT does not set targets but rather interprets the wave structure. When the structure completes and is followed by a five wave impulse in the opposite direction of the current trend then the trend change is confirmed.

As for potential targets I refer you to the more detailed count of the Dow posted above for indigenous. You can extrapolate the S&P 500 targets from there.

Alternatively, you can read through the Dow post history at:

http://www.globaldeflationnews.com/category/stocks/dow-jones-charts/

or learn more about EWT at:

http://www.globaldeflationnews.com/introduction-to-the-elliott-wave-principle-the-key-to-understanding-market-behaviorpart-1-the-basic-8-wave-cycle/

I'm familiar with EW and I'm sure some may find it marginally helpful and useful but there is nothing that competes with trading live price. I think your wave is going to come up short in comparison with the big move implication being presented.

I can tell you right now pro money is not using EW for their positioning.

Graybox says

I can tell you right now pro money is not using EW for their positioning.

Pro money is positioned untenably long and will be annihilated when the trend goes severely against them.. just as they were in 2008. Only this time, there will be no Hank paulson to bail them out.

darlag says

Pro money is positioned untenably long and will be annihilated when the trend goes severely against them.. just as they were in 2008. Only this time, there will be no Hank paulson to bail them out.

Bold statement, of course they would not be so bold witout the Greenspan put.

darlag says

Pro money is positioned untenably long and will be annihilated when the trend goes severely against them.

Eventually some big money is going to lose on both sides however not immediately, lots of hedge funds already closing down.

The pro money I'm talking about don't lose because they are traders of liquid. EW players loose large portions of the play due to it's inefficiency.