Elliott Wave 5.0 "Reboot"

Friday, November 12, 2010

Grand Supercycle, Dow Jones, "DIA" , wave count trash talk!

This is the last time I will post anything Grand Supercycle (GSC) in the main section, but I will start a new page section that will keep GSC patterns and comments separated. By looking at the search parameters that many are using out on the internet, it seems that many are looking for GSC opinions. I will only use black as my main theme and the DIA ETF.
I am a firm believer to always keep numbers small and simple, as the bigger numbers you use, the bigger the numbers you can lose. Trillions are lost when the markets crash and nobody can find all that money, because nobody can find the lost money, they have to "print" a whole bunch of new money! :)

Ok, Lets look at the DIA from the top down as I have two patterns marked out at the top, at this point it still is irrelevant which one you have to use, if the decline is not identified correctly. At the top we have GSC wave 3 and Cycle degree wave "b". Most all major wave counters are counting in GSC counts and have started the big crash with 5 waves down in Intermediate degree ending in a wave 1, Primary degree. The markets crashing down to wave one in Primary degree broke 3-5 major things that sets off alarms in the Supercycle degree world. 

First, right at the top, the market patterns were giving me problems and my small 5 wave sequences were overlapping in the 4th wave rallies. This is a instant warning, that everyone ignores! We can see this by the DIA breaking out of the channel lines rather quickly. Also waves one and two are most often the "least" extended waves and therefore, form at the beginning of a run and not so deep in a run.

Second, the plunge down was to fast and quick suggesting it is not a 5 wave sequence but more a (ABC) crash. It also produced a big "Gap". Also the Minor degree wave 1-2 was skewed to the downside producing a running Flat.

Third, the final "downside breakout" 5th wave decline was not a 5 wave sequence but a three wave (ABC), which many other Indexes and single stocks can confirm. This also ended very sharp! When something ends very sharp it usually is a "abc" crash.

Fourth, The counter rally that started from the bottom should have stopped at the previous 4th wave of one lesser degree and promptly resumed its largest trend downward! It did not do this, but took out the resistance and blasted higher leaving resistance in the dust!
Fifth, the counter rally pattern was making choppy patterns that look more like a 5 wave pattern than good clean (ABC) corrections. This suggested to me that I was in a upward part of the "C" wave. C waves have 5 wave sequences in them. 

And then the final trash at the top of the Primary wave two happened , it stopped and crashed then pushed to new highs.  It will be very interesting to see when and what they come up with as their next wave count.