Friday, December 2, 2011

What's It Going To Be?

I am not a huge fan of counting Elliott Waves since the 'craft' inevitably succumbs to the trappings of cognitive bias. So, if any of you are EWT aficionados please forgive my blasphemy. The notations are not meant to adhere to standard Elliott nomenclature but is only intended to show that the market is at an important crossroads.

The BULLISH scenario is depicted by the GREEN labels, while the BEARISH scenario is shown in RED. The important trendlines have been added to help discern whether the market is having a BULLISH breakout or, conversely, a BEARISH breakdown.
click to enlarge

Market sentiment is leaning towards being excessively pessimistic, which as experienced traders are aware, is quite BULLISH from a contrarian perspective. However, an argument can be made that we are in different times and the adage 'You ain't seen nothing yet' might describe what is ahead for investors, politicians, bankers, and the general public (globally i.e. EVERYONE).

ONLY THE MARKET KNOWS. IF YOU REMAIN OBJECTIVE IT WILL TELL YOU WHERE IT WANTS TO GO. PATIENCE and DISCIPLINE is the KEY 

THE EURO

5 comments:

beetlejuice said...

Look at the Euro/Usd and that will tell you where we go from here.
Very bearish reversal on the Euro today. Has formed a bearish flag off the double bottom and now the set-up for next week is for a break down.

USD looks comletely inverse and looks set to break higher.

The dollar has hardly reacted down since the nealry 1000K point explosion in the DOW this week.

That is a clear signal in itself.

Did people REALLY think it was going to be as simple a fix as that for Europe?

Fibocycle said...

Agreed with the EUR/$ scenario.
Europe..and the entire world for that matter--wont be 'fixed' until the banking system is flushed of the individuals perpetrating this contagion and a new breed of politician has the courage to confront the related obstacles to freedom and justice.

scotty said...

Pete,
You forgot one thing in this post

http://www.youtube.com/watch?v=YdwVVI4B3oY

Fibocycle said...

excellent.. Ginger Jack and Eric are AWESOME....

Fibocycle said...

Very weird Scotty--we are thinking along the same lines: When composing the entry i considered putting a Clapton Youtube link up with the charts