Lifetime Economic, Financial and Investment Map

http://www.longwavegroup.com/market/charts/_pdf/Kondratieff_Long_Wave_Cycle.pdf

THE BULL MARKET HAVE ENDED

After nearly 2 years i´m gone resume the analysis made in this post: http://ifibo.blogspot.com.es/2014/04/dow-jones-for-next-decade.html

I have little to add to the next chart, everyone should know in which moment of the market we are and it´s pretty obvious that the BULL MARKET have ENDED or its very near to it´s end.

Next Big move will be LOWER AND LOWER and maybe even to the 7.000 points by the year 2019 or 2020.

So taking that in mind, be clever and dont´try to get the lows. In every market there will be ups and downs, and there will be bull stocks, but those will be much more difficult to catch, because most stocks will go down and some could even dissapear.

I have put several rectangules marking the important turning points or big supports, the first one could go around 8500 - 8000 points, the next its the one i think it´s much more important around 6800 - 6500 area.

Althoug it can even go lower .......... but those are the levels to be thinking of turning bullish again, until then, get your money out of stock, and relax with liquidity in your pocket.

No one knows the future, but with the learning of the past, we can try to anticipate what can the future do, and with Green and Red Arrow i have mark the turning point since 2002.

Good Luck and Stops always in the markets.

Elliott_Trader: The Eight-Fold Path

Elliott_Trader: The Eight-Fold Path: A much wiser man than I called the "The Eight Fold Path" the way to enlightenment, and it is in that spirit of sharing that this p...



Just an easy post to understand much better ELLIOTT Trading.



Thanks http://www.studyofcycles.blogspot.com.es/ for so good work

DOW JONES for the Next Decade

Some times a chart it´s so clear that you don´t need much explanation.

After 2009 the price have been making Wave C, divided into A-B-C.

In case the 15.300 level it´s broken and also the trendline, the market could see a big down trend in the next decade.

While that happend, enjoy the Bull party, but always be aware for possible declines. Nothing happends from one week to another and will take months to see a big down move, but there are chances and we must follow the trend, up or down.

Time will Tell.

Dow Jones Analysis for the next Months - Weeks - Days

Monthly Chart

In any chart, first we have to look at the bigger picture to know were we are and what can happend in the future.

In this monthly chart, we can see how the price have form 5 impulsive wave from 1982 to 2007 and now its making a 3 wave correction (A-B-C).

The A wave it was sharp and fast, and make a low in 2009 so wave B needs much more time to develope. Since 2009 wave B has retrace all wave A, that means it´s a strong wave B, but also we have to think that once the wave B finish we have to be prepare for a sharp decline for wave C.

Take notice that at 16,810 Wave C equals Wave A, just to see what happend if we arrive.

If we study Benner Cycle Theory, we have to be thinking for a Top for Wave B, around 2016-2017, making a Low around 2022 but that´s all theory and what matters it´s price, and wave formations.

It´s important to know in which part of the cycle we are, and after follow the price really it´s the only thing that matter in the markets.

It´s important to notice that price it´s at the top of the wedge that comes from the top of wave 3 to wave 5. At this moment the wedge it´s acting as a dynamic resistance, so we have to be thinking that price can go higher in the next months but at the moment will need more time to make new all time highs due to that important resistence.

In the next charts we will go to lower time frames in more detail.

Weekly Chart

In this weekly chart we can see how strong the price has move, making a wave (A) and wave (B) has retrace 38,2% of the prior wave.

We are now in a strong wave C, but we have to be cautious because the price it´s very close to the 1,618% of wave (A), so at this point we have to think for a reversal at any time but it prices keeps bullish we have to move with the price at all time.

When we analyse the market we have to be aware of possible reversal points, not to get short positions but not to open new long positions (specially for buy and hold investors).

In the actual wave (c) green, we can see that´s divided in 5 impulse moves, so the brake of the wave (iv) low at 14,719 can make the price go quite lower. That level it´s the trend line from 2008 Lows, and also it´s the red “moving average” that i use to follow the trends. When we see an area with 3 mayor supports near it makes much more important that 14,719 level.

At this moment we have to be thinking of tighting out our stop in long positions, but still have to wait to open shorts. We dont´t know if this wave (c) can still go higher, so it´s important to control our risk and wait for the market to show us the way.

“The trend it´s your friend” and this phrase it´s really true so don´t try to be to smart in the markets, just think in were are the key turning points and wait and see what happends.

Daily Chart

In a daily chart we can see the bullish trend, actually making a wave (v) up, and the target it´s 16,700 (1,618$ extension of Wave A), so it´s an important area to watch. Although we have to know we are in a wave (v) and could truncate in any moment.

The awesome oscillator makes actually divergence between wave (iii orange) and actual wave (v orange) so it´s make a caution signal, but that´s all.

One of the lessons we can learn from the Awesome Oscillator (AO) is that we just have to follow it´s trend. When the AO it´s positive just look for buying at dips, because the AO it´s really a good trend follower.

The important key level it´s 15,338 specially if we don´t see higher highs above the actual mayor top in 16,588.

While the “averages” have positive slope, are below the price and the price doesn´t form a (1-2-3) pattern we have to look at the upside and try to buy at dips specially when we are in such a bullish market.

We are just in the beggining of a wave (v), so let´s wait for a dip, around the 50% retracements of wait for a trigger to get in the bullish market, always with a stop below 15,338. If this Stop is broken we will have to look for bearish set ups because the Wave (v) would have truncated

Contrarian Investment ......

Some times you have to be aware of this Bullish Covers.


The market it´s Bullish specially if there it´s not a closing price under the Key Level of 1540 on the Sp500 or 14.400 in Dow. 


We need both prices under those key levels to use it as confirmation of the trend revearsal.


After the move towards the 1540 in the SP500 the bulls fight back and in a fast move they move forward and try to break the 1600 level.



That´s the next level to consider, above 1600 we can have some more weeks of bull market, under 1540 weeks of bear market.

In between it just a fight of powers between the bulls and bears, and the smart thing to do it´s to sell in resistence and buy in Support zones. The rest of the move it´s just for professionals.

We have to be aware that this Bull Market it´s going end, in the near future, we have just to follow the differente signals and don´t  try to be fool and think we are going to see the 20.000 of the Dow in the next months.

We could see the Dow above 15.000 but i think there it´s quite low chances of see the 16.000 in the next decade.

Just take care and protect your money, that only depends in you, and never follow Bull News specially when the market it´s in All Time High.

Toronto Stock Exchange vs Spain Index

S&P/TSX 60 vs IBEX35

It´s quite clear, that all markets in the world move normally with the same trend. Some times they slow down and sometimes they speed up.

All the markets are organized and pretty much all hedge fund and big companies control all the movements in the world.

With this chart, a normal person, will think there cannot be any possible comparison between Canada and Spain, because they live in different realities.

As you can see there it´s a quite similarity between both charts, with the TOP and BOTTOWN in differente colours so it´s quite clear how normally Spain Index was making higher bit earlier.

(Just Click to Enlarge the chart)

In both cases you just have to follow the Red Trend Line, and wait until it´s broken to enter long in any chart. Buy above the red trend line.

In my study of the past to try to have an answer for the future, i think that the Toronto Stock Exchange will suffer a major correction in the next months.

I have compared the red circle (mayor tops) and in my opinion the TSX60 it´s taking in place a mayor top, had lost the green treen line of short term and in case there it´s a weekly close under 640 level   there will be a high chances to go in the next months to the 500 level.

The Blue Horizontal Line marks the Big Support for each market and will be a big resistence in the future. Sell under the Blue Horizontal Line in case it haven´t benn done.

As you can see in Spain, above that blue line the market it´s bullish and under it´s bearish, so no long positions should be open under that blue line and all longs position should be close.

Just be aware of the past and learn, so you can avoid any possible crash of the markets.

Be smart and always protect your position with a Stop Loss order.