Right on cue, the incompetent Austrian running the state of California into the ground apparently has decided there is no time like the present to yet again show his true colors (having been raised by a devout member of the Nazi party) and test the will of what must be a growing number of Americans coming to a clearer sense of their constitutional power to command their financial destiny with help of bankruptcy laws if need be.
We are talking a state with an already weak credit rating, now hovering just a few notches above "junk" status. Restructuring clearly is just around the corner ... and someone gonna lose. My suspicion is this will include most everyone, making one place where losses have been broadening for over ten years — the stock market — most vulnerable, indeed, to yet another run ... on the bank that is.
So, yesterday was the flip over to an a-b-c-x-a-b-c view of the corrective wave forming since late-May. Today is the flop right back to a simple a-b-c wave count.
Could a rising wedge be forming wave c of (b) ... whose each sub-wave (i.e. waves 1-5) divides into three waves (a-b-c)?
This sure does explain the past week's improved technical strength(!), as was the focus of yesterday's comments. Noted strength, indeed, is rightly associated with Elliott third waves (the current instance being wave 3 of c), as these typically are the most "dynamic" Elliott waves.
Now, let's see if this view holds ... or whether it will need altering. Refinements have been many of late, eh? Still, the big picture remains more or less unchanged ... and not pretty.
* * * * *
© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.
There's an easy way to boost your investment discipline...Get Real-Time Trade Notification!
