Did you see the new South Park last night? I am officially appointing myself Honorary Secretary of the "Toilet Safety Administration."
My self-elevation really could not have come at a more appropriate moment, because big names have been crapping on each other with quite some intensity this week, while in our present, technically and fundamentally weak environment there is every reason to suppose risk is ready to take a big dump, and it could be one for the record books.
So, as your trusted Secretary you can be assured toilet paper, long identified, will drain accordingly and with all necessary force.
From March '09 bottom has been forming the middle wave of an Elliott, a-b-c corrective wave down from October 2007 top. Specifically, wave (B). My general view per this middle wave (a counter-trend move) forming since March '09 bottom — a time-buying exercise that risks being followed by a throttling far worse than 2008 — has been both longstanding and consistent, although necessarily having to vary in details, as circumstance has painfully dictated. Yet most critically has been endless technical confirmation of this view. Maybe you have to be an Elliott Wave Geek to appreciate the significance of this, but one such geek made Honorable Secretary of the "Toilet Safety Administration" competently sees a rather large plunger in store here at the confluence of the Elliott Wave Principle and Indisputable Technical Evidence Exceptionally Bearish.
As always, the projection above intends to suggest the dimension of a move having strong possibility straight ahead, although not drawn to scale with respect to time. So, in this instance that is to say over the next few months five waves down challenging March '09 bottom have a strong possibility of developing.
All things considered right now, the first of these upcoming five waves down likely will hold the S&P 500 above its early-October 2011 bottom. With the bounce to follow, the "God, save our sinking ship" trade could endure as such in a fashion like Titanic's Captain Smith was depicted in 1997 in the moments leading up to being flushed with his ship to the bottom of the Atlantic.
* * * * *
© 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!
