Charting Elliot Wave In The Dow |
By Todd Gordon |
Published
09/18/2008
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Currency , Stocks
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Unrated
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Charting Elliot Wave In The Dow
Every day in this market is more mind boggling than the previous day. Did anybody happen to catch the 600 point rally from the lows today following Fed's liquidity injection announcement? Simply unreal. To be perfectly blunt, I am not really the surprised. Yesterday on FOREX TV I said stocks are probably at a low. I said this for two reason. First, at the rate this market was going, the Fed was going to have to do something like cut the fed funds rate or put together some kind of comprehensive program. The second reason is we were deeply oversold and in desperate need of a bounce from this 5-wave sequence lower with Fib zone support.
This Elliott sequence, despite its funky look, has some nice Elliott relationships. Waves 1 and 5 will be equal at 10,386, and waves 2 and 4 were equal at 11,902. Am I saying I'm going to start reallocating my retirement funds back into equities -not yet. But the currency markets are most definitely taking their cues from the stock and bond markets, so we need to be watching. Traders, after working both days last weekend at the Vegas trade show and the incredible market volatility this week, I am completely beat and taking tonight off.
Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.
Disclaimer The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
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