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To many Elliott can be very frustrating and tedious and this can be a major turnoff in using it. But I noticed this morning a change in the Elliott count for BHP. I am writing this editorial a few days in advance as I will be bush in Cambodia and thus thought it prudent that I should write it early should I be so lucky to be so deep in the bush that there is no internet!
So it is Monday March 8 and this is the 60 day Elliott count:
click to enlarge
On Friday the count was:
click to enlarge
It is not me getting it right or wrong it is Elliott adjusting to another day’s data. You can sometimes go for weeks with no change and then a sudden change of direction. As it is so unusual to see such a sudden change of reading I thought it worth noting.
What happens is the wave four of the five impulse wave down becomes the wave three of the new impulse five wave upward pattern.
I am using a 60 day count here and sure if you use other period counts you will get a very different picture again. This is yet another source of frustration for would be users.
I can’t think of any technical indicator that will have given better forewarning of the happenings of the last couple of years or that will give clarity to the future. It often means that you just have to stand aside until the set-up you want – whatever indicator you are using - comes to pass.
That is the part of the discipline of trading and investing. Patience is an essential ingredient.
Enjoy the ride
Tom Scollon
Chief Analyst
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