|
Maybe, but I don’t think so. Markets are most likely just ‘letting off some steam’, as they often do when they reach Wave Five.
Let’s see what the charts tell us:
click to enlarge
My default chart is the 90-day Elliott and this indicates the market got close to a second Wave Five, so you would expect some ‘jostling’ at the top. Both buyers and sellers will be somewhat undecided in the near-term. And there is always plenty of news around for investors to use as the ‘bogey man’. Good news and bad news are both in ready supply at present.
My 60-day Elliott:
click to enlarge
This is indicating an orderly retreat. The oscillator has just begun to ease off but it could kick up again.
The 30-day:
click to enlarge
This suggests a small retreat, and sooner than the 60-day suggests. I don’t fiddle with the day counts until I get what I want to see. I use different counts to challenge my core thinking. And by that I don’t mean ‘expectations’. In the markets - and in life - expectations can lead to disappointment.
Financials
I am currently holding financial stocks, so I keep an eye on the XFJ:
click to enlarge
This suggests a ‘dip’ rather than a retreat or pullback. It also shows a new high ahead - and a nice one at that - so I will hold on to my financials for the moment.
I will be buying new stocks but I want to let the jitters settle a little first. And then maybe next week I will write about stocks I am keeping my eye on. Wink, wink!
Enjoy the ride
Tom Scollon
|