Ewj: elliott wave

Quote from TraderRob:

Here is an update to my trade setup from this past Tuesday morning. My buy stop is still just above Tuesday's high. I will move my buy stop to breakeven(1514) when the market trades at 1441. My target is still 1350.

Here is my trade setup... I have labeled the decline from the Oct. 11 high as wave 1 and today's high as wave 2 completing an A-B-C correction of wave 1.
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If you believe that the Bull Market has topped and believe that we are entering wave 3 to the downside as you suggest above, could you please explain all of the IMPULSIVE WAVE STRUCTURE that you have labeled in Wave 2 of your chart?

In Elliott terms, how does that make any sense?
 
Landis, I can only assume that you disagree with my count because of the lack of alternation between the A and C waves. At this point, I dont think anyone will dispute that the rally from the Nov. 26 low to the Dec. 11 high is 3 waves. I have labeled the decline from the Oct. 11 high as wave 1 down and the rally from Nov. 26 to Dec. 11 as an A-B-C wave 2 correction. The wave I have labeled as 2 has topped within the .618 - .786 area. My experience is that 2nd wave corrections frequently end within this area. My system got me short once we traded below the 4th wave of the C wave.... confirming that a top is in place and another leg down has begun. As for the lack of alternation between the A and C waves, I believe wave patterns are formed based on the "emotions" of the market. Those emotions may be severe or mild so I think we should consider that and not be so rigid with our counting. I am looking for a minimum move to 1350 but it may go lower or I may be stopped out before the target is reached. Once the market trades to the 1416 area I will trail a buy stop 29 points from the lowest low. My system is derived from a strategy often called "Momentum Retracement"... the momentum being the wave 1 decline and the retracement being wave 2. Landis, I dont hava a problem with your not agreeing with my trade or strategy... we need opposing opinions to make a market! I posted this trade because I believe it would be intersting to follow. I would like to see Landis and Mup(mu already does) post their trades because it would make for interesting discussion and we can learn from each other.
Have a good weekend,
Robert
 
... i am watching that 1460 spx level as well....
.... maybe for different reasons.....
Quote from TraderRob:
Attached is a weekly chart of the S&P... if we close on Friday below 1460 a "key reversal" on the weekly chart will be triggered. At the time of this post we are only 12 - 13 points above 1460. If it occurs, it would be a very bearish technical signal!
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.... thanks mup.....
... i am going to keep my eye on it.....
.... the euro looks like it still has quite a ways to go yet.....
Quote from Mup:
Looks more like an Extended lesser degree wave v (more common in commodities an extended wave 5)
Here's a weekly scribble of Soya :)
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I know you like ED's elovemer :) )

So here's one on the weekly Euro (6E) chart.

Possable Extended 5th wave which is an ED

Completed Double Zig-Zag wave (i) so were in the wave (ii) at the moment.
 

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