Your Evening Read: Todays SPX Carnage Explained

Today I received no less than 50 DM’s. All asking how could I have known the SPX would tank the night before? (For those who want to read my post from last night it's below)
www.tradingview.com/...-Thought-Experiment/

Funny thing about the DM’s I got today. Many people did not know the definition of "precipitously" from last night post, so they ignored it until about 10am EST.

I try to educate to my followers.

I publish all my trades in the event my followers choose to join me. Also, there are certain things my long-time followers know about me. First, they know I prefer Bourbon...LOL. Second, I detest linear thinking when trading for profit....and Third, they know I do not believe news and events affect prices like 99% traders believe. Now, each person reading this post right now is saying ALOUD, “Well todays terrible CPI report certainly had an effect on prices today”....and that’s the problem. The biggest hurdle trying to educate novice traders or debate someone on this topic (is that today’s CPI report was an excuse, NOT THE CAUSE) is the immediate effect of a news release. I received a DM today that said and I quote, “THIS WAS A SELL THE NEWS EVENT....YOU ARE NOT A MAGICIAN”. I wholeheartedly reject his DM... there is a picture of me on the internet levitating 3 feet off the ground. LOL

Seriously, let me explain.

I practice a form of analysis called Elliott Wave Theory based on the principles of RN Elliott developed in the 1930’s. Some analysts and financial pundits believe EWT is not a valid form of analysis. I have read many of the articles that have been written that try to tear the merits of EWT apart. Here’s the part they fail to understand. EWT is just crowd behavior and pattern recognition. There are certain things people will ALWAYS do under certain circumstances when in large groups. “Large groups” is the key word. I use the word people loosely, because how could the Nobel Prize Winner John Nash come up with a mathematical equation of how a group of pigeons will move in advance of their movements? EWT does not work on penny stocks or anything that doesn’t have a large participation in. Apparently, the US Defense Industry believes in crowd behavior and pattern recognition. Artificial Intelligence algorithms and the Robotics Industry are based on crowd behavior and probabilities. The stock, futures, forex, commodity and crypto currency markets are no different.

Today’s decline is something I have been discussing with my followers each night since the June lows in the charts I post. As far as the actual debate of news and prices is concerned, that is precisely why I posted last night about a “CPI Thought Experiment”. It seemed like a perfect time to make a point. Now sceptics will read this article and say you haven’t proven anything on an empirical level. I confess, maybe not. But the one thing I have on my side is I posted that perspective the night BEFORE the report. You may say....”so what”! Still doesn’t prove anything about news/events and their effect on prices.

My only response to that sceptic is.... THEN WHAT ABOUT THE MAIN CHART ATTACHED TO THIS POST? Will that prove anything in the future despite all the news that will be release between now and then? Is that detailed enough?

Best to all,

Chris