Starting from the largest trend to the smallest:
We are in wave 4 (of 5) in the uptrend.
We are in wave b (of c) in the corrective wave 4
We are in wave c (of c) in the corrective wave b
We are in wave 5 (of 5) in the impulse wave c
Rules: Wave 3 cannot be the smallest, this makes the yellow line the max point of wave 5.
Guidelines: In an A-B-C correction,...
* Currently in the 4th wave, looks like it may make a 4th wave expanding triangle.
* Look to buy on the e wave of the triangle, follow through for the 5th wave.
* Stop at 31.99
* Target anywhere below $50 (look to sell around $45 range)
Green represents an alternative wave to the (blue). Elliott shows we are on the 5th wave of the large 10 year cycle. Whether between the 3rd/4th subwaves or whether the 5th subwave has already happened remains to be seen.
GOLD looks to have based and is potentially making a reverse head and shoulder pattern. More importantly, if it can follow through with a breakout over the longer term downwards trend, there is potential for an upside move (read: consider buying GDX). Additionally, the Dollar is looking weak and has already broken downwards. Watch closely to see if this was a...
Rail has been moving the day after earnings for the past year, consolidating horizontally thereafter
Buy in the purple range, look for 2-3 bounces to the purple range (based on number of bounces to the red range) between now and late October
Look for current consolidation pattern to never leave the green-purple range during the bounces (if...
Potentially another up day for the market tomorrow as indicated by QQQ for the following reasons
Follow through on correcting elliott wave, steps A and B completed looking to make a move on C
Cup type pattern forming, watch the development early tomorrow
Potential for reverse head and shoulders pattern, if follow through happens a potential trend reversal?
Although not a very financially strong company, look for a short term momentum trade on this reverse head and shoulder breakout if it can break the downward trend line on higher volume in the next day or two.
Reasons to Buy
Strong Annual Earnings
Strong volume buildup
Leader in a top industry
Strong compared to SPY
Strong pattern (See chart for details)
Reasons to tread with caution
Market not in an uptrend currently
Week could close below breakout point
Prior uptrend not above 30% (but strong uptrend overall suggests this is ok)