Decline to the previous 4th wave!

The decline has finally been confirmed. As one wise guy has said "even a broken clock is right twice a day." But, at least, this time the decline appears to have begun. You should be in cash or short the market waiting for the next opportunity to buy stocks. This decline has a long way to go but there will be many opportunities to make money along the way. According to the Elliott Wave Theory, the next stopping point for the market is at the previous wave 4. The previous wave four for the Dow index is at 10,929. So a good place to buy the market would be around 11,000. Right now the Dow is at about 11,800. There should soon be a move up from 12000, and then a sharp decline to about 11,000.

Confirmation of trend change

It was a long time coming, but the trend change is now more evident. The question is: how low will it go? But the thing to know is that the 20 day and the 50 day moving averages have been pierced. Is this an infallible sign of a downturn? No! But it is a significant clue as to trend. I believe the trend has decisively changed. My strategy has been to sell all of my long positions and to go short the market. A more cautious strategy would be to hold cash and wait for a new uptrend. But remember the recent uptrend has lasted two full years. I expect this new downtrend to last a long time also. Enjoy the ride down! This is what makes following the markets fun.