It's been over a month since I last commented on the market. But wave 4 finally ended. Did it? Wave 4 is tricky. But it appears that we are really in a deepening wave. Is it wave 3 or wave 5? I think it is wave 5 but you may know that this may prove to be wrong. After all, it is all about probabilities. But it really doesn't make any difference because at the end of this wave there will be a great opportunity to go long and make huge profits. The task ahead for me is to determine the end of this wave so I can reverse my position from being short to being long. The signs that I look for are: a 20 to 1 ratio of declining stocks to advancing stocks; a change in the direction of stochastics and also in the MACD on the Daily stock market indexes. These signs are all pointing down at the present time indicating that we have a lot further to go. What can we expect at the end of wave 5? Elliotticians will expect a three wave corrective phase. This may cause an "end of the year rally"! Some will call it the "Santa Claus Rally". Traders will jump in and move the averages quite a bit higher. But beware because this is not the beginning of a new bull market. When the correction is over, the Bear market will surely resume.
