The Wave Principle

"when you have eliminated the impossible, whatever remains, however improbable, must be the truth." --Sherlock Holmes

I viewed a youtube video on technical analysis and the man in the video uses Elliott Wave to forecast the market. I want to let you all know that the Wave Principle is not a forecast, they are rules and guidelines. When you learn the rules, you can label the waves, assuming you've labeled the waves correctly, you can build a bias, from a bias you map scenarios, from scenarios you use deductive reasoning to make a forecast.

I, personally, use Elliott Wave to supplement other technical skills and found the Wave Principle does, in fact,work. Those of who believe Wave counting is ambiguous and inaccurate are not following the guidelines correctly.

The man in the youtube video isn't confident in his forecast, therefore, must be incorrect. In every video it seems his upside and downside targets are changing over night. This gives the impression that Elliott Wave does not work; it does.

According to my counts, we are at the beginning of the end. The 2007-2009 market crash is NOTHING compared to what is coming. After we reach point "E," I expect us to retest the lows of July, if that does not hold-- a swift drop in equity prices will come and the TRUE bottom of the DOW will be at least 1,000....yes, 1,000, at least!

DO NOT rule this forecast out, it sounds highly improbable, but it is the expectation when using the Wave Principle. You are a trader, your feelings and hopes do not matter when it comes to the markets. You must keep an open mind to every possibility unless the technicals tell you otherwise.

The only thing we can do now is build or at least maintain our capital so that when the true bottom comes, we will have the capital necessary to reinvest just as they did at the bottom of the Great Depression which was followed by a 70-year bull market.