As expected the second step ended on Friday morning, and the market may be ready for the 3rd step down which itself has 5 sub steps. The coming decline will be sharp and can take indices and most stocks to new lows below October lows.
Oil will continue to go down and Volatility can go to new highs. To see clearly the elliott wave , you can look at NYA ( New york Composite Index). It peaked in November and on Thursday it completed the step two up and started Step 3 down on Friday morning. SPY and DJI did not complete their peak till late December and after completing the first step down , it completed a-b-c rally in step 2 up on Thursday . It started Step 3 down on Friday morning.
Russell 2000 had a peak in March last year and had a nice rally till late in December. Recent rally was relatively weak and it is ready to go down again.
Dollar made new highs last week and euro made new lows. Since most people are bearish on Euro and
Bullish on Dollar, we will have a reversal as early as today after making new lows and lasting several weeks. Eventually Euro will go down again and may go down below parity.
In the new Elections, the leftist party won a majority. Either Germany ( with very large growing trade surpluses) either agrees to renegotiate Greece's debt in favor of Greece or Greece will split from euro zone. With depression going on in Greece, they have no other choice.
We have so much natural gas , that unless USA agrees to export gas world wide, Natural Gas prices will continue to go to new lows and our Natural Gas Motif will continue to go higher .
NYA
SPY
DJI Big Decline has started to new lows
DJT Going Much lower
IWM' Ready to go down
TNA Going Lower
TZA Rally on the way
UVXY Going Higher
SVXY Going lower
GLD Going Lower and then a nice rally soon
GDX Going Lower and then rally
NUGT Decline and then a nice rally
XLE Going Lower
ERX Going Lower
ERY Going Higher
YINN 3X Chinese ETF
Yang
DGAZ Going Higher
Oil will continue to go down and Volatility can go to new highs. To see clearly the elliott wave , you can look at NYA ( New york Composite Index). It peaked in November and on Thursday it completed the step two up and started Step 3 down on Friday morning. SPY and DJI did not complete their peak till late December and after completing the first step down , it completed a-b-c rally in step 2 up on Thursday . It started Step 3 down on Friday morning.
Russell 2000 had a peak in March last year and had a nice rally till late in December. Recent rally was relatively weak and it is ready to go down again.
Dollar made new highs last week and euro made new lows. Since most people are bearish on Euro and
Bullish on Dollar, we will have a reversal as early as today after making new lows and lasting several weeks. Eventually Euro will go down again and may go down below parity.
In the new Elections, the leftist party won a majority. Either Germany ( with very large growing trade surpluses) either agrees to renegotiate Greece's debt in favor of Greece or Greece will split from euro zone. With depression going on in Greece, they have no other choice.
We have so much natural gas , that unless USA agrees to export gas world wide, Natural Gas prices will continue to go to new lows and our Natural Gas Motif will continue to go higher .
NYA
XLE Going Lower
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