FTSE100 – Continued Review

Weekly: DTosc still OB and in OB zone – hence weekly market market action since last post – Too risky to buy when the DTosc is in this position as the high probability move is a pull-back of some degree.

10082016 - FTSE100 Weekly

Daily: DTosc is OB and n the OB zone – a pull back in price is highly likely in the next week or so!

Couple this with the WEEKLY DTosc position and you have 2 time frames calling a overbought position

10082016 - FTSE100 Daily

Odds are on for a pull-back correction of some degree (Impossible to judge the severity) or a sideways market UNTIL the WEEKLY DTosc either enters the OS zone OR makes a bullish reversal UNDER the 80 line (closer to zero the better)

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The NEXT MAJOR BEARISH market section in 17 years time[2034]

There’s loads of Cycles dates in the next UP phase and those have been previously published on the pages on here and onto blog posts too – please take your time to familiarise yourself with them.

This next UP cycle is as the name suggests UP – refer to a chart of 1982-2000 for an approx view of what it should look like – in essence it will be UP!

So what about the NEXT DOWN cycle then?

Well I’m going to publish what to look for 17-34 years PRIOR – keep a reference of this page to see if its correct or not – it’s not extensive – I’ve published on other posts other KEY dates to watch as well.

Some of the following dates will NOT work out – they’ll fail or not appear – this happens in all the previous sections going back a hundred+ years, its just something that you have to accept, however, many will work!

The market of choice at the moment is the NASDAQ – it’s where all the fever money has gone into of late, prior to the 1990’s it was the DJIA – you need to use charts for the market of the time.- why? Because you need to watch the market where man/woman are placing most of their speculative money, this market will react well to Time Cycles and show you the panic and greed of mankind all reflected in a handy chart of actual market prices recorded and displayed for all to see.

Here’s a table of Timings:

Box 1                 Box 2                 Box 3                 Box 4

09/02/1966        14/05/1969         07/10/1974         18/06/1982   – Chart 1 (1966-1983)

14/01/2000        10/10/2002         11/10/2007         21/10/2015   – Chart 2 (2000-2017)

05/07/2032        04/05/2035         26/02/2041         21/12/2050   – Projected from Chart 2 DATES

23/09/2032        22/06/2035         06/04/2041         25/01/2051   – Projected from Chart 1 DATES
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Can Stock Values Simply “Disappear”?

This is a great reminder as I encountered people who couldn’t understand this over the past few weeks – As you should know I don’t subscribe to the Author’s views on Elliott Wave Theory – just the content of the post.

Can Stock Values Simply “Disappear”? Yes.

And it’s happened before, too — just think back to the 2007-2009 financial crisis

By Elliott Wave International

On Wednesday (Jan. 13) CNBC reported that,

“Almost $3.2 trillion has been wiped off the value of stocks around the world since the start of 2016, according to calculations by a top market analyst. U.S. stocks are now off $1.77 trillion, while overseas stocks are down $1.4 trillion.”

Stocks rallied on Thursday — but then tanked even harder on Friday, which probably made that $3.2 trillion figure even bigger.

But how can that be? Doesn’t money simply move from one asset class to another?

Our readers have asked us this question before — especially during the 2007-2009 financial crisis, when 54% of the Dow’s value got erased in just 18 months.

You may be wondering this, too. Well, here’s an answer — from Ch. 9 of Bob Prechter’s New York Times Business bestseller, Conquer the Crash:

Financial Values Can Disappear

(Excerpt, Conquer the Crash, ch. 9)

People seem to take for granted that financial values can be created endlessly seemingly out of nowhere and pile up to the moon. Turn the direction around and mention that financial values can disappear into nowhere, and they insist that it is not possible. “The money has to go somewhere … It just moves from stocks to bonds to money funds … It never goes away … For every buyer, there is a seller, so the money just changes hands.”

That is true of the money, just as it was all the way up, but it’s not true of the values, which changed all the way up.

Asset prices rise not because of “buying” per se, because indeed for every buyer, there is a seller. They rise because those transacting agree that their prices should be higher. All that everyone else — including those who own some of that asset and those who do not — need do is nothing.

Conversely, for prices of assets to fall, it takes only one seller and one buyer who agree that the former value of an asset was too high. If no other bids are competing with that buyer’s, then the value of the asset falls, and it falls for everyone who owns it. Financial values can disappear through a decrease in prices for any type of investment asset, including bonds, stocks and land.

Anyone who watches the stock or commodity markets closely has seen this phenomenon on a small scale many times. Whenever a market “gaps” up or down on an opening, it simply registers a new value on the first trade, which can be conducted by as few as two people. It did not take everyone’s action to make it happen, just most people’s inaction on the other side.

The dynamics of value expansion and contraction explain why a bear market can bankrupt millions of people. At the peak of a credit expansion or a bull market, assets have been valued upward, and all participants are wealthy — both the people who sold the assets and the people who hold the assets. The latter group is far larger than the former, because the total supply of money has been relatively stable while the total value of financial assets has ballooned. When the market turns down, the dynamic goes into reverse. Only a very few owners of a collapsing financial asset trade it for money at 90 percent of peak value. Some others may get out at 80 percent, 50 percent or 30 percent of peak value. In each case, sellers are simply transforming the remaining future value losses to someone else.

In a bear market, the vast, vast majority does nothing and gets stuck holding assets with low or non-existent valuations. The “million dollars” that a wealthy investor might have thought he had in his bond portfolio or at a stock’s peak value can quite rapidly become $50,000 or $5000 or $50. The rest of it just disappears.

You see, he never really had a million dollars; all he had was IOUs or stock certificates. The idea that it had a certain financial value was in his head and the heads of others who agreed. When the point of agreement changed, so did the value. Poof! Gone in a flash of aggregated neurons.

So, the answer comes down to “money” vs. “value.” Financial values don’t move from one asset to another. They can just disappear.


There is no time to waste

Global stocks lost $3.17 trillion in the first 2 weeks of 2016

Were you ready? Are you ready for what’s next?

You can be.

[Urgent New Report] How to Survive and Prosper in this Global Financial Crisis. With global stocks losing $3.17 trillion dollars in the first 8 trading days of 2016 (CNBC), NOW is the time to download this free report from Robert Prechter. This report was adapted from Prechter’s New York Times bestseller, Conquer the Crash. You’ll get a list of “Imperative Do’s and Crucial Don’ts” for surviving and prospering in today’s volatile markets. There’s no time to waste. It’s time you prepare for what’s next, NOW. Read the Complete Report.

This article was syndicated by Elliott Wave International and was originally published under the headline Can Stock Values Simply “Disappear”? Yes.. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

More on the Market

Capture

Ok we’re looking at the chart ABOVE this text – Mid Cycle CRASH/PANIC, followed by market finding a level Circa 50% of the high! Then when the next UP Time Cycle starts – COMPARE ALL the charts!!!!!!!!!!!!!!!!!

Capture1

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Buy signal

Capture

Relief rally of something more?

Who knows, a buy signal was given – it didn’t meet the requirements exactly but it was very very close, lets see how (if) far it jumps – might be a few decent % gains in it

The market HAS, HAS to be positive at the end of today’s trading, if not the Buy signal was false

Lets see what happens in the days/weeks that follow.

 

 

Market sections – Familar?

Of course they are – the same Time Cycles cause these market patterns

That is WHY the generic pattern is the same

BEARISH Deflationary Time Cycles first =

DJIA 1897-1917

1897-Dec 1914

DJIA 1965-1985

1966-1982

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Exactly 12 Months and counting

Countdown:

12 Months to go EXACTLY

until the current BEARISH Time Cycle ENDS and the next UP/Inflationary 17 Year Time Cycle

BEGINS

How to DOUBLE your return with half the risk

This post is for the Investors amongst you rather than the traders, although it is something that you should ALL be aware of regardless of your stance.

If you have or plan to obtain a Stock Market Almanac – this strategy is in there and has been for a number of years!

(more…)

When will Bank Base Rate Rise?

I continually hear people from all over the place talking about Bank Base Rates.

You know they type of conversations “When do you think it will rise?”, “It’s been low for so long, don’t they [the bank] know what damage its doing to my income”…..etc

Well of course they are correct, low rates affect many people differently and they have been going on since 2008 now which is a long time.

Or is it?

(more…)

How to Invest Properly – the ONLY way

The vast majority of people Invest incorrectly – they only get away with it because the markets NATURAL movement is continual GROWTH.

This makes poor Investors think that they are good, it makes brokers look like they know what they’re doing and how the markets work – through in a decent bear market or decent market correction and they are quickly exposed as their funds/clients funds start reducing in value.

There is a right way to Invest though and it goes against EVERY piece of Investment advice out there – If you can TIME the market you will beat the masses big time

funds won’t tell you as they’re not allowed to do this, brokers won’t tell because they don’t know and that all leaves you to the moves of the markets.

Look at these charts that follow and tell me it’s not common sense or best to get in at the KEY turning points – ALL the key turns that follow were the RESULT of a key Time Cycle(s) – I have seen this too many times for it to be coincidental, too many times

1982-2000

2000-2017

1982-2017

To ENHANCE returns you can now buy 2 x ETF’s of an Index!

The NEXT cycle is UP – the general market action after 17 years WILL be very similar to that of 1982-2000 – not exactly but similar in form and it will rise on average at a faster rate than 2000-2017 rates.

The time to BE a buy and hold investor is fast approaching – compound up 50% growth annually over 17 years and you’ll see the power of buying and holding during the RIGHT and CORRECT market conditions

Good Luck