No further comments other than the e-wave may not as yet have occured , otherwise the story remains the same!      As always, cick on the chart to enlarge.
Year: 2009
CAT again Jan 26
Sometime ago, before this website, I showed charts of John Deere and Cummings Engines using them as a proxy for heavy equipment. All showed indicated that a 5-wave bull wave of many years was coming to an end and therefore a drop of at least 61% should be expected. More recently I suggested that Cat may trade back up to about $50. We fell short of that ($47,50) and now it looks like we are going to make a new low sometime in the not too distant future. Wave 5 down seems to be starting now! (a few weeks  ago)
GE Jan23
Someone asked me why I thought GE should go down when it is quite obvious that this is a very well run company (Jack Welch and now Jeff Inmelt, 6sigma, 20% hurdle rates and, by the way, the ONLY original stock left in the DOW ). What is there not to like? Well, apart from the minor little inconvenient fact that there are a few small flies in the ointment, the beauty of EW is that it is not concerned by any of that. It simple is pattern recognition, nothing more, nothing less. So have a look at this chart.
Notice the classic correction, an a-b-c down within which the c is approximately equal to the a. At that point it gets a little silly as the stock would be worth close to zero.
Dax home of the “wirtschaftwunder”
Here too we have a good deal of ambiguity – the best count suggest that the 3d wave had a failed (by very little 5th and that most of the past few months were spent on addind the 5th wave. This is not necessarily the low as in 2000/2003 it lost about 6000 points out of 8000, but it does suggest that a fairly solid rebound may be around the corner soon. This one is a great precurser for north-American markets as it had the same double top that , for instance, Citigroup and quite a few others had. Today it is within 100 points of the low set months ago, we will see if it holds.See the RSI which suggests it might. Germany is , of course, also the country of “schadenfreude”, try not to become the subject of that.