Then – Oct 24, 2012 – and now charts ;
We are at $15 and the C wave is now vector equal to the A wave, a fairly common occurrence. In more detail we get;
All the required subdivisions in the count appear to be there, so a low here is what you would expect. Also the RSI is at its lowest point in 3 years and has been there for almost a month. We are now well below the March 2009 lows of $18. This is the time to buy!
Just four days ago we showed the FTSE and commented that there were three possible triangles in this structure from the lows of March 2009, and that the whole thing definitely had all the characteristics of a B-wave. In the new Elliott Wave Financial Forecast that came out yesterday this was about the only chart evidence that the boys from Gainesville offered to “prove” their argument that we had topped. Neither they or I often use the Footsie as a beacon for the rest of the equities and the fact that the top actually occurred on the 22 of May, now more than a month ago, makes it a less likely coincidence. Anyway, I will enjoy the flattery.
See previous blog. As with all triangles, the breakout can happen either way. In this case it did not go the preferred way, on top of which our stop-loss ceased to function due to the large gap open. But, on the positive side, this outcome is, paradoxically, more positive as the likelyhood of this being a wave 2 (instead of a b) has increased.
This could be the start of a new beginning.
A buy for the entrepreneurial.