Please check the Dashboard daily for updated market commentary.
Due to the specificity of our wave counts we have included a labeling system to break down the level or degree of the wave which represents the size of the underlying trend.
After the last day of trading each week we will go over the most salient points with weekly market comments below.
Please note, all of our updates follow New York, Eastern Time Zone of USA.
Daily Market Recap - 9.17.19 8:17 AM
The S&P 500 valuation is at an unprecedented territory despite the deteriorating global economy, the multiples keep expanding and earnings growth continues to decline. The markets are priced in for perfection as tomorrow's Fed rate cut and the CHINA trade deal in October has been fully priced into the recent rally. Any news that deviates from this perfection will crush this market, whether its the Fed, Iran, China, or Brexit, this market is waiting for the first domino to fall, and when triggered, the index is going below last year December lows. Please do not be swayed by the the persistent run up in the market, Adv/Dec line has been very weak throughout this 8 straight day rally supported by a very weak market internals, and NO, the Russell index will not get to the highs where we saw similar run up in the past trying to catch up with the broader indices but faded terribly and sold off hard. Two counts are still viable, if we take out 3028 then we may go a bit higher to complete wave D, if 3028 does not get taken out then the entire retracement is a Minute wave B of Minor wave E.
Weekly Market Recap 9.21.19 4:20 AM
We are feeling something is very wrong here with the financial system after the Federal Reserve stepped in to support the short-term lending market, this hasn't happened since the financial crisis. The banks are telling us something is very wrong. It's probably more than just a warning sign, more like an exit sign. We are printing money to bail out the banks again. And the last time the banks were doing this to shore up their balance sheets was 2008. With another QE on the horizon, the central banks are running out of assets to buy, they are buying up so much paper they're running out of assets to buy. This is the problem with QE. It is a Ponzi scheme and Ponzi schemes only fail when they become insolvent. The world is flush with currency so we don't have a liquidity problem, but we do have a solvency problem. Solvency refers to the ability of a business to have enough assets to cover its liabilities. Whether we crash now or later it does not matter, the Elliott Wave set up tells us all this money printing and QE will come back and haunt the FED for years to come.