FREE WEEK ACCESS TO THE ELLIOTT WAVE COMPASS REPORT!

The ‘Inflation-Pop’ & the FREE WEEK Promotion

As the benchmark S&P 500 accelerates lower from the September high of 2019.26, once again, for the fifth time in the last year, perma-bears are once again in full voice, forewarning of an Armageddon-style collapse. Does this viewpoint really hold credibility?

Well, it’s all about timing because one day, a couple of years from now, yes, that scenario is set to begin – BUT NOT NOW! So why not? There’s a simple Elliott Wave explanation – the different asset classes, specifically Stocks & Commodities are not aligned, they are not synchronising terminal upside patterns. This is going to be necessary if a secular-bear market is to begin.

Let me explain – back in the summer of 1928, Copper prices were still moving higher, and so was the Dow Jones 30 (DJIA) index - prices were locked into a synchronous advance. But as the calendar ran down the days, lengthening into weeks and months, come January 1929, Copper formed an important peak. Prices began to work lower, but nothing too meaningful. Meanwhile the Dow Jones pushed ahead, but not dramatically upwards until August of that year. As we now know, this proved to be forming an historical peak and the precursor to a multi-year collapse that caused the Great Depression. From top to bottom, the Dow Jones fell by -89% per cent. Copper also began to accelerate lower during the same period, declining by -76% per cent. The subsequent lows that formed in 1932 were also separated by several months, as were the peaks - but the main point was that at times of significant price development, these two different contracts from different asset classes formed a positive correlation – the price action was synchronous. Fast forward to 82 years...

...are Copper and the Dow Jones forming synchronous peaks? No, they are not confirming this necessary action.

When the more recent financial-crisis unfolded during the sell-off of 2008/09, the Dow Jones and Copper prices synchronised their price declines from peak to trough. When central banks subsequently began monetary stimulus measures from March ‘09, lowering interest rates and printing money, later introducing quantitative easing through bond purchases, both the Dow Jones and Copper benefited by staging a dramatic recovery. Now this is it – during the next 2 years, both the Dow Jones and Copper unfolded into archetypal five wave impulse patterns! That was singularly, the most important statement of its time. It proved the markets intent to continue higher once a corrective downswing had completed.

This five wave impulse advance for the Dow Jones formed its ‘orthodox’ peak in February ’11 at 12391.30, the exact month Copper formed its own peak at 10190 – isn’t that important? – sure it is!

For the Dow Jones, the following corrective downswing ended in October 2011 with Copper also trading to an important low at the same date. But when the next five wave upswing began, the Dow Jones soared but Copper began to diverge. Its actions were synchronous, but the price amplitudes showed Copper underperforming and this eventually translated into Copper remaining within its corrective downswing that to this day, has yet to complete.

Now this is where it gets interesting.

Don’t forget that Copper’s recovery upswing from the financial-crisis sell-off unfolded into a five wave impulse pattern ending into the Feb.’11 high. That means another five wave impulse pattern will follow the corrective downswing – moreover, from Fibonacci-Price-Ratio (FPR) guidelines that depicts the ongoing 5-3-5 zig zag upswing in progress from the financial-crisis low, the next five wave advance will be similar in amplitude to the first. That would propel Copper into a new record high. Basis the Elliott Wave Principle (EWP), another five wave impulse advance that unfolds once the current corrective decline has ended seems not just a chance occurrence, it’s almost inevitable.

Basis historical precedent, a surge in Copper prices of at least 100% per cent, a doubling of the price would certainly contradict, if not outright dispel any notion of the Dow Jones beginning a secular-bear decline – at this juncture.

The A-B-C, 5-3-5 zig zag upswing for Copper is replicated in so many other contracts, Aluminium, Lead Zinc, Nickel, but also for countless other stock indices, but not all of them. The exciting aspect with Stock Indices is that those that have a commodity element, and this means most of those that have underperformed in Asia since 2011, will likely outperform during the next 2-3 years as commodities begin wave C, the final 5-wave upswing.

The zig zag advance that began from the 2008/09 lows is termed as the ‘inflation-Pop’ and is itself the second component of the larger/aggregate 18-year ‘Shock-Pop-Drop’ scenario that is still playing out to this day – in Elliott Wave terms, the ‘Shock-Pop-Drop’ is portrayed as a multi-decennial expanding flat pattern. But with wave ‘B’ still in upside progress, Copper price action provides an excellent template for us to follow – so let’s not get carried away!

Asia-IRP Summit

I was in Hong Kong last week delivering our ‘Inflation-Pop’ scenario at the Asia-IRP Summit. Over 250+ delegates attended, with many institutional hedge/portfolio fund managers present. I must confess, the response to the Elliott Wave price forecasts was amazing. These professionals know what they are doing, and in a way, the commodity ‘inflation-pop’ scenario seemed to strike a chord of potential with the delegates. If these informed traders/investors see the possibilities, then its time you also took a deeper look.

The FREE WEEK Promotion

This is only the second time this year that we open the doors to a FREE WEEK promotion but we want as many people to benefit from the next stage of the ‘Inflation-Pop’. Our Elliott Wave Compass report provides you with an excellent opportunity to get acquainted with WaveTrack International’s outlook for many of the key contracts that are driving the market direction, markets like the S&P 500, Dow Jones (DJIA), Russell 2000, Nasdaq 100, Eurostoxx 50, Xetra Dax, Ftse 100, Hang Seng, Shanghai Composite, India’s Nifty 50, Australia’s ASX 200 and Japan’s Nikkei.

Furthermore, the ‘Inflation-Pop’ is described in absolute detail in two hour-long videos – Part I will be available in the FREE WEEK promotion of the Elliott Wave Compass report and describes how the Elliott Wave patterns are developing for this amazing list of Stock Indices:

• Dow Jones (DJIA)
• S&P 500
• DJ Transports
• Nasdaq Composite
• Nasdaq 100
• Russell 2000
• KBW Banking Index
• JP Morgan
• BofA
• Eurostoxx 50
• Xetra Dax
• Ftse 100
• IBEX - Spain
• MIB - Italy
• Hang Seng
• MSCI Hong Kong
• Kospi – S. Korea
• Straits Times
• Thailand SET
• Taiwan
• Nikkei
• ASX 200
• MSCI Emerging Market
• Bovespa
• Russia RTS
• Sensex
• Shanghai Composite
• MSCI China

That’s a huge list!

There are several key aspects to WaveTrack International’s Elliott Wave methodology that distinguishes us from anything you’ve ever seen before –

1. Equal emphasis is given to pattern/form and geometric ‘ratio & proportion’ – Fibonacci-Price-Ratios (FPR) form an integral part of the identification process – it enhances performance whilst assisting in overcoming the weaknesses of pre-conception, of subjectivity – rather, it exponentially increases the predictive qualities of the EWP in an objective manner
2. Each Elliott Wave chart is drawn so that the ongoing pattern illustrates completion and at the pre-determined price value as defined using our proprietary fib-price-ratios – this is demanded by our institutional clients – so why should you expect less?
3. We understand the markets tendency for positive/negative correlations – when you view our forecasts, and even the longer-term forecasts from the video series, you will see a coordinated interdependency of price forecasts – no contradictions to confuse you, as often shown in mainstream Elliott Wave publications

The FREE WEEK begins Wednesday evening (Europe Time), 15th October when our next EW-Compass report is published. Don’t miss out!

All the very best!
Peter Goodburn