I’ve been asked about Elliot Wave. I used to follow this system, and I used it to great advantage in calling the 1974 bottom. But the method became so complicated (with extensions) that I decided to leave it to my friend, Bob Prechter, and I would stick to Dow Theory. Speaking of Prechter, his latest headline (he’s very bearish and believes we’re ending a super-cycle bull market) – “AN EPIC OPTIMISM THAT CAN BE REVERSED ONLY BY A HUGE BEAR MARKET.”
That’s Prechter’s opinion and warning. As for “an epic optimism,” Investor’s Intelligence’ tally of bears is down to 13.3%, the lowest percentage since 1987.
From a Dow Theory standpoint, I continue to use the orthodox method, meaning that I stick with the D-J Averages and volume indications. The Dow has had every opportunity to confirm the record Transport high, but so far the Dow has (ominously) refused to confirm. I’ve stated that ... Log in or subscribe to continue reading.