.
, |
|||
Critical Mass UpdateWave Signals
Commentary With the recent trading action and with tomorrow's (Tues) Fed meeting, and especially with the Elliott Wave patterns we potentially have developing, I thought a look at the 5-10-30 year yield charts was appropriate here. And what an interesting set of chart patterns we have. All three yield charts have what very easily could be Elliott Wave contracting triangles, with Wave "E" completing or already completed. If this is correct then thrusts to new "yield highs" would be the expectation. And if that occurs then it could complete a very large 5-wave pattern from the long term June yield lows. Now there is also the scenario that the rally in yields from June to August already completed 5 up, but I view the "alternate count" I am presenting here as just as probable. If we thrust up out of the current pattern, then it will become the preferred count.
And of course
if we do get the large thrust up in rates, then the expectation
would be several months of correcting that 5-wave move up from
June. So it would also be an excellent trading road map. Remember
my "critical mass" scenario of a few weeks ago. Given
the dollar's potential 3rd wave decline scenario to the lows
80s, I think it possible we could see that occur in conjunction
with an interest rate spike, and perhaps gold has a large spike
up as well. Basically conditions get rather "wild and volatile"
for 2-4 weeks. And I think that would also correlate well with
a large stock market decline. Again, this is all "guess
work" on my part. But I believe it is a very possible scenario
given the chart patterns in the various markets I have presented
to you. MIKE DRAKULICH FREE
2-WEEK TRIAL |
