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Re-scaling Global PerceptionJoseph Russo BACKDROP
On September 14, 2006 with the Dow trading at the 11,500 level, Elliott Wave Technology forecast an imminent critical mass building within the Industrial Average. At the time, we shared those observations in our presenting Equity Markets Approach Critical Mass. Throughout our chronicling the decisive capture of the sudden 6% decline in March through the power of chart analytics, we were fully anticipating fresh historic highs for the Dow Jones Industrial Average well north of 13K. ECONOMIC COUP D'ÉTAT After decades of monetary alchemy and overbearing influence, the aging global financial sphere continues to play out one of its most overt campaigns of economic coup d'état of the past 100-years. One may surmise that by design, lack of fiduciary oversight, or both, that the aging sphere has in effect, usurped all of the world's central banks along with their respective sovereign governments. In order to preserve itself, it now appears to have discreetly acquired a full-spectrum control of all things financial. Financial Sphere's Slam-Dunk Victory catapults U.S Equities toward 7-year highs The global financial sphere has indeed taken on a life of its own, perhaps subsuming that of the real economy itself. Held to account only by the ability to sustain itself, it has morphed into a most fragile, highly addictive paradigm, requiring ever-frequent fixes to avoid the slightest measure of interruption to which the mere hint, would engender the excruciating pangs of tumultuous withdrawal. One could speculate that to maintain viability, the aging sphere is fighting for its very survival and has resorted to anointing itself both the driver and buyer of every resort. With unfettered grip on the economic baton, it appears quite capable of shaping perception relative to the strength and integrity of financial markets around the globe. It is becoming abundantly clear that the United States is no longer the epicenter to this rather old and maturing dynamic center of global trade and influence. The USA remains a key player however, and at present, maintains monopoly on the worlds reserve fiat currency. With the king fiat nearing multi year lows, many global equity markets have hyper-extended their already parabolic bullish advances. From their lows in March, the U.S markets have suddenly awakened with a renewed sense of exuberance toward equities.  On balance, global equity indices remain extraordinarily bullish in nominal terms. At times of such extreme exuberance, it is critical for traders and investors to respect elevated risks as markets enter or extend near vertical price advances. Complacency and overconfidence that fresh new highs will follow each and every correction amounts to nothing more than a recipe for watching massive paper profits vanish. Alternately, one does not want
to be short equities, or in cash as markets continue rising amid
a most spectacular bullish run, especially as one's Elliott Wave Technology has been monitoring this fantastic global equity boom diligently, and with great interest for some time now. In addition, we are closely monitoring the recent resurgence in U.S equities. Recognizing the financial markets current vigor, while remaining fully cognizant as to the effects that "real" monetary inflation can have on equities, we are compelled in the best interest of our readership, to begin monitoring a broad array of global indices. We are monitoring global markets for long-term structural integrity. Our trusted brand of analysis will blanket the market action to reveal early fracture points, and danger zones warranting investor and trader attention. Moreover, we will be providing price targets for the intermediate and larger degrees of trend. To address the "real"
monetary inflation effects Elliott Wave Technology
has earmarked the following markets for such coverage: The next scheduled quarterly report for the above markets is for mid-June however; a partial chart preview of these markets is available right now. To add value, and best serve the readership at large, we will begin including these quarterly reports with our Interim Monthly Forecast. Given recent market developments, we thought it prudent to release early preview to this report prior to its scheduled release date. The current dynamism of the global financial markets is extraordinary. With epic dynamism comes fantastic opportunity accompanied with equally associated risks. Considering the sheer mass of impending structural imbalances, along with the array of geopolitical challenges confronting the present financial sphere, it is with great honor and sincerity that we provide the most careful and measured guidance to protect and reassure individual traders & investors in the challenging, and rewarding years ahead. Below, we have provided an example of our comprehensive long-term structural analysis for the Dow Jones World Stock Index. By the June publication date, we will have completed analysis on all of the charts from the above list in similar fashion. *** From Elliott Wave Technology's MILLENNIUM WAVE QUARTERLY REPORT (Preview) THE DOW JONES WORLD STOCK INDEX:
We trust the value in having access to such a precise long-term navigational monitor is self-evident. Those yet to board such markets, or seeking to add exposure, may strategically and prudently do so with reduced risk, at identified levels of key longer term support. Alternately, those seeking to "take partial profits" may do so as markets strike overhead areas of resistance, or reach resting targeted milestones. Most importantly, in light of the violent, fast, and parabolic nature in which many markets currently trade, it is vital that one be fully cognizant where key levels of structural integrity may breach, and potentially cause the entire house of cards to crumble. Bear in mind, what has taken years to build, is typically destroyed in a matter of weeks or months. Moreover, as evidenced by the performance of the Japanese Nikkei index over the past twenty years, after scaling such incredible heights for extended periods, when such wreckage occurs, it often lasts for considerable lengths of time. Our approach to long-term forecasting is by no means arcane. We do not "predict prices;" nor become reliant upon previously stated predictions coming true; instead, we adapt to the dynamic price action as it unfolds. Doing so impartially, allows us to formulate astute and measured guidance based on the dynamic evolution of price. Trade Better / Invest Smarter... Joseph Russo
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In April of 2006, we were quite aware of the
parabolic price movements taking place amid numerous global equity
markets. We weighed in on the matter with a piece entitled 
