Wednesday, December 25, 2013

Santa Delivers His Year End Rally!!!

Ho Ho Ho!!!  DJIA Long Call wasn't a lump of coal!  Here is the new chart and all I have changed since my last post, on the 17th, it is the addition of the (4) on the right, marking the 4th wave.



Now, the actual prices have changed a bit because of the automatic adjustments for contract changes but I didn't even want to adjust the location of my wave counts because they are close enough and I wanted to leave the chart as close to its original state as possible.  In the previous post I wanted the green arrow to estimate the end of the 3rd wave and I'm satisfied with the result.  So, I guess it was in my Dec 10th post that I read the sell-off that was the perfect setup for the year end rally -- from that first post to this one every call has been right on the money and I have Elliott to thank; I just try to post what it is telling me to the best of my ability.  At this point I need to take a step back and look at the bigger picture and that will be a whole new series of posts, I guess.  This series has about run its course and there is no need to try and be a hero and make a call because we are nearing the end of a large pattern and where we go from here and when is unclear -- at least at the moment, but I just got home to the West Coast from boyhood home of Boston and haven't done my due diligence yet.  Anyway, I hope someone, anyone, got something from these series of posts and I hope to make some more in the not too distant future.

Merry Christmas and Happy Holidays!

-- HollywoodTrader




Tuesday, December 17, 2013

DJIA Trade: From Short to Long!

Here's the new, possible, setup:


In my first post of this series I was looking for a sell-off, which played out nicely, to setup a long Santa Clause / New Year rally.  Here's the post from 12/10 in it's entirety... "A possible sell-off is setting up before the year end (Santa Clause), and then new year rally.  We have a clear 5 waves up with what seems to be the a and b of a zigzag correction.  The a and b could also be a 1 and 2 but I don't foresee that much of a sell-off going into what is traditionally the most bullish time of the year.  We could even have a truncated zigzag with and aggressive rally out of it well into new highs."  We didn't get the truncated zigzag -- which was a low probability, but was worth mentioning -- but everything else came to fruition and now it's time for the second half of the prediction: the rally.  It all obviously rests on the FOMC decision tomorrow but the setup is perfect for the rally and it seems as though the market is telling us that there will be no taper tomorrow allowing for the rally to new highs into the new year before a significant pullback in the spring.  I think we are in store for a pullback of at least 10% that could last into the summer of 2014 but it will fuel the new rally that will have us making new highs at the end of 2014 -- time will tell.

-- HollywoodTrader

Thursday, December 12, 2013

DJIA trade complete!!! 2 day - 340 tick profit potential.

Here is the final result:



So from my prediction in the first post of this series on Tuesday, two posts ago, the DJIA has followed my un-altered red arrow right down to the target price zone right in the target price time horizon.  I wish I could have taken more advantage of it but I had to put my Assistant Directors hat on today for a commercial shoot.  I caught a nice chunk today but left my orders to cover much higher than I would have if I was able to be immersed in my screens all day.  Anyway, let me cut to the chase, this has been a demonstration of the power of Elliott Wave if one has the patience and diligence to study it to the point that it becomes almost second nature.  I made this my first series of posts because I knew the move was going to be large, fast and precise and it didn't let me down.  Now, these large moves don't happen very often but since the nature of Elliott Wave is fractal smaller moves of this nature happen several times a week in the instruments that I trade.  If you haven't taken a long look at Elliott Wave yet I suggest you do because it is by far the most powerful weapon one can wield in the trading arena.

-- HollywoodTrader

Wednesday, December 11, 2013

DJIA developing correction UPDATE!



In my first post I identified a brewing sell-off and the screencapture had a price of 16042 (the bright green horizontal line across the screen).  My red arrow seemed to be floating in space ahead of the current price action which was rallying higher right at the time of my capture.  Now I guess it is about 44 hours later and the predicted sell-off is in full effect and the screencapture has a price of 15797!  Not bad for my first prediction and post on the new blog.  This is the power of Elliott Wave if applied correctly.

Happy Holidays!

-- HollywoodTrader

Tuesday, December 10, 2013

DJIA 5 Waves complete w/ developing correction.



A possible sell-off is setting up before the year end (Santa Clause), and then new year rally.  We have a clear 5 waves up with what seems to be the a and b of a zigzag correction.  The a and b could also be a 1 and 2 but I don't foresee that much of a sell-off going into what is traditionally the most bullish time of the year.  We could even have a truncated zigzag with and aggressive rally out of it well into new highs.

-- HollywoodTrader