A footnote to my bearish stock market call.

A footnote to my bearish stock market call.

 

I have received a few emails hoping that my bearish analysis is wrong.  I have also received many more emails thanking me for my blog of September 22nd, alerting them to trouble.  That was about 1000 Dow points ago, and the exact top of that darling AAPL.

 

People are terrified of losing their "nest egg."  As my students know, I don't give investment advise.  I just explain the waves according to my rules.  Believe me, I do not want to see a bear market.  It is extremely bad for my business and everybody else.  However, my conscience would bother me if I did not explain what I see.    

 

The good news is that there will surely be bullish and bearish waves to trade on smaller time frames.  Also, there is always the possibility that a large bullish wave will form on the way down.  My Wolfe Wave Practioners will see it, if/when one forms.  (Please see my previous blogs on this subject.)

Potential stock market crash

Bill Wolfe says: There is a potential stock market crash coming!

 

As all of my students know, I never incorporate fundamental, news, politics or the like, in my market analysis. My opinion is always based on my fifty-years of wave study.  The waves cannot be more bearish.

 

On the monthly chart, the long term bullish wave was satisfied when price hit the Target Line in 2007. (Chart not shown.)

 

Since then, price is in the the process of forming the next bullish wave. Wave 4 of this potential bullish wave has enormous "pressure points" pressing down on the potential 1 to 4 line.  The lesson on "pressure points" calls for price to be forced down "with a vengeance." 

 

For this to happen, price would have to go below a price that is too scary to mention, but that is what the rules suggest.

 

Even if the market would make a new high, it would still be only a 3 point for the next bearish wave. 

 

If I am wrong on this, I apologise to the followers that lost opportunity.  If I am correct, I hope to have you all as future Wolfe Wave Practioners.