Matadors' have Long Since Abandoned "Deterministic" Application of Elliott Wave Theory

By: Joseph Russo | Wed, Mar 22, 2006
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Elliott Wave Analysis carries a false mystique of being an absolute methodology. The rigid deterministic slant on the theory may be grounded in its uncanny ability to (often times) project critical turning points and key price levels. This mystique, though largely misguided, is of genuine credit to the theory on balance.

At the end of the day however, Elliott Wave Analysis is by far, one of the most EFFECTIVE analytical tools to use in concert with others to navigate profitably through market cycles.

It is time to abandon the "absoluteness" and associated predictive wizardry regarding EWT. It is time to use the theory's array tools properly and objectively to maximize their absolute inherent value.

Below are some excerpts from Elliott Wave Technology's MWQR 2006:

"By now, it should be quite evident that each market moves independently to its own natural rhythms. It is the most widely followed market at center stage that should be telegraphing Elliott Waves of the most accurate measure."

"Such a widely followed market would carry the highest probability of best reflecting the mass mindset of the collective mainstream as the ultimate arbiter of progress. That market would be the Dow Jones Industrial Average."

"As such, be it contrived, manipulated, nominally illusory, or otherwise, we have focused our long wave study at Grand Dimension on the Dow."

"At this point, we take things one-day, one-week, and one-month at a time. We shall continue to interpret objectively the message the market telegraphs in real time. One absolute certainty is that markets are a dynamic, ever-changing mechanisms bound by the impulse of their participants."

"The Elliott Wave Model is also dynamic, but it too is bound. Bound only however, by the limit of the analyst's ability to accurately perceive and adjust in anticipatory fashion to the function and form of real-time price action relative to corresponding wave structures."

I, Matador... and the Taming of the Bull:



Joseph Russo

Author: Joseph Russo

Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology

Joseph Russo

Since the bubble, 911, and the 2002 market crash, Elliott Wave Technology's mission remains the delivery of valuable solutions-based services that empower clients to execute successful trading and investment decisions in all market environments.

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating their exposure to the financial markets.

Since the official launch of his Elliott Wave Technology website in 2005, he has established an outstanding record of accomplishment, including but not limited to, ...

  • In 2005, he elicited a major long-term wealth producing nugget of guidance in suggesting strongly that members give serious consideration to apportioning 10%-20% of their net worth toward the physical acquisition of Gold (@ $400.) and Silver (@ $6.00).

  • In 2006, the (MTA) Market Technicians Association featured his article "Scaling Perceptions amid the Global Equity Boom" in their industry newsletter, "Technically Speaking."

  • On May 6 of 2007, five months prior to the market top in 2007, though still bullish at that time, he publicly warned long-term investors not to be fooled again, in "Bullish Like There's No Tomorrow."

  • On March 10 of 2008, with another 48% of downside remaining to the bottom of the great bear market of 2008-2009, in "V-for Vendetta," using the Wilshire 5000 as proxy, he publicly laid out the case for the depth and amplitude of the unfolding bear market, which marked terminal to a rather nice long-run in equity values.

  • Working extensively with EasyLanguage® programmer George Pruitt in 2010 and 2011, the author of "Building Winning Trading Systems with TradeStation," he assisted in the development of several proprietary trading systems.

  • On February 11, 2011, he publicly made available his call for a key bottom in the long bond at 117 '3/32. Within a year and half from his call, the long bond rallied in excess of 30% to new all time highs in July of 2012.

  • For the benefit of members and his general readership, he responded to widespread levels of economic and financial uncertainty in the development of Prudent Measures in 2012.

  • He publicly warned of a major top in Apple on October 26, 2012 in the very early stages of a 40% decline from its all time high.

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