What is Going On?

By: Joseph Russo | Fri, Aug 24, 2007
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By the time this special update is posted, we shall be en-route to setting up our new offices on the east-coast of United States, some 3000 miles away, and a mere 40-minutes from Wall Street.

As such, this latest post - predominantly from our blog-page - will take the place of our usual commentary and index trader's edge format.

We shall resume customary editorial contributions and market updates by the first week in September.

We trust the majority of our clients have earned enough trading profits over the past few months to allow themselves a bit of a respite from the WAR until our speedy return.

Should readers have interest in obtaining access to Elliott Wave Technology's blog-page, kindly forward the author your e-mail address Email Author to receive private invitation.

Make certain to read all of the blog's archives in order to gain full-flavor and affect of our unique, unrivaled, and highly effective brand of broad market analysis.


Beyond the markets conforming to the preferred wave-counts that we have been monitoring for months on end - inclusive of interventions - NOTHING that we have not readily anticipated nor adequately prepared clients for!

In just five days from last week's intra-day lows, the Dow has rocketed up some 779-pts (6.22%) courtesy the Fed-Save with concerted global central-banking interventions.

After a slow start to the week, the Dow finally delivered notable price-captures for short-term traders!

Swing traders - who are long from any levels at or near our buy-probe lows flagged on 8-16, or from any of the other numerous "buy-signals" occurring shortly thereafter - must now prudently manage respectable open-profits with discretion.

We trust it is becoming crystal-clear for newer clients, just how PLAIN and SIMPLE it is - that our short-term forecasting model PRODUCES CONSISTENTLY STUNNING RESULTS!

"What may appear overwhelming and complicated at first glance is truly as simple as apple-pie."

Once one understands the basics of the "short-term landscape" - and how we "control it," it then boils down to a matter of discretionary trading-strategies, trade selections, and risk management - as to one profitably navigating the clearly plotted course accordingly.

We again stress, that this is not a simple task. At times, elected trades will experience drawdowns, chop sideways, or flat-out fail.

For example, from last weeks print low, per yesterday's close, we have identified and CAPTURED 415 DOW-points upon three-elected trades!

Not counting our IP/KP "buy-probes" issued against the 12518 print low - this amounts to 53.2% of the entire reaction rally - trough to peak.

The first trade was elected on 8-17 and tripped near the 13033 level with a price-target of 13265 (232-pts). The drawdown for this trade was only 11-pts and returned 232 in profit for a risk/reward ratio of over 20:1!

The second trade was elected on 8-22 and tripped near the 13172 level with a price-target of 13287 (115-pts). The drawdown for this trade was 28 -pts and returned 115-pts in profit for a risk/reward ratio of over 4:1!

The third short-term trade was also elected 8-22 and tripped near the 13204 level with a price-target of 13273 (69-pts). This trade reached its target immediately without any drawdown whatsoever!

Our branded price-action landscape also provides insight to CT traders sizing up entry, or CT position-building postures. Two such CT signals are currently in force with specific TLB price-targets.

The first CT trade elected on 8-21 and is currently 160-points in drawdown. The target for this trade is approximately 525-pts or a 3.28:1 risk/reward ratio - should the target reach objective. (Such a drawdown is only acceptable for POSITION or possibly Swing traders - contingent upon appropriate pre-defined risk-management, and trade campaign strategies - and NOT for short-term traders).

The second CT trade elected on 8-22 and is currently 4-points in drawdown. The target for this trade is roughly 580 points. If one were to use a 3:1 risk reward ratio, one would evaluate risk some 190-pts above current levels in anticipation of this trade potentially hitting its target.

As always, there are NO GUARANTEES that any given target will achieve its respective objective. WHAT WE DO GUARANTEE however, is an unrivaled, consistent, and accurate mapping of the evolving price-action landscape - in concert with the ABSOLUTE BEST Elliott Wave Analysis available ANYWHERE - bar none!

All told - our forecasting acumen, in every time horizon - is as close to the HOLY-GRAIL as one can ever hope to attain - PERIOD!

That said - we will quickly move on to the blog's short briefing:

A general note to Non-subscribers:
To protect the vested interest of our clients, "Evening Posts" will only convey actionable meaning to subscribers who have access to the corresponding Near Term Outlook charts associated with respective commentaries below.

The DOW:
Short-term, it is all about what the market does in reaction to S-1 and S-2.

Not far from S-2 is the "levitation-boundary" defending its noted price-target.

Failure to defend this boundary may set the stage for trajectory toward our next preferred wave terminal.

In kind, achievement of the S-1 or S-3 price-targets may set a similar stage.

The S&P 500
Without going into the full-on detail as we have with the recent price captures in the Dow, short-term traders had opportunity laid out to capture another 33-pts in profit from the S&P 500 index!

The two trades comprising the 33-profit points experienced virtually NO DRAWDOWN at all!

Going forward - ditto for the S&P:

Short-term, it is all about what the market does in reaction to S-1 and S-2.

Not far from S-2 is the "levitation-boundary" defending its noted price-target.

Failure to defend this boundary may set the stage for trajectory toward our next preferred wave terminal.

Similarly, achievement of the S-1 or S-3 price-targets may set a similar stage.

The NDX:
We near-about wrap the week's trade in the NDX with yet another modest 8-pt price (NO-DRAWDOWN) capture from Wednesday's Near Term Outlook.

Short-term, it is all about what the market does in reaction to R-1 and S-1.

Not far from S-1 is the S-2 boundary - defending its noted price-target.

Failure to defend this boundary may set the stage for trajectory toward our next preferred wave terminal.

In kind, achievement of the R-1 or S-2 price-targets may set a similar stage.


Safehaven readers may obtain their first month of the Near Term Outlook at 50%-off the regular subscription price by using the coupon code PROFIT on the sign-up page.

See you in September!

Should clients decide to stay in the trenches during our hiatus, we trust the transparency with which we organize and deliver our branded analysis will transcend and carry-over for the week we are gone.

All the best,


Trade Better / Invest Smarter...



Joseph Russo

Author: Joseph Russo

Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology

Joseph Russo

Since the dot.com 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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