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Weekend Market Forecasting and Trading Report

By: Robert McHugh | Saturday, February 16, 2013

We are looking for one more spike rally which will then be quickly reversed. When that occurs, it will suggest wave a-up from November 2012 has topped. That spike rally should occur sometime over the next two weeks, with wave "a" possibly topping within a few days of our March 1st, 2013 scheduled phi mate turn date. There is growing evidence that a top is approaching, one that will be followed by a sharp decline of 5 percent or more. That decline will scare a lot of folks into believing the markets are starting a massive decline. Our take is that it will only be wave b-down of an a-up, b-down, c-up rally for the final wave e-up that completes the multi-decade Jaws of Death (SM) pattern. Wave c-up will take your breath away, be strong, taking the Industrials toward 15,500 to 16,000, the upper boundary of the Jaws of Death pattern, creating a false sense of security. In other words, markets are about to play with our heads, scaring investors with wave b-down, then giving a false sense of euphoria with wave c-up. Once the Jaws of Death finishes, a massive decline will begin that lasts several years, and could be worse than we have seen in centuries, Grand Supercycle degree wave {IV} down. I am putting the finishing touches on a book I have written to cope with the coming Grand Supercycle degree Bear market. The evidence that wave a-up will soon top is shown this weekend in both the Elliott Wave labeling and in mature Bearish Divergences between the 10 day average Advance/Decline Lines and prices for three major averages, Blue Chips, Techs, and small caps. We show those divergences on pages 10 and 11.

Weekend Market Forecasting and Trading Report


Author: Robert McHugh

Robert D. McHugh, Jr. Ph.D.
Main Line Investors, Inc.

Robert McHugh

Robert McHugh Ph.D. is President and CEO of Main Line Investors, Inc., a registered investment advisor in the Commonwealth of Pennsylvania, and can be reached at The statements, opinions and analyses presented in this newsletter are provided as a general information and education service only. Opinions, estimates and probabilities expressed herein constitute the judgment of the author as of the date indicated and are subject to change without notice. Nothing contained in this newsletter is intended to be, nor shall it be construed as, investment advice, nor is it to be relied upon in making any investment or other decision. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. Neither Main Line Investors, Inc. nor Robert D. McHugh, Jr., Ph.D. Editor shall be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided.

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