Countdown to the Crash
Inverse ETFs are positioned to SOAR, as long stocks and indices plummet violently. See the New-Wave Elliott™ candle charts reversing from a Bullish wave 2 correction, into an impulsive wave 3. Wave 3 – often the longest and strongest of waves 1, 3, 5, is at least 1.618x the perpendicular length of wave 1.
Inversely correlated to all long stocks & the S&P, view the VIX volatility index, Gold, inverse financials, inverse small-cap, Emerging Markets all on the launching pad – confirming the count-down to Blast-off has begun!
In a Bear Market Free-fall, all long stocks get killed, the "baby and the bathwater" become indistinguishable, as fear of survival strikes the heart of the collective unconsciusness, like as a pack of hungry lions circling for the kill.
The bearish Diag II signals the beginning of a long, bearish trajectory, just as the its reciprocal bullish Diag II indicates a long, bullish flight. Void of corrections, the culminating Bear Market Supercycle Wave, propelled by fear,results in a far more energetic catapult than Bull Market fueled by greed. Meanwhile corrections, where misguided bottom fishing normally occurs, become mere pauses. The velocity and acceleration of such a plummet, wipes-out in unwary investor. The linear-projecting primitive mind fears for survival.
November 6, 2015