Summary: Continue to maintain a LONG/HOLD position.
It was a really rough week for the market with the DOW being down -517 points or (-3.16%). While most people will dismiss this move as a “typical correction” that we need to have, I tend to disagree.
I have argued for months that the bull market that had started in March of 2009 is coming to an end and shall soon be replaced by a bear market that will take us into the 2017 bottom and the end of the Cyclical Bear Market that started in 2000.
In my earlier post, MARKET TOP, I have concluded that the market had indeed topped out on December 31, 2013, ushering in the bear market that will develop over the next 3 years. Both my mathematical, timing, cyclical and technical work tend to confirm this fact.
Now, there is a number of other issues to consider.
First, we must wait for a technical confirmation before establishing a short position. I believe such confirmation will present itself over the next few weeks.
Second, my work shows that the bear market of 2014-2017 will not be directional. In other words, the market will not collapse as it did in 2007-09, but on the contrary, decline in a volatile fashion as it did between 2000-03.
Finally, my mathematical work shows that the market will decline into the 9,000-10,000 range and not lower. As such, I continue to advise people to get out of the way and go into cash as opposed to taking a short position. This will be a very difficult market to short.
In the meantime, we maintain our long/hold position while waiting for a technical confirmation.
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Weekly Stock Market Update. January 25th, 2014. InvestWithAlex.com
I use elliott wave and cycle work.
The bear market will last till end 2020
And the dow jones will be at 1,000 wow
right wrong this is a real target not fake alex. its called the downward 3ofMC. many of the dow30 will be penny stocks.
I will buy at that time. who cant pass up
blue chip penny stocks wow right. please email me Alex or post your anwer
Hi John,
I am not sure how you want me to respond to this. If that is what you believe, I wish you luck. I am not here to change your mind. However, I will tell you one thing. Elliot Wave is useless in predicting both the timing and price targets, but I assure you that the market is not going to 1000. Not even close.