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Chart correction should read ABC targets, not W.A target.
Earl
----- Original Message -----
From: "Earl Adamy" <eadamy@xxxxxxxxxx>
To: "LwSide1" <lwside1@xxxxxxxxxxxxxxx>; "Realtraders"
<realtraders@xxxxxxxxxxxxxxx>
Sent: Saturday, December 08, 2001 9:46 AM
Subject: Re: [lwside1] Case for the bulls? (updated)
> Attached is updated weekly chart from my October 27 post. The expected
> secondary decline has yet to materialize, however price is well on way to
> 38-50% retracement targets. Ordinarily one would expect the correction of
a
> 5 wave decline to take the form of an ABC retracing 38-50% in price and
38%
> (minimum) in time. The incredible steepness of this rally leads me to
> believe that something else may be afoot, however until proven otherwise,
we
> should still expect to see a B wave retracement followed by a C wave
rally.
> The bear market should then be expected to resume.
>
> Earl
>
> ----- Original Message -----
> From: "Earl Adamy" <eadamy@xxxxxxxxxx>
> To: "Realtraders" <realtraders@xxxxxxxxxxxxxxx>; "LwSide1"
> <lwside1@xxxxxxxxxxxxxxx>
> Sent: Saturday, October 27, 2001 11:11 AM
> Subject: [lwside1] Case for the bulls?
>
>
> > I believe that the long term bear case remains in excellent shape. That
> > said, I am beginning to see some signs that give me pause in making
> shorter
> > term bearish bets. This does not mean that the short term bullish case
is
> > strong, but rather the short term bearish case appears to have weakened
> > leaving open the possibility that the next months will see a secondary
low
> > and a higher high. A review of charts at previous panic lows suggests
that
> > the 21Sep low is likely to be retested within 35+- days or not later
than
> > 09Nov.
> >
> > Now for a bit of fun!
> >
> > The attached weekly SP500 continuous unadjusted futures chart suggests
an
> > intriguing scenario. Technical work performed on the weekly chart months
> > prior to September 11 suggested a price target of 1041 (call it
1000-1050)
> > for completion of the initial 5 wave decline. One would expect this to
be
> > followed by a rally ... quite likely an ABC correction of 38%-50%
lasting
> a
> > minimum of 38% of the time in decline. The events of September 11 set
off
> a
> > panic decline to 939 which overshot the target quite a bit.
> >
> > While one typically watches retracements from the real low (left hand
> > retracement column) it may be worth watching retracements from the
typical
> > (projected 1041) low (right hand column). When retracements are measured
> > from the typical low, the rally is seen to be much less powerful than
when
> > measured from the real low and there is far more room for an upside
> > retracement which does not negate the primary bear trend.
> >
> > Just a bit of out-of-the-box thinking which might just go a bit toward
> > explaining market behavior for the past several weeks. Thoughts?
> >
> > Earl
> >
> > To Post, send to: lwside1@xxxxxxxxxxx
> > To Unsubscribe, send a blank message to: lwside1-unsubscribe@xxxxxxxxxxx
> >
> > Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
> >
> >
>
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