All markets are driven by long term investor psychology cycles. When the cycle is positive a bull market unfolds, when negative a bear market. The Objective Elliott Wave (OEW) technique not only determines if a market is bullish or bearish, it also determines how far a market has progressed in its current cycle.
OEW is not textbook Elliott Wave. It is a proprietary technique that defines every significant wave within bull and bear markets quantitatively. With this approach one could historically analyze any market to define its exact wave structure, and determine what the past is projecting about the future. We first did this analysis in the early 1980’s on the entire history of the US stock market. When waves are determined quantitatively they never change, past of present.
At that time our analysis led us to believe that a stock market crash was likely in late-1987 to early-1988. Then another bull market would be underway. When the stock market did crash in October 1987, and a new bull market began in late-2007, we knew we had uncovered some of the missing tenets of the Elliott Wave Theory.
Over the years OEW analysis has led to some important projections in a variety of markets. In the US stock market: the correction in 1990, the correction in 1998, the 2000-2002 bear market, the ensuing 2002-2007 bull market, the 2007-2009 bear market, then the recent bull market as well. After a decade long bull market in many of the commodities: we pinpointed the bull market high in Crude at $148 in 2008, and identified a new bear market in Gold not too far from its 2011 $1900 high. In currencies: we tracked the bear market in the USD until 2011, then identified a new bull market in the USD and bear markets in most other currencies. In real estate: we identified the bull market top in 2005, and then the bear market bottom in 2011.
Bull and bear markets usually last for years. Uptrends and downtrends last for months, and are often mistaken for changes in long term trends. OEW analysis not only confirms when changes in long term trends are occurring, but often projects them ahead of time allowing one to follow the bull or bear market as its unfolds. If you are interested in learning how to do this type of analysis yourself, and joining our private international OEW group, please contact us at firstname.lastname@example.org for details. Best to your trading/investing.
“The possession of knowledge, unless accompanied by the manifestation and expression in sharing is a vain and foolish thing. The Law of Use is universal, and he who violates it suffers by reason of his conflict with natural forces.”