ANOTHER BUY SIGNAL – ONE – 08/29/11 © ™

WAVE COUNTS SIMPLIFIED

  • There are 3 peaks (or valleys) to a completed wave count. A significant reversal takes place after a completed wave count of 3 peaks (or valleys).   Often times it’s as simple as counting 3 bumps on a chart . . . Other times, not so easy.
  • Each step must stay confined to a channel.  Laying a pen or pencil on the chart will help you visualize the channel.
  • The 3 steps that make up a completed wave count will also be confined to a relatively larger channel.
  • When the market breaks a channel (regardless of size), that step (or wave) has been terminated and the market has begun a counter-trend move.
  • If you believe that wave counting is voodoo, please read along for awhile and reserve judgment until later.
  • Reading the glossary helps a great deal in the understanding of this blog.
  • Glossary Link

************************************************************************************

  • Short Term
  • Uptrend
  • August 9, 2011 To Present
  • Step 2 Up Is Underway
  • Last Action Status – Bought Again On 8/29/11

I bought again last night and have re-issued another buy signal.

We have bettered the Thursday highs and we are in step 2 up counting since August 9th.  See chart below for more details on the wave count.  If we can’t make it through the highs made on August 17th, it would not be good but since it’s step 2, the odds are good that we will make it.  From there the count expands and goes higher.  I would expect to pick up more volume when we better the August 17th highs.

I think you’ll find the following remarks from the new head of the IMF of interest.

Remarks at Jackson Hole, By Christine Lagarde, Managing Director, International Monetary Fund

08-29-11 DJ INDUSTRIALS 5 MINUTE BARS

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