Nasdaq - approaching a good target for a lasting top in wave ( 3 ) uo
Nasdaq Composite $COMPX includes all of the common stocks listed on the Nasdaq exchange, the Nasdaq 100 only includes the stocks of the 100 largest non-financial companies listed there. The 100 companies in the Nasdaq 100 make up more than 90% of the weight of the Nasdaq Composite Index.
My Long-Term count remains unchanged.
I think we have been watching completion of the macro wave ( 3 ) up, specifically subwave C of wave 5 of ( C ) of ( 3 ) up.
Nasdaq Composite is approaching a very strong confluence of fibs:
– 223.6% ext of subwave (A) of wave ( 5 ) up = 13,054, and
– 176.4% ext of subwave A of wave 5 up = 13,172.
Completion of the large wave ( 3 ) up would open the door for bears to start a large corrective wave ( 4 ) down.
COMPX - Nasdaq Composited - Weekly chart updated on 12-14-2020
Subwave C of wave 5 of (C) of ( 3 ) should be composed of five waves of a lower degree.
On the 120 min chart you can see that we can count COMPX being in the final push higher, specifically subwave (c) of wave ( v ) up. The simplest scenario is that Nasdaq keeps pushing higher to that target with shallow pullbacks on the way.
COMPX - Nasdaq Composited - 120 min chart updated pre-market on 12-14-2020
We can see a slightly different count where bulls they have more time to make the final top.
I like that count more because:
– wave ( iv ) down here has a clean (a)-(b)-(c) structure,
– subwave (b) down of wave ( v ) up has an a-b-c structure even though a tricky one shaped as Running of Expanding Flat,
– that count argues for decline in subwave c of ( b ) down into the year end which fits my timing analysis.
My general expectation is:
– weakness into the end of December,
– bullish January 2021,
– flat distribution at the top in February 2021,
– strong decline – March – June 2021.
COMPX - Nasdaq Composited - 120 min chart updated pre-market on 12-14-2020
Previous Updates:
Important Disclaimer
CastAway Trader LLC, the publisher of this web-site and videos is not registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. Users of the website www.castawaytrader.com and viewers of the videos are advised that all information presented on the website is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user’s particular investment needs or objectives.
Trading stocks, options, or futures carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience. CastAway Trader LLC provides general overview of trading methods that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. All trading setups and/or trades presented in the web site and/or trading chat room by CastAway Trader an/or by other members of the chat should be considered hypothetical for educational purposes only and should not be expected to be replicated in a live trading account.
An investor could potentially lose all or more than the initial investment. You should not speculate with capital that you cannot afford to lose. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style.
You should be aware of all the risks associated with trading. You should seek advice from an independent financial advisor.
Any information posted on this web site is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All users of the website must determine for themselves what specific investments to make or not make and are urged to consult with their own independent financial advisors with respect to any investment decision. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. All opinions, analyses and information posted on the website are based on sources believed to be reliable and written in good faith, but should be independently verified, and no representation or warranty of any kind, express or implied, is made, including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, CastAwayTrader LLC and its officers and employees undertake no responsibility to notify such opinions, analyses or information or to keep such opinions, analyses or information current. Also be aware that the owners, officers and employees of the web site www.castawaytrader.com may have long or short positions in securities that may be discussed on the website, Premium Trading Chat room and/or in the videos posted by CastAway Trader LLC.
Past results are not indicative of future profits.