Surfing the Profit Waves in US Stocks

We timed Thursday's INTERIM BOTTOM with pretty good precision, and now it's time to look ahead in anticipation of the next likely move. In chart 1, the $DJIA (Dow Jones Industrial Average) is shown to have completed an EWT 5-wave move that started on January 20th. Consequently, a pullback to the bottom area of wave 4 is to be expected per the EWT guidelines. 


Chart 1. $DJIA wave analysis.

As for the S&P 500, I believe the intraday low established on February 11th was a bit illusive. Frankly, I've learned over the years not to put too much faith in EWT when it comes to weighted averages encompassing 500 constituents. Still, I always try my best to put forth an objective analysis. Charts 2, 3, and 4 below depict my wave interpretations for the $SPX (S&P 500), $SPXEW (S&P 500 Equal-Weighted), and ES Z6 (S&P December futures contract), respectively.  


Chart 2. $SPX wave analysis.


Chart 3. $SPXEW wave analysis.


Chart 4. ES Z6 wave analysis.

Finally, the $SOX (Philly Semiconductor Index).  As shown in chart 5, its wave progression couldn't be any clearer. A pullback to the ~761 area in the coming days/weeks should set the stage for a breathtaking bull run aiming for ~900+. In fact, chart 6 is affording me the benefit of clarity for years to come, and I couldn't be more grateful. 


Chart 5. $SOX wave analysis (daily time frame).


Chart 6. $SOX extended wave analysis (weekly time frame).


Trade Smart,

Peter Ghostine (@peterghostine)


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