Thursday, January 7, 2016

Long term Elliott Wave structure of the Taiwanese stock market

Here is an extract from our Elliott Wave Technician December 2015 Investment Newsletter. We cover all major markets in Asia, which looks interesting in a long term perspective as they are ending larger bear markets.

As a proxy for Asia we publish our Elliott Wave Analysis of the Taiwanese stock market which reveals a triangle structure spanning 20 years.



























Technical analysis of Taiwan stock market.  Source: Elliott Wave Technician

A complete large contracting triangle which we have labeled as Elliott Wave 'IV'.  

The Taiwanese stock market is in the beginning of a large Elliott Wave 'V'. We have labeled the rally that started in 2008 as Elliott Wave '1' of 'V'. It is not clear if the correction in wave ‘2’ is complete, so further downside from current levels is possible. 

However, the next big move should be a continued long term rise in wave '3' of 'V'.

Geir Solem

Elliott Wave Technician
Copyright (C) all rights reserved

Monday, November 30, 2015

The stock market is expensive compared to corporate bonds

The value of corporate equity compared to corporate bonds is very overvalued.



















Source Federal Reserve Economic Database

The data are quarterly, and include the 2nd quarter of 2015.

Our conclusion is that stock prices and valuations are very expensive rigth now.

Geir Solem

Elliott Wave Technician
Copyright (C) all rights reserved

Monday, October 12, 2015

Milton Friedman - Illegal Immigration - PT 2

We present part 2 of Economist Milton Friedman's view on illegal immigration.



Source LibertyPen

Geir Solem

Elliott Wave Technician
Copyright (C) all rights reserved

Tuesday, October 6, 2015

Milton Friedman - Illegal Immigration - PT 1

See Economist Milton Friedman's view on illegal immigration.



Source LibertyPen

Geir Solem

Elliott Wave Technician
Copyright (C) all rights reserved

Monday, August 24, 2015

Dr. Copper Say Stock Market Collapse Coming

Copper often leads other markets. That's why the red metal is called Dr. Copper.

Copper continue to follow our forecast to a tee. Here is an updated weekly chart of Copper with the larger Elliott Wave structure:





































Source Elliott Wave Technician

As you can see from the long term Elliott Wave structure, copper topped in 2011, and since then, a large decline has been in progress with a target of USD 1 - USD 1.25 area on the chart. We have labeled the end of the wave down as (a) marked with blue colour on the chart.

If Dr. Copper is rigth a large stock market crash will follow the price collapse of Copper.

Geir Solem

Elliott Wave Technician
Copyright (C) all rights reserved