A couple of stocks I like to follow are GS and JPM to
forecast pivot turning points in the US stock markets, particularly the SPX.
You can see how JPM and GS appear to be tracking the SPX
well and that it’s my belief that if we can track potential Elliott Wave counts
in both Goldman and JPM,we can find an edge to the US markets and use that
information to forecast major peaks and turns in the US stock markets.
If you overlay SPX, GS and JPM with each other, there is
a clear bonding between the 3 markets.
I want to first show an example to the benefits of counting
stocks like GS, because they are big stocks that are traded by big
institutions, it’s important to watch stocks like this as they act very
familiar to the major markets. If those stocks have patterns that suggest a
reversal then in my opinion we can use that information to time major turning
points in the major indexes.
Back in March this year I was tracking a 5 wave advance for
Goldman and it looked completed, which got me on high alert for a potential
reversal in the US markets, I have seen it too many times that stocks like
Goldman and JP Morgan show completed patterns and then the major markets reverse.
With a 5 wave advance, Elliott Wave suggests once a 5 wave
move is completed then a correction is due.
If we overlay GS with the SPX, you can clearly see how
knowing what was going on in Goldman gave us a distinct advantage with what was
about to happen, or I should say what I thought was going to happen with the US
stock markets.
Using Goldman I was actually able to predict that a turning
point in the SPX was days away.
The high for Goldman was on 27th March 2012, the
high for the SPX was on 2nd April. As Goldman and other stocks like JPM started
to reverse and move lower it was only a matter of time before the rest of the
market would follow. Clearly you can see how the markets reacted.
Which brings me to the point of the article and by using
Goldman & JP Morgan, I think a major turning point is at hand in the US markets and
one that could be upsetting the bulls that are too complacent.
If we look at Goldman’s Elliott Wave count, from the June
lows there appears to be a 5 wave advance, and currently I suspect its now in
the 5th wave, so a top in Goldman should be seen shortly which
as history suggests the SPX will not be far behind if
Goldman rolls over.
My best guess at this stage is sometime in January, that Goldman
will complete its advance in a 5 wave impulse move. With Goldman
so close to the March 2012 highs I suspect this will push towards $135 and end
its advance.
It appears to need a few more gyrations to complete its
advance from the June 2012 lows. So sometime in January this could be vital
clue to use to predict a reversal in the US stock markets, and the way GS and
JPM appear to be setting up, early in 2013 suggests a turning point for the US
markets.
JP Morgan (JPM)
I have been tracking a similar wave count in JP Morgan and
that from the June 2012 lows, this as well looks like a 5 wave advance in play and a
small dip then a push higher suggests a completion to the advance and another
clue that I will be watching to suggest a major turn in the SPX.
With or without a new high in the SPX above the September
2012 highs, (although I have daily Elliott Wave pattern that ideally sees
1480-1500SPX) once the patterns on JPM and GS complete themselves. I am confident
they will be signally a strong reversal in US stocks, just like Goldman
did back in March 2012.
They say they never ring the bell at the top, but who needs
a bell when we have JPM and GS.
Until next time
