Good Morning Everyone: Today is a good example of how surprising a market can be in the face of overwhelming doubt. Readers of my 'Financial Intelligence' Email report will know that I have been looking for the potential completion of a 'C' wave of an ABC correction from the July 20 market high. So far the market is putting in a very good effort to leave this corrective wave behind and resume its new uptrend as the whole structure begins to more and more resemble a very large ABC. It is also important to note, that if this does in fact turn out to be the case, the next uptrend could turn out to be surprisingly strong, especially in view of the fact, that we would be back to the market having to climb a wall of worry syndrome, which are ideal conditions for the furtherence of a bull market in anything. It is also important to note, that the lack of follow through to the downside in Asian markets could indicate that a major market low of very credible importance is being established there.
'C' Waves are always very scary and this one is no exception. Many people thought '87 was the end of something. In fact, it represented a new beginning. The thing that fooled everyone, including some of the best Elliott Wave Analysts on the planet, was that they failed to recognize that this was the pen-ultimate ABC or 2 wave of the great wave one of the eighties. The ultimate 1-2 was the Gulf War correction and the third wave began January 16, 1991.
If my three wave ABC corrective theory does in fact turn out to be the case, the implications would be for a surprising and very powerful rally to unfold, something that few are now expecting or at least were not expecting early this morning.
The reluctance of the market to move much lower and the sharp, somewhat unexpected rally thus far, is testament to the growing likelyhood that the ABC correction is over. More often than not, these major high drama media saturated type event days, such as the one we had yesterday, invariably signal some sort of turning point in the market and can be a very useful market indicator. The winningest strategy is to be able to think different from the general masses, as strong holders have been able to do here with FNTN.
As a general rule of thumb, stocks which outperform or actually rise in down markets like this, have a very robust tendency to outperform in a major way as the recovery unfolds. Since FNTN was particularly strong over the past few days, I can only conclude that this must bode very well for FNTN's future. If you would like to receive my 'FI' report please send me a PM with your Email addrress.
Rgds
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