I have to admit, most, if not all, Elliott Wavers were shot in the head this year with the rising market. Personally, I was caught off guard by the strong upmove too. For any EW and macro speculator, the upmove in 2023 don't make sense. It is irrational. In fact, it could be irrational exuberance again. But as time passes, the truth starts to unfold: the market capitalisation weighted indices were really being upheld by a few names. The rest were really flat or down. What this means is that the market breadth is not there for this rally. And this is something that is peculiar to this market because of the high market cap of a handful of companies. I don't think the original creator of the index thought that this could happen, but it did.
Nevertheless, I would admit that this is really another bold attempt to call a market top (or really, a correction top).
Disregarding EW technique which is either hated or loved, just look at the risk-reward for this trade. It doesn't make sense to go long, if this is the only rationale a trader needs to decide which side to trade on.
Good luck!
Nevertheless, I would admit that this is really another bold attempt to call a market top (or really, a correction top).
Disregarding EW technique which is either hated or loved, just look at the risk-reward for this trade. It doesn't make sense to go long, if this is the only rationale a trader needs to decide which side to trade on.
Good luck!
