Thursday Aug 8, 2024
Elliott Wave theory holds that people as a group act in a five wave model, three step one way and two the other. This applies to the main trend of a movement.
Then a correction occurs which takes the form of an A BC. Here is an example of SLV the ETF of silver bullion.
This graph illustrates both Elliott Wave and the seasonality of markets.
Markets tend to rise from November to May, ie after May go away. The high was in May and SLV has corrected all summer long.
SLV exhibits a 50% rise freom January to May. That occurred in five waves upt three up and two down.
Wave two was sideways and wave four more to the downside. This is alternation.
All summer SLV has corrected. I label the A B C pattern. This tries one's patience but it is the NATURE OF HUMAN BEHAVIOR WHICH DICTATES THE NATURE
OF MARKETS.
Notice the momentum indicators RSI at top and PMO at bottom topped in late May.Now that we are in early August, they are bottoming. It appears SLV has finally completed its ABC
correction. IF htre move from January to May was Wave One, the summer Wave Two correction. a much larger Wave Three or five lies ahead.
HEre is an hourly graph of SLV since May.
Here the A B C down up down pattern is more obvious. I will monitor this idea of a final C Wave low. If so, long positions should be added
via SLV and Sprott gold and silver ETFs. Sprott GOld PHS, Silver PSLV.
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