Eliot, Frost, S discussed on Stansberry Investor Hour


I wonder if, you know, would we be would we be giving away too much for free? Because I know you have paying subscribers who pay for this from you. To run down the big indexes and asset classes? No, not at all. Okay, so when I start with the S&P 500 and so you ask me, you know, what's the basic version of techno analysis for somebody to get started? Well, I'm going to skip all the way ahead to call it ten years of doing technical analysis or 15 years and then get into some more advanced stuff. And I actually have something else for you. A fourth book that people should read is Eliot wave principle by frost and preacher. This is going to give you insight into price. And that's it. Understanding how price works. I'll understanding all those little wiggles. Now, with that out of the way, I'll answer your questions. So the S&P 500, we go back to some basic stuff. It's still within enough trend. Long term up for instance, March 2020, really simple stuff. And I talked about this for really the last year and a half or so. Until that ends, you really just it's difficult to go the other way against it. Even though you want to be contrarian sometimes it's difficult to do that. So my thinking for the first call it month or two of 2022 is that we're continuing to see that uptrend occur and then in February March, I'm expecting a incredible wave of volatility based upon that book I just mentioned, what Elliot wave is teaching us along with an extreme, extremely advanced technical methods that I learned from someone called WD gan who is dead. But he was a famous trader back in the 1900 early 1900s. And he focused on time and when and that is, again, much more advanced. But so these two combinations of and you can look at you major index, it doesn't matter. You can look at S&P 500 the Dow, the transports, whatever you want to look at. They're all kind of signaling this look or running into a high and then the time factor coming into February March looks to be a little a little wobbly in terms of how the bull market is going to react. Okay, I see all the equity indexes are signaling that same phenomenon. And so here's the other thing. So there's a saying in and I know you've heard of it. Tops are a process, bottoms are in a bit. Meaning, you know, you think about March 2020. That was a huge just V shape, boom, one day, we're taking off and we're never looking back. And tops are a little bit different. So what I'm expecting, heading into February and March is, you know, we'll see maybe the Russell 2000 doesn't make a new high while tech does or the transports don't make a new high and the industrials do. I don't know exactly which one of those is going to happen, but that's going to start the process to this volatility that I think we're going to see. Okay, so like right now, aren't we, let's say, do I have this wrong like S&P 500 and Dow have just made new highs, but Russell and nasty I have and have they? That's correct. And so a lot of people are looking at interest rates as the issue, but this just really hasn't been the case. When you look at it from a long-term perspective, because yeah, we'll see spike up an interest rates and all of a sudden that is reflective of tech. I mean, I tell my subscribers all the time..

Coming up next