Its just a bear flag. Volume has been tapering and the Daily stochs are HUGELY overbought. The MCO is also peaking out. In fact this wave 4 doesn't look much different than the other wave 4's we have had right before they turned. The target for the bear flag formation is sub 600.Many EWers have been flipping to Primary 2, Kenny being at the vanguard was first. All of this due to the fact that the Nasdaq Composite Elliott wave count has violated the wave 1 rule (wave 4 must not exceed wave 1 unless its an ending diagonal). After some debate with a colleague, the final resolution we came to is "why does the Nasdaq have to be on the same count?"
Unlike most world exchanges which have a variety a different industries, the Naz is heavily weighted in certain areas and is completely missing certain sectors. I don't have a break down of the full composite, but the QQQQ's represent the top 100 companies in the composite index and you can assume these have the most weighting. The QQQQ's have a break down as follows:
| SECTOR WEIGHTINGS (%) |
| Sector | QQQQ | ||
| Software | 16.31 | ||
| Industrial Materials | 2.15 | ||
| Energy | 0 | ||
| Utilities | 0 | ||
| Hardware | 34.05 | ||
| Media | 5.95 | ||
| Telecommunication | 0.68 | ||
| Healthcare | 20.27 | ||
| Consumer Services | 9.69 | ||
| Business Services | 10.6 | ||
| Financial Services | 0 | ||
| Consumer Goods | 0.29 |
We see energy, financial services and utilities are not represented at all...and these sectors have had a huge influence on their respective indices in recent times. So its not surprising that the Nasdaq might have its own count.
*Above table break down taken from Yahoo's Finance section.
1 comments:
sweet...i got a mention as colleague. :)
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