Weekly Report - For the week of September 24, 2018 Page 1

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Hubert Banks
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Page 1 Market Overview Leading indicators figures for August were released on Friday. And, the August number of.4% seemed pretty much in line with analyst expectations.

1 Page 1 Market Overview Leading indicators figures for August were released on Friday. And, the August number of.4% seemed pretty much in line with analyst expectations. In the week ahead, traders may want to remember that final University of Michigan Consumer Sentiment figures for September are due on the 28th. QQQ Daily Kicking off this week's analysis with the QQQ daily chart above, we can see that this market started the trading week lower. And, as the trading day unfolded, the market continued lower and closed near the lows for the day. When trading resumed on Tuesday, the market seemed to change its overall tone. While the market opened higher and traded higher during the trading day, it managed to recoup some of the losses seen the prior day. As a result, the market finished around the middle of the day's

2 range. Weekly Report - For the week of September 24, 2018 Page 2 On Wednesday, the market made a dip into the red during the session. However, it was able to recover and finish only slightly lower on the day. Thursday's trading session began with a gap to higher highs on the open. And, even though it made a brief attempt to fill this gap, it seemed unable to do so. Instead, the market finished higher and in the upper portion of the day's range. On the final day of trading for the week, the market began the session with a higher open. However, it seemed unable to continue much higher. As a result, the market lost ground during the session and finished in the bottom portion of the day's range. QQQ 240 Minute Drilling down to the 240 minute time interval for the QQQ, we can see that IntrepidTrader has identified the current wave as wave five on this timeframe. Also, we can see that the fifth wave trades to a price area just below the red Fibonacci target box for this wave.

3 Page 3 When some new Elliott wave traders find themselves in a wave four, they may begin to wonder how long the current wave could last. After all, it's not uncommon for the market to spend a considerable amount of time in a fourth wave. One of the concepts in Elliott wave theory that applies to corrective waves is called alternation. Simply put, alternation refers to the comparison between corrective waves within an impulsive wave sequence. So, if the second wave is long and takes a bit of time to develop, the fourth wave is expected to be relatively short both regarding time and size of the correction. This type of information can be beneficial to Elliott wave traders. Not only does it help a trader anticipate how a correction will unfold, but it also helps him manage his emotions while trading. And, this can be a critical advantage that Elliott wave traders have over those traders who do not use the Elliott wave in their trading. The fourth wave can be an emotional roller coaster for traders. In fact, it's not uncommon for a trader to experience more frustration during the fourth wave as compared to other waves in the impulsive wave sequence. With this in mind, knowing and understanding how the role of alternation functions within the context of Elliott wave theory can go a long way to assist a trader in understanding what is currently happening within the market that he is trying to trade. In the week ahead, traders may want to watch the 240 minute time interval for the QQQ. If this market continues to advance, the next objective for the major fifth wave shown in the chart above would be the red Fibonacci target box for wave five. However, should this market decide to sustain a correction greater than the major fourth wave (shown in red) within this bullish five wave sequence, this could be an early indication that the wave count shown in the chart above could be over.

Page 4 SPY Daily Continuing onto the SPY daily chart above, we can see that this market seemed to give back some of the gains seen the prior week on Monday.

4 Page 4 SPY Daily Continuing onto the SPY daily chart above, we can see that this market seemed to give back some of the gains seen the prior week on Monday. In doing so, it filled the gap which was created the prior week. All in all, the market finished lower and in the bottom portion of the day's range. On Tuesday, the market began the session with a higher open. And, bulls took control of the markets and pushed prices higher. As a result, the market finished higher and in the upper portion of the day's range. Wednesday's trading session began with a slightly higher open. And, even though the market continued higher during the trading day, it backed away from these highs to finish only slightly higher on the day. Thursday's trading session began with a gap to higher highs on the open. And, after filling the gap, the market continued higher to finish in the upper portion of the day's range. On Friday, the market began the session with a lower open. And, unable to continue much

5 Page 5 higher, the market lost ground during the session. All in all, the market finished lower and near the lows for the day. SPY 45 Minute Drilling down to the 45 minute time interval for the SPY, we can see that IntrepidTrader has identified the current wave as wave five on this timeframe. Also, we can see that the fifth wave trades to the red Fibonacci target box for this wave. There are some habits a trader develops over years of trading and analysis. And, in my opinion, the practice of moving from one-time frame to another is an excellent habit for some traders to develop. When I first started trading, I thought that the main reason that traders moved between higher and lower time frames was to help them gain a higher level of precision in their entry and exit points. To some degree, this can be true. However, there is a trap that some traders can fall into when trying to adopt this mindset. And, this trap is sometimes referred to as the paralysis of analysis. To put it another way, a trader can get so wrapped up in the details of analysis that they

6 fail to make a trading decision. Weekly Report - For the week of September 24, 2018 Page 6 However, there is another reason to incorporate multiple time frames into one's analysis. This has to do with contextualizing the information displayed on a price chart. For example, a trader may be observing the fifth wave on an hourly chart. But, as Elliott wave traders we know that impulsive waves like a fifth wave can be comprised of five waves. So, if a trader moves to a lower time frame when he is in a fifth wave, he can more easily dissect the finer details that make up the current move that he is in. While this takes a bit of time to get used to, it can go a long way in managing a trader's expectation and emotions while trading. There is another benefit that a trader can receive by using multiple time frames. This can be observed during major market turns. When markets turn, the market turn can sometimes be observed on lower time frames before they are seen on higher time frames. In this way, the trader can observe the effect of the market turn as cascading from the lower time frames to the higher time frames. In the week ahead, traders may want to watch the 45 minute time interval for the SPY. If this market continues to advance and trades beyond the top of the red Fibonacci target box for the major fifth wave shown in the chart above, it is possible that a new bullish wave count could emerge. However, should this market decide to sustain a correction greater than the major fourth wave (shown in red) within this bullish five wave sequence, this could be an early indication that the wave count shown the chart above could be over. Good Trading! Sam Perdue

Weekly Report - For the week of January 29, 2018 Page 1

Weekly Report - For the week of January 29, 2018 Page 1 Page 1 Market Overview Advanced GDP figures for the fourth quarter were released on Friday. And, the 2.6% figure reported was down from the previously reported 3.2%. The number reported for the fourth