January 2019 – The Bears Aren't Hibernating

Happy New Years Trendy Stock Chart members! Hopefully you are sitting on available cash like I am to take advantage of this bear market when the time is right. That time is not close yet though.

Let’s make a Trendy Stock Charts resolution together – please have patience during this bear market. Just when prices seem really good, they may get even better (meaning go even lower). I will be posting a chart later today from Elliott Wave International. Their chart indicates that we are not only correcting the uptrend from 2009 through current and even more.

You see, Elliott Wave International shows the uptrend from 2009 through current as Wave 5 of an even larger Bullish Impulse wave pattern. The financial crisis from 2007 – 2009 was Wave 4 of that pattern. I don’t have enough chart history to go back that far and analyze the potential pattern since Think or Swim limits my chart viewing history to 20 years.

Folks, I cannot stress enough that I think we are entering a horrible bear market. That is why I moved to cash back in November 2018. And after seeing the chart from Elliott Wave International yesterday afternoon, I am even more fearful of how low this could be going. If you thought any of this pullback was painful so far, I think it is going to get much, much worse.