Beware the "C of C Wave" Avalanche

“What the hell are you doing!?” Someone yelled a few minutes after I went short the euro. Luckily, he wasn’t yelling at me. He was yelling at the guy behind me who’d just gone long the euro.

“Why are you fading a C of C wave!” He continued on his tirade. “That’s like walking up a mountain during an avalanche! You’re gonna get buried.”

This “C of C wave” is a component of Elliott Wave Theory. It can be the most vicious phase of a corrective selloff.

I tell you this today… because we’re now in this very phase.

See larger image

Looking at the chart above, the red bars show the first major wave down – the “A wave.” This impulsive wave has five sub-waves (labeled with lowercase a – e).

The “B wave” is in yellow. This is when the selloff takes a breather and prices go back up a bit. This wave is corrective and only has three sub-waves (a – c).

And then the “C wave” is in pink. This impulsive wave also has five sub-waves (a – e). Of these, the “C of C wave” is the one to watch out for.

If this pattern plays out in its textbook form, the S&P 500 is headed to 1,230 next. Then, after a small upward bounce, down to 1,200 or lower.

Stock buyer beware!

If you haven’t done so already read the Survive & Prosper issue on “Pensioners, Welcome to Ben Bernanke House of Pain“.

Harry Dent’s Most Disturbing Prediction in Years

Harry Dent, one of the most respected economists in the industry, has uncovered a disturbing market event that could soon devastate millions of investors. In short, he has undeniable proof that one of the market’s safest and most popular investments is about to get slaughtered… and it will have dire consequences for those who don’t prepare right away.

For full details on the event Harry’s dubbed as the “Safe-Asset Slaughter”… and to ensure you escape the coming carnage, I urge you to watch this special presentation.

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Categories: Economy

About Author

Adam O'Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.