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“.

Why Winners Keep Winning (And Losers Keep Losing)

If “buy-and-hold” and the notion that you can’t beat the market have left you short of your personal and retirement goals, then you’re going to want to hear the truth about passive and active investing.

Chances are if you’re more than 25 years old, you think it’s impossible to “beat the market!” But you CAN beat the market… you just need to use the right strategy! Find out more in our new report from Adam O’Dell,, Why Winners Keep Winning (And Losers Keep Losing)!

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.