Stock Market Update 1-18-2010

Sir Pipsalot

Former FPA Special Consultant
My signal may come out a bit late tonight, so I wanted to get this special update out there ahead of time:

I am recommending shorts on stocks on all timeframes. A rare but very accurate confluence of Elliott Wave patterns are calling for the major stock market top here, or VERY close by. I don't see the turn quite fully confirmed yet (we need 1127 to break for starters), but the evidence has piled up enough to think about trying to get in a bit early. The ESH0 contract is now at 1135-1138. Scalpers can try to get away with a 7 point SL while swing traders should give it 15-20 points of room. From a position trading standpoint, I'd mentally budget for 50 points of room but I wouldn't worry about a hard stop and we'd probably get out before it goes nearly that far. We very well could be setting the highs for the year with a very steep selloff brewing shortly.