Why the 2020 stock market crash really happened

TL;DR

A comprehensive analysis of the market trends using Elliot Wave Theory, indicating a downward trend.

Transcript

hello it's John Burford with chart of the week for Monday the 2nd of March and yes it's March already and we've already had two months yes two months of a pretty exciting action in the markets have we not meant many last year we're going to calling this decade the Roaring Twenties well they may be right but not in the not in the sense they expected... Read More

Key Insights

• 🔇 Elliot Wave Theory is an important tool in the speaker's market analysis and provides support and resistance levels.
• 👋 Wave 1 and wave 2 play crucial roles in the speaker's tramline system.
• 🔈 The speaker expects a downward trend in the market, with potential targets at the Fibonacci 62% retrace level and possibly lower.

Questions & Answers

Q: How does Elliot Wave Theory work in the speaker's tramline system?

The speaker explains that Elliot Wave Theory helps him identify waves and retraces, such as wave 1 and wave 2, which provide important support and resistance levels.

Q: What is the criterion for a wave to be considered a second wave?

According to the speaker, a second wave should not exceed the extent of the previous wave. This criterion helps confirm the wave count and direction of the market.

Q: What is the significance of the Fibonacci 62% retrace?

The speaker mentions that the Fibonacci 62% retrace is often a strong support area for a market, indicating a potential bounce or reversal in the trend.

Q: How does the speaker compare the UK and US stock markets?

The speaker notes that the US market (S&P) had a stronger rally compared to the UK market (FTSE). He expects the S&P to decline faster than the FTSE in the future due to this difference.

Summary & Key Takeaways

• The speaker discusses his use of Elliot Wave Theory as the foundation of his tramline system.

• He explains how wave 1 is followed by a relief rally in wave 2, and emphasizes that the second wave should not exceed the previous wave.

• The analysis compares the stock market trends in the UK (FTSE) and the US (S&P), suggesting a faster decline in the S&P.