Market Update Email 1-11-2009

To: A few friends
Subject: elliott wave update - time to phase in shorts.

Vindication!

For months Ive been talking about that November Move down and how it was bugging the $#%^ out of me. This link is the latest Elliott wave international count (Prechter www.elliottwave.com) which is considered to be the premier Wave analysis site and they have recently revised their count to correspond with pretty much what I have had. Not that I am a pro, but elliott wave has been working in this bear market. 5 down 3 up! Right now we are in wave 4 of a 5 wave move down. Waves 1,3, & 5 are down moves with waves 2 & 4 corrective. Expect a big move down at the conclusion of this triangle...maybe inauguration time (remember the 10% 2 day decline after election).

Bottom line is the price high may be in. If this count plays out, then we will get one more good chance to load up on the shorts, but I see no problem phasing in right now. A reevaluation needs to happen if price makes a new high above $9500 on the Dow.

http://globaleconomicanalysis.blogspot.com/2009/01/s-500-crash-count-wave-four-triangle.html

Good Luck.
Chad