The Chart of US's Stocks

Harmless Little Bear






There are many US stocks appeared to have started the major bear market rebound (major wave B) ahead of the Dow. I don't think Dow has finish its bear journey yet.

AIG's peak was set in October 2000 at US$103.75 (Dow was about 10,500). It dropped to about US$50 in February 2003 for its wave A (Dow = 8,000), rebounded to US$72 in May 2007 to form wave B (Dow = 13,500 and peaked 5 months later at 14,164). Its low two weeks ago at 33 cents is very likely its wave C. (I should have used 1-2-3 instead of A-B-C because the 33 cents location is actually the Major Wave A for AIG). From 33 cents it rebounded to US$2.00 for a 500% gain.

Since the 33 cents low, AIG has formed its sub-wave 1 and has started its sub-wave 2. It closed last Thurseday at US$1.10.

Citi Groups pattern is exactly same as AIG with its peak at US$77.75 and its low at 97 cents set two weeks ago to complete its higher degree Major A Wave. Similar to AIG it has started its Major B rebound ahead of Dow.

Citi has also completed its sub-wave 1 and is currently forming its sub-wave 2

BAC has its peak in November 2006, much later than AIG and Citi but the form is the same with its low at US$3.00 set two weeks ago.

Similarly BAC is currently in sub-wave 2.

Las Vegas sands has a chart that is more in line with Dow. Same as Dow it has its peak in October 2007 at US$ 145.57. It touched a low of US$ 1.38 two weeks ago for a 99% drop. In the process it has formed 7 sub-waves as shown. (7 wave in Elliott can be treated as equavalent to wave 1-2-3 with wave 3 having 5 sub-waves).

For Las Vegas Sands, currently it is either in wave 8 or it can be in sub-wave 1 if wave7 is the end of major wave A. Hopefully the next pull back can provide some indication and hopefully it can provide a good entry point.




The long term charts of Fannie Mae and Freddie Mac looked similar to all the above bank stocks, however their 6-months charts looked different. Both Freddie and Fannie have completed their sub-wave 1 and 2 and also sub-sub wave i and are currently in their respective sub-sub-wave ii of sub-wave 3. Please take note of the double bottoms formation. If this reading is correct, the next surge is going to be the dynamic and powerful sub-sub-wave iii of sub-wave 3. This iii of 3 most likely will break the neckline of the double bottoms with high volume. ( neckline is a line formed by joining point1 and point i of the above chart). I must pray very very hard for it to happen.