COSTCO (COST): Wave 4 Correction Approaching...a Minor Recession?

in money •  28 days ago

SUMMARY

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As can be clearly seen in the Cryptosphere, there is a common sentiment modality as reflected in the common price movements across the markets. This leads to a high similarity index in price behavior, patterns and Elliott Waves. Such is no different in the equities. Many are showing that at a cycle degree of trend which spans years to even tens of years; there is a wave 4 approaching. This can be seen in not only the technology sector but also the consumers. A minor recession could be on the horizon. This would be more so if the short term rates go higher than the long term. In other words, the yield curve would invert meaning that risk averse prompts investors to demand higher rates for shorter term.

Costco (COST) seems to be readying to initiate its cycle degree blue wave 4 correction. Per the weekly chart below, waves 1,2 and 3 appear complete. Wave 4 could usher in a hiccup in growth for payroll, consumption and borrowing. As consumer demand drops, wave 4 will be executed. None of these have happened yet. So, this is yet another case of news or events shall arrive to justify the forecast. During an equity correction, could sentiment towards Crypto be that its seen as a safe haven store of value? Why not!

The subwaves jive quite well with the higher degree of trends. I believe white Wave is complete and if not, very close to doing so. Wave 4 is labeled as an ABC but it could take one or a few of 34 possible corrective combinations. The MACD is still overbought and is likely to begin declining with the correction.

Legal Disclaimer: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this blog post and any other posts that I make and any accompanying material is for informational purposes only. It should not be considered financial or investment advice of any kind. One should consult with a financial or investment professional to determine what may be best for your individual needs. Plain English: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.

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thanks for great info, but as always it depends on BTC...

It's good to read your article. Thanks for writing this article.

Thank you for valuable information

Good work. I like to see companies I am interested in that are seen from an Elliott waves stand point. Mostly I look at a business fundamentals framework and it does not teach you how to read the charts.

Costco is a great company. That's why their stock will keep on rising. Their CEO, Craig Jelinek, is a great visionary. The average employee there gets paid more than twice the minimum wage and has great benefits. I've always been on the other side of the spectrum until I recently talked to a frind of mine who is the COO of an oil refinery. My friend is working towards giving his employees a 4 day work week and higher wages as well as more pay for overtime. I was shocked to hear that. I've always believed that businesses are in business to maximize profits, and that's what I've done with my small businesses. It's nice to get a different perspective from people with higher positions. Costco is a great example for the rest of us greedy pigs.

thank you for the information

Good job @haejin..resteem

I have heard reports that crypto is going for a bull run

Greatest paragraph ever written....kinda scary Haejin knows the future now too..

"Wave 4 could usher in a hiccup in growth for payroll, consumption and borrowing. As consumer demand drops, wave 4 will be executed. None of these have happened yet. So, this is yet another case of news or events shall arrive to justify the forecast".

Could this recent bull run be wave 5 instead? I think we will see one last 'push' in the next year before an extended bear market as you are suggesting. Enjoyed the write up :)

Thanks @haejin this is very helpful

for not being a financial advisor you handle the issues very well, very important all that information

That was a good post thanks

Hi @haejin That is a great post. I would also like to express my good wishes and congratulations for you. Thank you very much....

Have a nice night
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