If a stock is in a Wave 3, going strong, and then the bear market hits, but it is an emerging market, such as our pick, RSX, how much of a time lapse, generally, occurs before it gets back on track heading to those highs you gave us back in August?

IF I'm right about my wave counts, then we could be closer to the end of wave 3 and ready soon for a wave 4 correction. Wave 4's can go as low as the top of wave 1's (around the $18-$19ish area). BUT, this is assuming my current counts are spot on. If not, the bear market could take the ETF's price much lower than that. What we do know for sure is that there's a lot of upside resistance in the $24-$26ish area and we know that it wouldn't be an odd thing to see the ETF pullback to its 200-week moving average that it's gotten far from (which is currently at around the $18 area). A stock market correction could easily cause that wave 4 correction to that region to happen.

And as far as time frame, that's up to the market. No one can know that for sure. Some corrections are swift. Others take time. But when the overall stock market is stretched so far, valuation wise, a swift overall correction is likely (in its early stages, at least) and so that could influence a quicker correction in RSX too. Remember, when a stock market correction begins, ANY asset can initially sell-off, even defensive assets or lowly correlated assets.

You ask good questions.

Hi Sean, regarding this Russian stock chart, I thought wave 3 usually goes higher than wave 1, and you are saying that wave 3 is almost finished, but is significantly lower than wave 1 at this moment. Can you explain. Thank you

I just saw that you were doing the wave counting short term, I ess counting long term. My bad. I see what you are saying.

It already has surpassed the high of wave 1.

Wave 1 ended at $18.97 and we've already seen $24.05 in wave 3.

It's a long-term count on a 10-year chart.

Click on the chart and it will blow it up larger so that you can see the counts more easily. Sometimes its hard to see them in detail in the smaller/original chart.

Got it, thank you


Thanks for being such an active follower of the site.

You both gave me insight, and I decided to take 38% profits on RSX. Thanks!


Congrats on your great gains. Awesome!!!