The fog clears in the Dow Jones charts

John C Burford uses Elliott wave theory to line up what promises to be a very profitable trade in the Dow.

On Friday, I outlined my case for an immediate turn-down in the Dow (among many other stock indexes) based on my reading of the Elliott wave pattern and my use of the Fibonacci levels to pinpoint two very accurate reversals at the 78% level.

Today, I want to follow up on this story, because it highlights several important principles for traders, and will reinforce the lessons that the new members of the Trade for Profit Academy are learning.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.