“Aussie PayPal” Explodes Higher: These Were the Warning Signs
Even in “exotic” markets like Australian stocks, the same Elliott wave rules apply
by Bob Stokes
Updated: August 24, 2018
When a stock falls, do you feel the urge to buy it? Few investors do. Yet, it's precisely at moments like these when Elliott waves can help you spot an opportunity, even in markets that are off the beaten path.
First, keep in mind these two quotes from the Wall Street classic book, Elliott Wave Principle, by Frost & Prechter -- here's the first one:
The primary guideline is that corrections ... tend to register their maximum retracement within the span of travel of the previous fourth wave of one lesser degree.
Here's the other quote from the book:
Sideways corrections tend more often to retrace [a Fibonacci] 38.2% of the previous impulse wave.
Next, here's how knowledge of these two Elliott wave insights was applied to an Australian stock. This chart and analysis is from our June Global Market Perspective [entire wave labeling available to subscribers]:
Best described as an Aussie version of Paypal, Afterpay's startup business is on track to explode from only $23 million in sales in 2017 to $122 million by the end of 2018, according to estimates compiled by Bloomberg. The stock tripled after its IPO in June 2017 while tracing out five waves up. Then followed [a downturn] to the 38.2% retracement level, which put the stock in the range of its previous fourth wave of lesser degree--where corrections typically end.
Indeed, it did turn out that the 38.2% retracement level was where the correction ended.
Not only that, but since that Global Market Perspective forecast, the price of the stock has more than doubled (as of Aug. 23).
As you might imagine, not every Elliott wave forecast works out perfectly, but many of them do -- and Australia's After Touch Group is just one example.
Keep in mind that our Global Market Perspective covers over 40 markets, and our analysts have identified other chart setups that appear to offer fresh opportunities now.
Are Your Eyes Open to These Worldwide Financial Opportunities?
You can team up with our global Elliott wave experts. They constantly scan the globe for high-confidence chart setups that others may miss.
Let them do the work for you as they search for opportunities in 40+ different markets.
Each monthly issue of our Global Market Perspective is jam-packed with actionable information about global stocks, rates, metals, energy and more.
Take a free look for 30 days. Details are just below …
Here’s how Global Market Perspective helps you see and take advantage of the world’s best opportunities -- starting right now
GMP is your window into EWI’s most important insights -- the patterns of human psychology that drive the markets. You get a quick-hitting, chart-led overview of every major stock index, interest rate, currency, metal, energy market and economy. ALL the world’s major markets, ALL in one issue.
You get a 360-degree perspective you cannot glean from any other publication -- and a powerful advantage over your peers. And with instant access to the current issue, plus the previous two issues, you'll get up to speed--fast.
Our 25+ wave analysts deliver their monthly forecasts to you. They are experts in Elliott wave analysis, a method our subscribers know is unequalled in its objectivity. The Elliott wave principle enables GMP to call for rapid accelerations and sudden price reversals that no other method can foresee.
GMP keeps you ahead of 40+ markets*, including:
U.S. - DJIA, S&P 500, NASDAQ
Europe - DAX, FTSE 100 & 250, CAC 40, AEX, SMI, IBEX 35, S&P/MIB, Dow Jones Euro Stoxx 50, RTS and CECE Overall Traded Index
Asia-Pacific - Nikkei 225, Shanghai Composite, SENSEX, Hang Seng, All Ordinaries, Strait Times Index, KOSPI and TAIEX
EURUSD, GBPUSD, USDCHF, USDJPY, AUDUSD, USDCAD, USDMXN, USDRUB, USDBRL, USDZAR, EURJPY, EURCAD, EURGBP, GBPJPY, NZDUSD and AUDJPY
U.S. Treasuries, Bund, Bobl, Long Gilt, Euribor, Short Sterling, 10-year Australian Bonds, 10-year JGBs
PLUS Gold, Silver, Crude, Natural Gas, and more
(* Markets may vary depending on market movement)