50 KWord Ebook

Mastering The
Wavegenius.com
Elliott Wave
Trading System.
WRITTEN AND EDITED BY TED AGUHOB

To All My Fans Who
Bought This Book.
I appreciate all the fun times and trading experiences we’ve shared over the past
10-12 years, and since the creation of the domain name “Wavegenius.com” in
2005 and the creation of “gemxwave.com” in 2002. It’s been a blast..from higher
highs and lower lows, the experiences I’ve gained has been mind blowing. This is
the second edition of an existing book, yes, but a VERY VERY dramatic increase
in content and everything has been finally updated since this old book was created
in 2006. There are bits and pieces from 2006 to 2012, but nearly 80% of the con-
tent in this brand new book is completely new. You will find very detailed insights
into my brain and how I trade, so be prepared..this will blow you away.
Again, thanks!
Mr. Ted The Wavegenius Aguhob
i
CHAPTER 1
Introduction.
Note: 80% of the content is brand new in this book from previous versions and old
techniques have been updated for 2013-2014. The first dozen or so pages are the
story of my trading history, so you can skim past it if you already have the old ver-
sions of this book. Trust me. There’s a LOT more stuff!
Finally the moment you've been waiting for...this is the BRAND new 2013-
2014 version of the big book that I used to sell for $49.95 to $89.95 a piece
on all my various sites..welcome to Wavegenius.com 2.0! I’ve essentially dou-
bled the content, but it’s not a doubling of fluff or BS that most people would
consider doing...This is the brand new version of
this old book that has seen many updates since
2006. I’ve basically taken the newest version
which used to be 22,890 words, and DOU-
BLED it. Stuff has really changed over the
years, and it required my adding to this old book
and making it better and way more detailed. I kind of glossed over tech-
niques that I should have talked about years ago, but now everything i
know..(I brainstormed for a couple hours before I was going to create the re-
write of this book...and thought about all the stuff I didn’t write about and all
the secrets and my take on the current 2013 state of the ever evolving elliott
2
wave patterns) has been written and placed in this brand new book. Also the
format is all standard..not a massive 24 point for every word in the book, but
the regular 12 point font. I made sure that this book in the future can be pro-
fessionally published and distributed widely without complaints from any-
body who decides to invest into this.
My take on the elliott wave is VASTLY different from 99% of elliott wave ana-
lysts out there, because my accuracy has been on record correct 80%-85% of
the time. My long term 3rd wave calls have been truly amazing, and I want to
detail in this book how EXACTLY I was able to do it. To me it’s a very simple
process due to the huge amount of experience I have from years and years
and minute by minute analysis of wave patterns...I’ve seen them all and seen
them evolve...most elliot wave analysts follow the perma bear trend, and even
though we’re in a clearly defined bull market, they refuse to accept that they
are wrong and will never change.
I’m here to change whoever is out
there and can recognize my
talent..and dare I say it....”Genius”...
In the past 3 years from 2011,

2012, and 2013 my revenues on
Wavegenius.com has gone up exponentially and I’m anticipating earnings of
nearly $170,000 net profit by the end of 2013. 2011 was a mere
$15,6000..2012 was over $60,000 and this year 3 times 2012. Factor in the fact
that I now have 4-5 very talented employees working very hard on my site
every day, and the potential for growth right now is limitless. I’ve learned
many new skills and seen many new patterns, and I want to share with you
what I know in this very book.
3
I will not hold back anything...at all. You will see everything bared out for
you in extreme detail. Do not miss any word that you are about to see..this is
some “serious shit!”
Anyway, You could be a long time subscriber or follower of my work. But

the bottom line is this, you've clicked through everything to finally be able to
have the chance to figure out, in detail, all of my short term trading strategies.
The details are very important since trading is very intricate work. You can't
just wake up one day and master trading
overnight. It takes years and years of trial
and error, going through the best of times
and worst of times over and over, cycle after
cycle.
But luckily you've discovered my work, and

being that I've seen the internet 90's (yes I
traded during the booming late 90's), I've
seen 9/11/2001, I've seen the housing and
commodities bubbles, I've seen the collapse of stocks like XLA and TERN
(you've never heard of those I know, but I'll get into them), and I've seen the
collapse of the banking industry. It's been almost 11 years since I've started
trading full time.
Many of you who are reading this book may have heard about some of my
"legendary" trading exploits, from 100% and 200% gains in a matter of weeks,
from my "Joe DiMaggio" streaks of up to 30 trades in a row without a loss.
You've seen the .pdf files of my E*TRADE records and Forex records and
know about the Elliott Wave calls. That's where it all starts. Elliott Wave , oh
yes, and Fibonacci.
4
Before I get into the details of my short-term strategies, I have to go into
detail about my trading history. The detail about my triumphs and defeats is
very important in building character as a trader. Hopefully by reading this
book you could overcome the defeats early, or even avoid them when it's pos-
sible. I've seen it all, being that I've traded for a living for such a long time.
5
CHAPTER 2
My Early History.
Before I tell you the story about my early early trading history going way
back to the late 90’s, I need to describe the state of the new 2013-2014
Wavegenius.com. 
As you guys probably know, I tried to get $500,000 - $1,000,000 (3-6 time
projected earnings for 2013) for my website Wavegenius.com on
Flippa.com, but failed to sell it at that or near that price. That’s ok be-
cause by fate, (was almost the end of the world by the way) I met Eric, Jor-
dan , Rene and all the new Wavegenius.com team members after this auc-
tion had ended...I made a 50/50 deal with them and now I’m just a con-
tent guy and that’s pretty much it. They are brilliant coders, software engi-
neers and website designers and their goal is to drive revenues into the
millions by 2015-2016. It’s very possible...in one month from Nov 2013 to
Dec 2013, traffic and all metrics across the board QUINTUPLED. I’m not
even kidding!
The 90’s. $2000 into $34,000.00! 

I used to be an "Ebay Power Seller" of high end basketball cards in the
90's as a living. Don't laugh. It was was easy in the 90's. Put a bag of dog
poop in a 
6
plastic bag, and throw it on Ebay. Instant profit. Money was flowing
everywhere..there was TOO much money even...but the experience I
gained in speculating in this fun, but unusual hobby were the pre-
cursors to my “legendary” stock trading career and exploits. 
My early days as a speculator began in 1997 when I discovered and be-
came a fan of a young talent named Kobe Bryant. The first 
time I saw him was late '97 when in a pre- season Wizards game he vi-
ciously dunked over a fellow rookie Ben "Before I left the Wizards And
Became A Perennial All-Star" Wallace. Kobe just completed a vicious
cross over to get to the basket, and didn't see Ben Wallace...but when
Ben came up to block the shot, the young 18 year old Kobe dunked so
wickedly over him that you HAD to notice. 18 years old with hops and
skills like Michael Jordan. 
Anyway, to make a long story short, during the course of the season Kobe
would only play 18-20 minutes a game. BUT he would score as much as
THIRTY points 
in those paltry minutes. This made him under the radar (like stocks), and
undervalued his basketball cards. I began accumulating as many of his
rare basketball cards (called the 96-97 Topps Chrome RC) as I could...by
early 1998 people discovered, in a mass audience, just how good he
COULD be during the All- Star Game and a Jay Leno appearance. This is
when the cards peaked, and I sold them all...
7
By the way, I spent approx. $2000 in 60 of those basketball cards and by
time I sold them, they shot up to over
$34,000.00(!). I basically bought and held
them for several months like I would
stocks..and that's when my speculating ca-
reer began...in sports cards. The funny thing is,
the moment I sold all of them was when
the Kobe Bryant cards started  to cas-
cade downward..I'm talking REALLY cascade
down. The
main card in my collection was the 1996-
97 Topps Chrome Kobe Bryant #138
Rookie Card, and it went from $550-$600
a piece down to $120 a piece by mid-
1998. What didn't help at all was the NBA
strike that took place 
that year. 
But this was a blessing, because the se-
verely undervalued #138 Chrome RC of
Kobe was "ripe for the pickings" I remem-
ber like it was yesterday..the overall basketball card market was down be-
cause of the strike, and around Nov of 1998, the strike was over and the
NBA was playing ball again..and so was I. I took close to $5000 and
bought 40 of those 
8
Kobe Bryant Chrome cards. You can see me 
ranting and raving to this day on the Google Groups message
boards...just type "aguctv8" and you'll see me everywhere in 1998-99 talk-
ing about this one card. Within a month they doubled back to $250+, and
by May of '99 they were back to $450-$500+. I basically bought the dip
during a period of duress in that market, and took complete advantage of
the situation. I didn't sell them at the peak, but I tripled the amount I in-
vested by selling all of them for $340-$360 a piece. This became stuff of
legend...but the big money maker was just
around the corner. I called them the "Master-
piece Theatres".
I'd speculate $5000.00 into Sports

Card portfolios and everybody wanted to get
in on them on eBay. They heard about my
Kobe exploits, and soon each "Masterpiece
Theatre" auction was selling for triple or quad-
ruple what I invested..just because of
word of mouth. They were beautiful auctions with amazing graphics for
1999. You could say these auctions were like a moldy image of Jesus on a
slice of white bread...it was truly insane. This was the 1990's guys.
The experience and thrill I gained in speculating was a great experi-

ence for a young impressionable man like myself. 
Discovering when to buy cards (or stocks) when nobody was looking, and
profiting 
9
when everybody knew was one technique that I use today. One lesson
was finding the "top". When a taxi driver is spending the entire ride rant-
ing and raving about stocks he bought, you know you need to get out. To
translate this to the stock market, it's like the bull/bear ratio. When
there's too many bulls in the market you need to get OUT..but when
there's too many bears, that's when you have to get "in." It was also an
early lesson in the Warren Buffet technique of buying when they're hated
and selling when they're loved.
10
CHAPTER 3
Discovery Of The
Stock Market
Discovery Of The Stock Market, and the Technique 
In late 1998 I would visit my mother and she would always be behind the
old 233 MHZ computer cheering and watching the television like a hawk
(CNBC). I would look at the screen and notice ticker symbols with huge
numbers next to them...AMZN...CMGI...EBAY...BCST...YHOO.
..GCTY...I barely knew a thing about the stock market but I could recog-
nize the brands. EBAY was one stock I'd obviously know as well as
YHOO and AMZN. Little did I know that these stock were set to explode 
YET AGAIN. 
In the fall of '98 was the bottom after the Long Term Capital Manage-
ment blow up. If you were trading in that time, you'd know that the stock
market got halved when LTCM went under. That was just one factor of
the crash of '98 (yes guys there 
was a CRASH in 1998!). My mother had the intuition to swing trade the
mighty internet stocks near the bottom, and boy did she profit. 
I was hooked when she'd rant about the $5000 profit she made trading
AMZN on the way up in the winter of '98...or the $3000 she made on
EBAY after it IPO'd or CMGI the 
11
next day. I was mesmerized by it. She would also trade ETFC (E- Trade)
and had an E-
Trade account.
This was the
early early days of
internet stock
trading. I mean E-Trade was a RED HOT stock back in the day, and my
mother had just opened an account. I've been using both Schwab and E-
Trade ever since.
Any- way, I would watch

what she did...she had
$20,000 to trade, and
I discovered something
called "margin". She

basically had $40,000 including margin to trade with, and she'd use ALL
of the account with margin to
buy these huge internet stocks
(this was well before they split
multiple times obviously). The
stocks were so huge that you really
had no choice but to use the en-
tire account +
100% margin. 
What she would do would be to buy the stocks right at the highs at the
12
close, and sell them the next day when they opened. Buy at the close, sell
at the open. I 
don't have any idea how she developed this technique, but I thought eve-
rybody was doing the same thing. So basically what I learned from my
mom was this. If you want to trade that huge internet stock (like GOOG
or AAPL 10+ years later), you would margin "to the hilt" like she
said...and wait until the close to buy them when they get frothy and close
at the highs, and sell them at the open when they were "congested" (I'll
get more into this phenomenon later in much more 
detail) the very 
next day in a well calculated swing trade.
13
SECTION 1 - DISCOVERY OF THE STOC K MARKET
Party like it’s 1999 and QCOM!
I observed my mom's technique and how she'd repeat this over and over
again..since gaps were frequent and stocks would ramp at the close, it
was a no brainer..at least to her and me. Little did I know that just about
everybody involved in swing or day trading would NOT do this..it's
frowned upon to "margin to the 
hilt" but to this day, I still do it a majority of the time. 
Well, I made over $40,000 total in 1998, and 
in ‘99 close to $80,000.00 and continued to rake it in in the sports card
market. I would still observe the stock market, but didn't have the
guts..until I was forced to. My huge Ebay auctions that I'd easily make
100%-200% profit on with sports cards began to die. The very last auction
I did that year only returned a paltry 20%, so I wanted to test the waters
in the stock market. 
My mom was RAKING it in with this mysterious stock "QCOM". She
called it the "BIG Q". This was Qualcomm before the big Iphone revolu-
tion and mass distribution of 3G Wireless phones...AND before it
split...but QCOM was under the rader while everybody else was getting
their butts handed 
to them by the sideways market in the first half of 1999. It was a mess.
AOL, EBAY, YHOO, AMZN etc...they were wildly volatile and there was
no consistent direction. It was one long gradual flat line until late
14
October of '99. 
However, the ONLY stock that went up consistently was the mighty
QCOM. By late October of '99, I decided that I would imitate what my
mom was doing...buy stocks margined to the hilt, and buy at the close
and sell at the open...I decided since QCOM was the only stock that went
up during the sideways first half of the year, that I'd pick 
that one stock, and that one stock ONLY to trade this newfound tech-
nique. 
Well guys...it worked. Remember '99 when CNBC would open with peo-
ple ranting about QUAAALLLCOMM QUAALLLCOOM. And they even
had this funny clip on the show with a low breathy husky voice shouting
QUALLLLCOMM QUALLLCOMM. EVERY TIME this technique
worked with QCOM. It would ramp into the close at 3PM, when I'd buy
it and the very next day gap up HUGE and I'd sell...and than I'd repeat it
the same day...ok, buy QCOM at the close, sell at the market open the
next day in a gap up. The $1000 price target and earnings came out with
a huge reaction and that was it. 
By Jan 2000 the $10,000 invested in the trading of QCOM became close
to $30,000.00 in approx. one month. It was all thanks to my mommy's
technique that she taught me in 1998. Funny, huh? I didn't learn trading
in college or a 
mentorship. My mentor was my mother, and I still thank her for that to
this day. 
But again, this was the '90's and everything was easy ...little did I know
15
that in 2000 we were about to crash. 
Big time.
16
Reality Check, and Y2K
In early 2000, QCOM got that final huge gap up. It was 800+ in last trad-
ing day of Dec '99. (Yes guys, QCOM was $800-$1000 a SHARE). The
first trading day of 2000 I sold ALL of the QCOM shortly after the final
gap up. This was the last time QCOM acted like this....pre- market it was
$250 a share, and I ended up selling the final lot of QCOM for around
$225 a share....final tally was a grand total profit of $20,000.00 on
$10,000 invested. $10,000.00 became close to 
$30,000.00. 
This, again was the VERY peak of QCOM and the very peak of the first
wave of my investing career. I was about to start "Wave 2" of my life, and
this was BEFORE I discovered Elliott Wave. 
In early 2000 I decided to change my technique to buy and hold, since it
stopped working with QCOM...my online trading buddies (now ex-
buddies) would tell me that buy and hold was bla bla bla this and that
and my technique was too dangerous. They introduced me to a website
that was built around the work of a man named George Gilder..they told
me crazy stories about him. Like if you bought every recommendation of
his since he started giving the advice out in his 
columns, that you'd make 10X what I was making using the technique
that my mother taught me. 
Well, turns out..that was the start of a large correction in my life. I de-
17
cided to listen to other people's advice and avoid listening to myself and
sticking with a technique that worked wonders for me in late '99. It
would have saved my butt from this disaster because after the crash of
2000 stocks rarely if every closed at the
highs and gapped up at the open. 
What happened was, I decided to observe
George Gilder and the "Gilder Effect" and
analyzed every stock in the past couple years
that he mentioned in his newsletter. Turns
out they were right. QCOM was one of
them, so that alone drew me in. 100% of every stock he picked was up
1000% or even 10,000% (!). 100%.
No joke. This is how crazy the internet heyday was. I also observed for
the first time the reaction to a Gilder pick. My buddies told me...wait un-
til Briefing.com mentions a Gilder pick and buy and hold...this was just a
month before the very peak of the internet bubble. 
First pick I dove into was Terayon, or TERN around Feb of 2000. I de-
cided to buy minutes after it got mentioned on Briefing.com, but little
did I know that the Gilder effect was MASSIVE. I was thinking, 
ok maybe 10 points here or there...not two HUNDRED points. TERN was
mentioned, I bought...right at the peak...it literally shot up from NOTH-
ING to over 250 pts and I bought near the peak and held....next 
day was fine, it gapped up and I held...made money great...next pick I
jumped into was Xcelera...or "XLA"....XLA was even crazier...it was
probably .15 and went to over 500!!! I bought near the peak and held
18
thinking that I was gonna be rich. Like my $30K invested was going to be
millions. I was losing my mind. And so was everybody else...early March
2000, my TERN and XLA were the victims of 
the worst crash in history. The internet bubble burst March 10, 2000 at
NASDAQ 5150+, and I was holding the most pumped up and dangerous
stocks known to man. You don't need to know more detail because if you
were trading during the peak of March 2000 in any internet stock, you'd
know my fate.
19
2001 And The Forced Discovery

Of Elliott Wave
I was living in Los Angeles looking for hope, and it wasn’t fun. I sold off
all the rest of my basketball cards, only to dive into more "Gilder picks"
in the summer of 2000. I tried to fight the internet crash by buying stocks 
like AVNX, well, just AVNX (Avanex) which was Gilder's last pick that
rose remotely on his recommendation. 
By fall of 2000 my last $35,000 nest egg of basketball cards became
$8000.00. AVNX kept gapping and dropping..gapping and dropping...and
all my faith in George Gilder was erased completely...obviously. It didn't
help that Al "the will of 
the people" Gore would make it 10X harder for me as the stalemate elec-
tion of 2000 erased every gain I made in 1999...and in 1998...and in
1997... 
All I heard from so called "expert" technical analysts in 2000 was this:
"Oh we gonna 
double bottom here.....no we gonna triple bottom here"....as you might
have figured out, that double bottom CRAP does NOT work consistently,
and I will NEVER use it in my current analysis. But in 2000 I discovered
technical analysis, which was a blessing in disguise. None of the double
bottom crap worked, so with what little money I had left, I would go to
the Border's in 3rd Street Promenade in Los Angeles and read read read.
READ TO FIGURE OUT WHAT WENT WRONG! 
20
If it wasn't for my parents supporting me in 01, I would have been one of
those crazy bums who walk up and down Wilshire screaming about the
end of the world. In Jan of 2001, I discovered a website that would be 
the start of a big change in my life. The mighty "Silicon Investor" ala
Siliconinvestor.com, where dreams were being made in the 90's..there
were stock market gurus in the 90's that became famous only to lose eve-
rything like me in 2000 and live with their parents 
too..many of them were born on that website, and I
still frequent it to this day. 
Anyway, the technical analysis chatter was mind
boggling...every day I'd learn something new..first
were "head and shoulders"...than came
MACD and
RSI...Stochastics...Candlesticks...fibonacci...a nd finally (drum roll) Elli-

ott Wave. Despite 
the depth of knowledge that came from hanging out no that website
there 
weren't many Elliotticians..I could count the number of elliotticians on
that website with my thumb. Yes 1, and his name was 
Don Wolanchuk, ala "da_cheif". He's still a buddy of mine and I'm a fre-
quent 
poster on his message board.Donnie was and still to this day is very
cryptic...I really had no clue what he was saying but it fascinated me. One
21
day while hanging out at the 3rd Street Promenade Border's I found a
book wedged between a huge book about "double bottoms"
and a Stocks And Commodities magazine..it was blue and looked worn,
but it was the only copy. On the front page read 
"The Elliott Wave Principle" by
Frost and Prechter. Lo and be-
hold, this was the book I was look-
ing for and it changed my life. I
didn't know that it was the
ONLY book of it's kind at the time,
but when I opened the cover it
screamed at me. Not only did I understand it, it was like the book was
talking to me.
22
March 2001 And The “Birth Of A

Legend..”
In those two months since discovering "The Elliott Wave Principle" and
reading it cover to cover multiple times, I took my last remaining
$8000.00 and my last bit of hope into an E- Trade account. The market
was starting a "hope rally" which would last all 
but 2 months, but that was enough for me...I hung out at
SiliconInvestor.com observing other techniques that I could apply, and I
integrated them with Elliott Wave, paper trading for about a week. I dis-
covered that "hey, this sh*t works!" The fibonacci section was magic for
me, and magic for my 
trading. 
My first trade with the Elliott Wave knowledge was with BRCD. Yes, that
piece of trash stock BRCD. It was one of the 4 horseman I
traded....RMBS, BRCD, ELX and QLGC. What I decided to to try was
this. Use my mother's "buy at the close, sell at the open" technique and
combine it with fibonacci and elliott wave. 
Basically, after reading the Elliott Wave Principle book, I discovered the
Wave 2 zigzag and the .618 fibonacci retracement level. I would wait until
an ABC zigzag formed, and buy right at the .618 fibonacci retracement
level if it got there. For 
some bizarre reason, this happened multiple times in March-May of 2001.
Enough times to make a killing.
23
I happened to be on the "DrBob" message board of Silicon Investor,
and made my first trades/calls live on that high traffic message board. For
the next couple weeks, I would buy at .618 and sell at the market open
the next day if I saw it. I would scan through the 
four horseman first, followed by Briefing.com to find stocks. I made sev-
eral amazing trades on that board that caught the attention of
everybody...BRCD at .618, sell at the open the next day. KABOOM. ELX
(EMLX at the time) at .618, sell at the
open KABOOM. My biggest trades
happened to be of Priceline.com, or
PCLN when it was almost single digits.
The .618 retracements were magic
and I bought every .618 retracement af-
ter a zigzag move there was. I was un-
stoppable and a lot of people noticed. 
By May of 2001, my $8000.00 account became approx. $25,000..I was mak-
ing 
almost $8000 a month with an $8000 account! I was in Los Angeles liv-
ing the high 
life with the money I made. I remember late nights at the L.A. bars with
my brother and Tom, from pre-Myspace (yes, THAT Tom) and talking
about the market..and the dreams I had of the future. I bought a fully cus-
tom built computer with an amazing 1 GHZ processor (LOL) to help en-
ergize my trading, I put a down payment into a new car, the female neigh-
24
bors would come visit and I'd brag about my trading exploits...but again,
a correction was looming.
In June of 2001, I made yet another massive trading mistake...Silicon

Investor heads were talking about the money they were making on op-
tions, and I was like "what are options?" I was
pretty cocky at the time due to my huge 
gains in the previous 2 months, so I wanted to
take it to the next level, and I researched options.
But it was done so hastily and quickly that I

failed to recognize what could have happened
if I screwed up. 
That same month I went to a couple "E- Signal" seminars which were
free and being held locally near Santa Monica, and wanted to know the
direction of the market for the rest of the year. These idiots helped cause
another correction in my trading career...they told me that a Wave 3 was
coming to the upside and I should "stay long" according to their soft-
ware. It was pretty basic. Plug in some crap and voila, you have your wave
count. The software said "Wave 3", so I decided "hey a computer

called it, it's gotta be right." 
WRONG. VERY WRONG. I took my basic and very limited knowledge of
options trading and my belief that a Wave 3 was coming from Esignal
into an E-
Trade options account. I decided I would buy calls in BRCD, ELX and
QLGC. At around $. 50 each. Oh boy. 
25
By August of 2001, I would cry behind the computer as the market went
into a free fall. Where was this Wave 3 that this computer software prom-
ised? The Wave 3 never came. Well, a Wave 3 DID come, but it wasn't the
direction I wanted....my 
$25,000...well, became $0.00.. 
I had nobody to blame but myself. Poor research. Not trusting my own
technique. Believing someone else. I would never ever do this again, but
even as my calls became worthless, my following became bigger and
bigger...in fact the people on 
Silicon Investor, who were completely oblivious to the fact that I got
wiped out, kept coming in droves. I was easily and clearly the number
one "guru" on the website, but I had nothing left...and to make things
worse, 9/11 was just around the corner. 
But this was a blessing in disguise.. Little did I know that that $25,000
would be back in my account months later thanks to a call that made me
an temporary internet celebrity, well, at least to stock traders around the
world.
26
Sept 2001 And The Call “Heard

‘Round The World..”
In August-Sept 2001, I was a very popular figure on Siliconinvestor.com.
It 
seemed like all the traffic would be funneled to my message board "gem-
x's incredibly accurate elliott wave forecasts" and Silicon Investor was
one of the top stock market message boards at the time. I had the #1 mes-
sage board for months 
in a row, and everybody was listening. My last post on Drbob's message
board had the cryptic last trade..where I bought calls in ELX QLGC and
BRCD, so there was a good chance they knew my situation...the traffic
partially came from people who were curious about what happened to
me. But I kept my head up...and was well aware that I could monetize this
new found fame any time I wanted to, so that kept me going... 
But weeks into September a new downward 3 formed, and it was very
unusual...I couldn't figure out the wave structure the way I wanted it to
go...and on 9/11/2001 I woke up to CNBC and people saying "oh god no"
and "i can't believe what I'm seeing"...the twin 
towers I saw live on CNBC were hit by two planes and began to
collapse...it was a bizarre situation where I was living. There was an infes-
tation of fleas in the apartment (that I talked about on Silicon Investor),
unusually cold cold spots in my room and on my bed...I could swear I
was hearing voices...I even had a 
27
dream about the devil just a day before 9/11 laughing at me. 
Me and my brother and his girlfriend, when I visited them, were huddled
behind the television praying that Los Angeles didn't get an attack. No-
body knew what was going to happen. That week I had strange suicidal
thoughts...I was thinking that despite my new 
internet celebrity that nobody would care with the market the way it was,
and I'd be broke and out in the streets by 2002. I had more dreams with
voices and the fleas in the apartment would not stop biting me....but on 
9/20/2001, the week the market was forced to re-open, I had a
revelation....I saw that we were approaching the previous Wave 4 low in
1998, and the p/c ratio and VIX had approached bottom levels. I went on
my message board and declared a bottom based on my analysis....minutes
later the market rebounded from the lows...in a big way...not near the
highs, but enough ...people swore that I had lifted the market up with my
words...and I typed the lord's prayer on the 
post with a picture that shocked a lot of people. It looked like the si-
louhette of the devil had appeared in the smoke on the Twin
Towers...people believed that I had confronted the devil, and defeated
him...I'm not saying that it actually happened, but enough of the tens of
thousands of people believe that I did...The following week, not only did
I call "a" bottom in the market..I acted on it.. I bought QLGC and QQQ
calls near the beginning of that huge wave up, (with the rent and utilities
money lol) and they went ballistic. I mean REALLY ballistic. I don't have
the records on my E-Trade account from 2001 since they're erased every
5 years (I believe), but if I recall, the QLGC calls were up almost 1000%
28
and the QQQ calls 100%...I bought them and rode them almost the en-
tire move from around 1387 NASDAQ to around 2100 
NASDAQ. The posts of those calls are still on Siliconinvestor.com from
2001. It's pretty retro to check out if you have the chance. 
I got e-mails from some pretty wild people..I'm talking priests, freema-
sons, rabbis, CEO's, the early foun-
ders of INTC..I mean some pretty
wealthy people ask- ing me ques-
tions. One freemason even called me
up and recorded my conversation
thinking that I was "the 
one" ....yes, they called me "the
one"...but I killed off the religious ele-
ment of the entire experience when I began to rant about short sellers ...I
mean REALLY rant, like in a cursing and threatening way...it scared peo-
ple at Silicon Investor to the point that 
they gave me a lifetime ban. 
Basically..I was so hurt and so mad at people who shorted during 9/11
that I went 
over the top. The handle "gem-x" is just a handle now, and can't be ac-
cessed by anyone. But the new "gemx" (minus the dash) is back on, and
yes that's me. When I got banned from Siliconinvestor.com, the traffic to
my board obviously plummeted, so I planned a strategy to grab as many
e-mails that I could and contacts that contacted me. I hired one of my SI
buddies to post my forecasts on the same board for me, and at the same
29
time ask if they wanted to be added to my personal e-mail list....well, the
list in short time num- bered into the
thousands...and that was enough...
That e-mail list was the cornerstone for the

new website I called "gemxwave.com".
30
2002. $99 into $50,000.00
It wasn't easy building websites at this time, but from between Dec
2001 to March 2001 I contacted my e-mail list about forecasts and elliott
wave counts frequently....and people loved it. It was the only service of
it's time with this much power...but I didn't expect a list of about 2000
people to do anything remotely profitable yet. I figured I had to trade fre-
quently and keep the forecasts consistent...but in 2002, my bottom call of
Sept 2001 unrav- eled, and the mar-

ket began a new freefall..I had to act
quick before the . 618 fibonacci retra-
cement level broke... 
Just a week before .618 broke I hastily
threw together a website with paypal
links. It was and still is the worst
looking mess I've ever built...it cost me $99 to get hosted. It was ugly, yes,
but it was enough to launch the business I envisioned..but
before I was going to launch the site, the freemasons contacted me

again. They wanted me to trade a $1 million dollar account, and while I
worked with them, I'd learn their Gann secrets. The Gann stuff was way
too complicated and to this day I have yet to figure it
out...Elliott Wave was all I needed.
31
The man in charge was a guy named Rabbi Marco. He has a pretty bi-
zarre website at www.rabbimarketmaker.com with all the freemason sym-
bols and weirdness, if you want to read more about him. These were the
same guys who taped my phone conversations and called me "the one"
They asked me over and over again. "Are you the one?" I would reply, are
you nuts? And I would rant about stupid crap that killed the entire "the
one" thing with them. If I pretended I was Keanu Reeves, they would
have gave me their left legs to work for them. But the catch was "DON'T
LAUNCH THE WEBSITE.". I decided after a week working with them,
that I didn't want to wake up at 
5AM every morning to some dude yelling at me every day, and decided
..I'm launching the website.. if they're making a big deal out of it, it's
gotta be huge, right? 
32
I quit their little hedge fund with the "guy who yelled all the time"
and decided to take the dive. I would launch it, deliver an e-mail to just
2000-ish people, and pray that I make a couple hundred dollars. Boy was
I wrong. That month I had 21+ Annual subscribers at $299.95 each and a
lot of of monthly and quarterly subscribers..I made close to $9000.00 that
month alone in April 2002. Not bad for a $99 investment....and in the
coming 11 months after that subscriptions added up to $50,000.00...so
not only did I make back the money I lost from the bad 
options trade in 2001, I made TWICE that on subscriptions..
33
03-04. $2540 Into $45,000+. It’s

The Trading That Matters!
I may be straying away from the entire point of this ebook, but the his-
tory does give some good insight into my trading techniques, which I will
now begin to go into detail on...starting with 2003. From 2003-2004 I
turned $2020.00 into over $45,000.00 in my E-Trade account, and proved
to a lot of people that I wasn't a bunch of fluff and magic mirrors...or
some holy internet celebrity who's taking advantage of "believers"
In January of 2003, I decided to create a very tiny account...so tiny that

it would
barely go into margin. In fact it was around $2020.00. About $2000.00

and the cost of two trades. I made a good personal salary pretty quick out
of nothing, why would I only use $2000.00? Fear, basically. I didn't be-
lieve my own calls since Dec of 2002 was a pretty awful
month. I wanted to preserve the rest of the money
I made in 2002 and not use all of it.
But this made it extremely hard to trade, since the new day trading
rules were in effect, and if I screwed up once, I would go out of margin.
This makes this feat THAT much more impressive.
34
In the year 2002, I spent almost the entire time trading a fantasy ac-
count, and rarely my own account...my personal record in 2002 was al-
most non-existant in real life because I wanted to preserve the capital I
made. But if I used a real account with real money I would have easily re-
turned over 300%....my techniques became real advanced after this one
year trading. When you're trying to keep hundreds of subscribers, you
NEED TO trade like a
god. ..especially during a nasty recession.
What changed was this. Instead

of buying at . 618 fibonacci retrace-
ment levels after zigzags, I'd buy
into rallies ONLY at the break of
.618 or .786 to the upside in a 3rd
wave. Basically it's like this (more detail in coming chapters) Wave 2 zig-
zag, and a rally back to the highs of W1. But make an early entrance when
it reaches or surpasses the . 618 fibonacci retracement or .786 retrace-
ment. This fibonacci method, plus my mother's method became LE-
THAL.
The market was down most of that year, but I shorted as well. I'd do
the exact same thing to the downside, in an inverse fashion. Basically, W1
down, upward W2, drop below .786 retracement to downside, go short,
and ride the 3rd wave
35
down. And repeat again and again. It was pretty easy.
On the long side, I rode the early 3rd waves
of gold stocks like NEM, GG and

GFI...basically the only bull market at
the time in 2002 using this same tech-
nique.
And on occasion the random hous-

ing stock, before the huge bubble formed. I
spotted these trends early and rode them up (more detail in later chap-
ters).
In 2003, this technique became UBER-lethal. The $2020.00 (edit: this

is important...based on detailed 1099 2003-2004 records it was $2020, but
the first trade was actually RMBS using $2540.00 with margin) I used to
trade became $10,000 pretty quick thanks to one stock. RMBS. Good 'ol
RMBS. In late January 2003 and into February 2003, RMBS triple in val-
ued
almost overnight. The W2 zigzag during the runup was frequent and
the 3rd wave breakouts huge. I repeatedly hit RMBS
on the buy side over and over seeing this pattern, and that $2540 be-
came close to $6000.00....
36
And than in 2003, came the chinese internet stocks (identification of
early trends is key and will be described in more detail) SOHU, SINA and
NTES. These stocks made such powerful elegant 3rd wave pattern breaks
so frequently, that my account kept exploding...
In July of 2003 I met a man named Dr.Craig Brown, who was a sub-
scriber since the fall of 2002, in person. He was fascinated in the future
of what I could accomplish, and offered me a job. To trade his initial
$100,000 account using my techniques. He caught me at the perfect time.
I
was offered a 50/50 split. $100,000 may seem like nothing to the big-
wigs, but for me, it's WAY more
than enough. I traded both
his account and my account
and by March 2004, I aver-
aged close to $8000-
$10,000 a month on his ac-
count going straight to my
pocket. By Jan 2004 he made it $500,000 and made way more. But
Craig fell ill in March 2004, and couldn't handle the strain of staying
up all day watching my trades, so he was forced to close the account. I
continued to wreck house trading TASR the LASER and RIMM in 2004,
but it wasn’t the same without Craig.
37
Basically between April 2002 to Feb 2004,
my $99 in-
vestment in my
website turned
into over
$250,000.00...by 2005 I begun my three year venture into Forex, website

market- ing and
web design at
local col- leges..
the dark
story of 2006
to late 2008 will
be detailed in
further chapters
of this
38
book....as well as the renaissance period of Wavegenius.com that kicked
off BIG TIME with the two incredible 2009 bottom calls I made in Feb
2009 on Youtube...I’m talking...almost the EXACT NUMBERS and
DATES...
39
CHAPTER 4
“The Pattern”
This is powerful knowledge that you can use for yourself, or with a sub-
scription to wavegenius.com a way to know first hand what’s in the mind
of yours truly, Ted Aguhob. 
This is the first time EVERY that I will be detailing my favorite high per-
centage trade setups. I focus on these setups exclusively because of how
frequent they work. 
On this video/Ebook we will be focusing on the 80% Wavegenius Trade
Setup. I essentially perfected this trade setup and formation way back in
2002, and finally applied it in early 2003. This is the most frequent setup I
use and can be lethally accurate. 
I’ve used and nailed this trading pattern I invented and almost perfected
(80% is pretty damn good, but I think I can reach 100% profitability with
this setup and the 90% setup soon!) over
the past 11 years over a thousand times, and on real trading accounts,
client accounts and on hundreds of real time posts and e-mail, text or
messenger live signals sent to my client base, 8 times out of 10 it’s been
profitable. I can go on unconscious 100% profitable streaks for months
with this pattern. My biggest streak without having a loss I believe was
40
somewhere in the neighborhood of between 22 to 30 in a row. Not once
but SEVERAL times..
It sounds insane I know because highly paid wall street traders make a
good living..actually a GREAT living with their MBA’s and licenses only
profiting 55% to 60% of the time. I’ve read stories of guys who profit 40%-
50% of the time, half the time they’re gambling on big 10%-20%
moves...up AND down. If you get caught on one of their down 20% moves
FIFTY percent of the time, life would suck pretty bad as a trader. I can’t
imagine the stress, because I don’t trade or gamble like them at all. You
probably already know that and that’s why you bought this or all the vid-
eos that I made...That’s very very stressful, but this formation that has
been battle worn and proven for over a decade and is the cornerstone for
my extremely accurate and potent trading style. By the way this is the
most frequent trading pattern for me, but...I do have another invented
pattern from 2011 that just came into prominence. The NINETY percent
trade setup. That formation is detailed on another video (which you may
have already purchased.)
41
S E C T I O N 1 - “ T H E PAT T E R N ”
What Works And Doesn’t Work In

Technical Analysis
What works and what doesn't work in technical analysis, every form.
This is a list of TA that can be seen in my own analysis—only the most
consistent and optimal. I've been studying technical analysis for 11 years,
and I've tried just about every form, tested and tweaked them. I blend
"what works" in with my own Elliott wave analysis to narrow the odds to
as close as "zero" as possible, or to
turn to Bigcharts.com.
Bigcharts.com, a free service, is what
I've been using since the very first
day I learned technical analysis.
You'll see moving averages, RSI, slow
stochastic and more.
There's really no need for fancy Fi-

bonacci or Elliott wave software. They're robotic, only human eyes can ac-
curately read Elliott wave correctly. You're wasting thousands of dollars if
you listen to their "lies". They claim a lot of "stuff", without real actual re-
sults. I HAVE real actual results to back my claims, anyway, here are
forms of TA that I've studied, and how reliable they are as indicators..
42
Max Pain.
This is a biggie for me every expiration week, typically the Wednesday

before the week of expiration there's
a reversal of the recent trend, this
is when I start to analyze max pain.
For example for the QQQQ's, I'd
look at how many calls vs. how many
puts are about to expire that week.
Say QQQQ is trading at 42, and
there's 10 puts for every 5 calls go-
ing up to 43, 44, and 45, there's a good chance of a sizeable rally in expira-
tion week, however, if there's for example 10 calls for every 5 puts that are
going to expire that week, going from 40, 41, 42 QQQQ, there might be a
bearish slump that
week. This indicator
works 70%- 80% of the
time, and can be very reli-
able.
Arms Index - (TRIN):
The TRIN is calculated: Arms Index = (# of advancing issues/# of de-

clining issues)/ (Total up volume/Total down volume). A value of less than
43
1 is bullish, of more than 1, bearish. This is a very unreliable random indi-
cator that has a 40-50% success rate. Avoid using this.
Extreme readings can be note able however but... this is more of a

longer-term reading. Not 100% reliable.
Bollinger Bands - Basically, it involves a stock or index reaching ex-

tremes if they touch the top or bottom band. Can be effective at times,
but a stock or index can ride either band for an uncomfortably long time
(60% accurate). To visualize the bands, go to Bigcharts.com and use set-
ting "Bollinger Bands." I’ve seen people really screw up with this analysis
big time, so AVOID.
Bull/Bear Ratio
This is excellent for finding extremes, at the tops or bottoms of the

market. Comparing historical readings (like 1998 NASDAQ bottom, year
2000 top) can provide eerily accurate results.
Essentially, tops are found when there are a noticeable excess of news-
letters writers that are bullish, and bottoms when the bears are in excess.
Excess can be 65% bears, 25% bulls, 10% neutral, or vice versa. Just com-
pare the bull bear ratios for every top and bottoms since the 70's in the
long-term charts that can be found at Bigcharts.com (custom setting), and
you'll notice how reliable it is. It's a very powerful indicator.
44
Japanese Candlesticks
Can have reliability during periods of high vola-

tility. The only forma-
tions I see that are
fairly
consistent, are the three black crows:

morning star
(bullish) (bearish): bullish and bearish en-

gulfer , and hanging man (bearish).
UPDATED: 2013:
The most powerful rever-
sal patterns that I’ve seen that’s worked in the past
few years since 2009 are the morning star, evening
star and rare gravestone doji. Morning star bottoms
have been VERY frequent since 2009, and the eve-
ning star followed by island reversal is equally as
frequent...I’ve actually seen them work, along with
my 5th wave bottom calls as much as 8 out of 10
times in the past few years.
45
Dow Theory
I hate to say it, but a watered down version of Elliott Wave. However,
the Dow theory influenced R.N. Elliott.
Update 2013: The transports in 2012 confirmed the bull market move
with an explosive upward 3...search stockcharts.com for $TRAN. This is a
DOW theory confirmation pattern.
Gann.  (secret = ( )..involves

structure of the pyramids (simple. Fibonacci!) Up-
date 2013: Have yet to make heads or tails of
this stuff!
MACD - during periods of high volatility, a

MACD that "crosses over" (from negative to
positive, to visualize go to bigcharts.com and use the setting "MACD") af-
ter a turnaround in stock or index, can be a strong confirmation. How-
ever, during low volatility, accuracy is 60%. A crossover is when the
MACD crosses from negative to
positive (over 0). To see it, go to
Bigcharts.com and use the setting
"MACD." Update 2013: I tried it
again, and it failed miserably over
and over...AVOID.
Moving Averages:
46
Typically bull markets rise above the 50 and 200 day MA. When the
two cross (intersect on the chart), it can signal a major turn in an index or
stock. It's bearish when a stock remains below either moving average for
an extended period. Stocks can find major support at the 50-day MA as it
rises. You'll notice this "phenomenon" consistently. A drop below the 50
day
MA, for a sustained period

can signal a reversal of an up-
trend, or vice versa.
Put Call ratio:
The most powerful P/C Ratio

measurement that I've found to be
extremely effective is the 21- day
moving average of the overall p/c ratio. a 21 day that's .80 or higher (pref-
erably .90-1.00) can signal a major bottom. This one measurement is one
big key in my bottom calls. All other P/C measurements I've found to be
far less effective.
Relative Strength Index
This is another one of my favorites that have proven to help guide my

Elliott Wave Analysis. It's simple. When gauging a bottom, look at the 3-5
year chart of an index or stock, and look at how low the RSI has went dur-
ing each major low. If the current RSI reading is near or below a major
47
low reading, it can signal a major bottom. It's a consistent indicator. In-
versely, it can signal a major top. Again, very effective.
Slow and Fast Stochastic
Fast is unreliable, at least to me, because it's too "noisy." A slow sto-
chastic that mirrors previous lows in an index, or at 0-20, can signal a ma-
jor bottom. Inversely, readings of 80-100 can warn of a major top in a
stock or index. Combined with RSI bottom readings, it can magnify "bot-
tom calling" frequency.
Channeling
During periods of huge volatility and elasticity, channeling can be ex-

tremely effective. I typically draw the channel from the way bottom of a
wave, to the top. If it breaks, it can signal a W2 or a corrective wave. But
during less volatile markets, the technique is far less effective.
48
The VIX
The VIX has been, in the past 3-4 years, a somewhat inconsistent indi-
cator after the high periods of volatility in 2000-2001. In 2001, the VIX
reached the highs of the crash of 1998, (in the mid to upper 40's, VIX)
and that was one indicator I used in Sept 2001.
However, volatility has been extremely low in the past 3-4 years, and an
indicator of 15-17 has "been enough" to qualify as extreme bearishness.
Is that a sign? Just recently from the October 2007 top, the VIX has
reached the mid 30's again after years of being in the upper teens MAX,
but typical readings that signal bottoms are in the 40's and higher.
Update 2013: The new VIX readings that signal tops and bottoms are
this: VIX under 12 = sell and VIX over 21-23 = buy. These are the new
bull market readings, and since I believe we’re in a brand new exponen-
tial 3rd wave pattern long term, these two numbers will be very reliable
for many years to come..
49
CHAPTER 5
Tools .
The Tools
Update 2013: Here’s what I use now....well for my trading AND web-
site.
Stockcharts.com:
Excellent, brilliant charting plat-
form. Everything I could possibly
need..I don’t even bother looking at
or using bigcharts anymore since Ap-
ple made my old software obsolete
with the Lion upgrade. Twist of fate, huh?
Skitch.com: This screen shot software allows me to post charts in de-

tail QUICK. The font and interface is very “dot com”, and I love the ease
of it.
You're all wondering what software I use, and what I websites or chan-
nels I frequent to help my trading every day, right? Maybe or maybe not,
but this is an eBook about my trading techniques, and it starts with those
very things.
50
"The Elliott Wave Principle" By Frost and Prechter
Yes, my mortal enemy Prechter's famous book "The Elliott Wave Prin-
ciple." Take note that Prechter did NOT invent Elliott Wave. It was R.N.
Elliott, and this is his work. Prechter does a good job recreating his work,
and his commentary is helpful, but it's a proven fact by Timer's Digest
that he's the bottom rung of all timer's they
document. But keep in mind that this book
changed my life, and I have to give credit
where credit is due. Thank you R.N. Elliott.
BTW you can pick up copies of this book on
eBay for about $12 w/ shipping.
Update 2013: My content has overwhelmed

poor Prechter SO MUCH that this book is
now offered on ebay for less than $5. It’s a great
book. but my book is EVEN BETTER LOL.
Bigcharts.com (Now using Stockcharts.com)
One of the most important products I use for charting software isn't
some crazy multi- technique charting software that does automatic Elliott
Wave counts (if you read the story about eSignal I seriously doubt you'd
want to use it) that costs $2000.00, or has auto Fibonacci targets and
costs $200 a month to stream useless data. The entire human element of
51
Elliott wave is thrown out the window, and you NEED that human ele-
ment since Elliott wave is more art than science.
The software I use is simple. It's Bigcharts.com. I used to trade with

Schwab back in the 90's and was able to acquire the software version of
Bigcharts until it was made obsolete. I was even able to get the Mac ver-
sion. So sorry, you guys can't buy this software. A decent alternative is
FreeStockCharts.com. It has live streaming charts, which can be very
helpful, but the amount of stuff that litters the charts is distracting.
Bigcharts gives you MACD, RSI,

Slow and Fast Stochastic, Earnings
Dates, 200 and 50 day MA, and a very
clean and simple chart that you can adjust accordingly.
I recommend using Bigcharts, and when counting and finding those

W2 zigzags, zoom into the 10 day, 1 minute charts using "close". You get
precise wave movements, PLUS it's real time, so you can see the waves
dance around just by reloading the website. It's easier with my obsolete
software, but it's still very helpful.
Briefing.com
Yes, I use Briefing.com to discover stocks that

are "on the move" and "hot". I discovered
trends in the housing stock before they bub-
bled, gold, Chinese Internet, cloud computing,
52
TASR the LASER and more. Pre-market they talk about a lot of
stocks, and if you see a stock or sector that is frequently mentioned, make
sure you keep tabs on it, especially if it's an emerging tech stock. There
are new Wave 3 techs that I didn't discover until scanning through
Briefing.com. But after the pre-market, it's mostly gibberish =)
Update 2013: I don’t know what the heck happened to this service.
They have a dellusional pricing and are no longer available on Yahoo Fi-
nance. I need to dig to find things now..sucks bad. 
Mad Money Lightning Round
You're wondering with the amount of times I've insulted poor Cramer
why I'd even mention this. But I have to. Yes, I'm a big fan of Mad Money
and when Cramer goes into a bullish rant it makes me giggle with glee.
But the meat of the show is the Lightning Round, at least to me. Just sit
there behind CNBC one of these nights at 6PM ET and look at long-term
3-5 year charts on Bigcharts of the stocks that are mentioned. I'm pretty
darn sure that the stocks mentioned are pre- determined, but they do a
good job of choosing obscure stocks that could turn into Wave 3's. It also
gives a good run down on what's the latest hot stock.
Update 2013: when the market is hot I cling onto his bullishness...I
just wish one day he’d go from super boring format to a more exciting
one ..like soon...
53
CNBC
Self-explanatory. Where would we be without it? Everything that's hot

is mentioned within seconds of the stocks moving, and you can see the
live futures quotes for the SPX NASDAQ and DJI, as well as gold and oil
quotes. Pre-market is soooo key. You can see pre-market quotes of what's
moving, and you could discover stuff that
you'd never seen before JUST because it's
hot. A good amount of the time, stocks that
are mentioned are entering 3rd waves, so
this is a good way to scan for 3rd wave
stocks. Keep it on all day.
Update 2013: Here’s what I do..I watch the

numbers and tickers and breaking head-
lines on CNBC, but I completely have the
volume turned down to ZERO lol..why? Because I like to make fun of
them because most of the analysts are “not smart at all”
54
Stocktwits
I know people know that I despise Howard Lindzon, the guy in charge
at Stocktwits, and most of the time it's people promoting their website or
services, but if you want to know right away what's going on with a stock
you're holding, just register and type in the symbol. Within seconds
you'll know right away what's going on.
Update 2013: I don’t even look anymore..it’s turned into some wild
wild west pump and dump thing. Blech.
Ya- hoo Fi-

nance
Mes- sage
Boards
The
king of all the
financial mes-
sage boards,
period. The negative, however is you get shorts exaggerating things, or
longs exaggerating things, but if you want to know the time earnings is
coming out for a stock, or the latest rumors or gossip about a company,
check it out. People have gone to jail on those boards for false statements,
so exaggerating has leveled off in the past couple years. Don Wolanchuk's
Silicon Investor Message Board "Ask Da Chief"
55
My mentor Don is still there to this day spitting out his weird gibber-
ish. His handle is "da_chief". But if you can figure out what he's saying
he helps a LOT. I'm on that board myself
with occasional comments, but follow-
ers on that board have pretty crucial infor-
mation that they dig through every day,
and I read every half hour of the trading
day.
E-Trade
Yes, they almost went bankrupt once, but the Power E*TRADE plat-
form is unreal. Streaming everything. CNBC live. My executions are bet-
ter on E-Trade vs. Schwab and the customer support is top notch.
Schwab support is real anal and stiff and Iprefer chatting with E-Trade
customer support. Just please don't go bankrupt on me!
56
Update Dec 2013: Didn’t go bankrupt lol yay!
57
CHAPTER 6
The Stocks I Trade.
Update: 2013: I will detail it in further chapters, but my new four horse-
man aren’t companies at all. AT ALL. Well, if you count UPRO as a triple
leverage of 500 different companies in the S&P...I trade that SPXU to
short, TQQQ for NDX 100 and SQQQ triple short. All of them are triple
ETF’s..
If you look at tech charts going back decades, like MSFT and IBM,
you'll notice something. For a long, long time techs can grow and grow,
and GROW Exponentially. That's the power of tech stocks. They have po-
tential to expand for a long time and there's no limit to how far technol-
ogy can go.
large caps typically have strong volume and smooth wave movements
on their charts. Also, if you want to go short, to the downside there's
smooth wave movements. Your 3rd waves happen with gaps in these
stocks in either direction. They can move so powerfully and swiftly to the
upside, like AAPL and GOOG, that trading them on margin is a no
brainer. It's the sexiest sector and a sector that I understand, I embrace it
every day, and buy the products, I know also, fundamentallywhen a tech
58
is losing steam or gaining steam. For example, when Apple came out with
the iPhone, it was automatic that RIMM was going to suffer. And this is
fundamentally and not with Elliott Wave.
Armed with this knowledge, you can know when to ride a 3rd wave or
when a 3rd wave could fail. It's pretty much the easiest sector with the
fast growth to understand, at least for me. Why buy McDonald's or Wal-
Mart and pray they go up. Yes you understand food, but technology has
potential for infinite growth. Yes, Warren Buffet trades stocks that "he
knows", but he doesn't know jack about 
technology.
Why NOT penny stocks?
If you like committing suicide, trade penny stocks on the long side.
There's NO volume and NO discernible
wave counts in any penny stock. You're
guessing and praying basically. Why
would people do this? Because either
they think they're at the right end of a
pump and dump, have very little capi-
tal or got duped into it by a newslet-
ter. Go ahead, I dare you. Enter your e-
mail address into one of those penny stock websites and come back to
me and tell me you made money. I seriously doubt you will. When you
59
have no idea where a stock is going fundamentally or technically, you
could get into serious trouble. Yes, that’s Timothy Sykes.
Why NOT gold stocks currently?
Ever seen the 1-year chart of either a NEM or GG? These stocks don't
go straight up or down, they go up and down, sideways and all around,
yes, the trend could be up, but trading them is a real bitch and a half.
They follow the metal, period, and when you think you can hold onto
them, you can't. GLD would be a better choice if you were getting into
gold, but the stocks themselves? A
real pain in the butt. In '02 it was a
lot easier to trade gold since they went
straight up without zigging and zag-
ging, but these days, it's rough.
Again, just take a look at the charts.
I'd be up all night with these guys, like
not sleeping at all even with the up-
trend.
Update 2013: Gold has corrected in a HUGE way, but pretty close to 5
waves down..as of Dec 11 2013, it could be near a 5th wave bottom, but
not before touching 900-980 if .618 X W1 + W3..
60
Why ETF's?
ETF's are amazing. You're basically trading one sector in a neat and
tidy package, with VOLUME. The best ETF's to trade, personally for me
are TNA and TZA for starters. It's like trading options and they will NOT
expire. TNA
is triple
long if
you're bet-
ting on the
upside for
the over-
all market.
TZA is the
opposite
and triple
short. The
trading like
options thing and NOT expiring is very key for me. Time decay is brutal
when you're trying to trade options, and a stock like TNA on the long
side not only won't suffer from time decay, but won't expire like options.
Also, when you're in a bullish or bearish 3rd wave and none of the stocks
you've scanned through have 3rd waves (like all my favorite techs which
happens frequently) you basically jump aboard a TNA or TZA. If you hate
61
the weird sideways motion of gold stocks, but want to be in gold, GLD is
a great vehicle to trade as well.
I've traded it on occasion long or short. If you want to be more conser-

vative on the trade but want to make a tidy profit, the QQQQ, SPY or
DIA are good options. They're basically the non-triple short or long in-
dex stocks, they've been around a while, and they follow their respective
indices very closely.
Update 2013: As mentioned earlier in this chapter...TQQQ SQQQ

UPRO and SPXU triple leverage index ETF’s..
62
CHAPTER 7
The Zigzag W2 And

Cup And Handle.
Anyway, Here are the two basic key formations we will be talking a lot
about.  
“W3” or Wave 3 is the powerful formation that forms after a W2 zigzag or
cup and handle complete. Typically it travels 1.618 X the length of the
first wave 80% of the time, or 2.618 that length 20% of the time
.....What Is A Third Wave? 

Oh the beautiful and third wave. 3rd waves are when everybody just
starts to identify a trend and rides it all the way up. Literally "just starts
to identify". In short term trading the 3rd waves are typically those gap
up rallies that trade near the highs all-day and close at the highs. You
know, the morning you wake up and you see the NASDAQ Futures up
like 25, SPX Futures up 15 and DJI Futures up 120 when you turn on
CNBC in the morning. They may or may not be gap up rallies, but can
also slow sustained long upward moves. It's Wave 1, Wave 2 zigzag or
round bottom followed by Wave THREEEEEEEEEE!!! 
But in my trading, I'm going for the gap up 3rd wave. "Going for" is the
key phrase. You don't get greedy and try to ride the entire 3rd wave up.
3rd waves are NOT ALWAYS gap up rallies. But if you see a move up that
63
barely retraces, like very minimal corrections, you could go long and "try"
to ride the 3rd wave up. I would consider myself a very conservative
trader because I almost never try to ride a complete third wave. If get one
of those huge gap upward 3rd waves the next morning after the initial en-
try, I'd be a seller intraday typically. 
The 3rd wave in my setup typically would occur after "the pattern”
(which will be detailed later in this video W1, W2 zigzag or rounded cup
and handle bottom, followed by a break of . 618, .786 or 1.00 to the up-
side). How far can a 3rd wave go? Multiply the W1, or first wave by 1.618
(the golden ratio), add the number to the bottom of the W2 zigzag, and
there's the Wave 3 distance, or length. This happens very frequently, but
my goal is NOT to ride the entire thing up, because that can be suicide.
I'm happy with a percentage move in every pattern break setup. Yes, just a
percentage and not a HUGE percentage, unless again, I get the big gap
up three. 2.618 is the distance after 1.618, but it only happens 2 times out
of 10..do not be greedy and think that a 3rd wave can extend to 2.618 if
you have profit at 1.618 X W1. Your chances of getting are possible but
very slim. 2.618 does happen, but do not rely on it. 
What percentage makes me happy? Well, if you've been following my
work, 7 times out of 10 I'm hitting "singles" or the 1% (or 2% on margin)
profits. 3 out of the 10 times I'd hit the home run and ride a bulk of the
3rd wave up, or I'd get a huge gap up and the entire 3rd wave falls in my
lap. 
But I'm content hitting singles in long streaks, simply because it adds up,
and adds up, and adds up. Mark McGwire didn't hit a home run in every
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at bat, although it seemed like it. He'd hit singles and doubles and the
home runs would fall in his lap. That's what I consider hitting the hom-
erun in a trade. Most of the time you won't know unless you wake up
with huge gap up futures in the morning and it's a pretty obvious move.
It falls in your lap.
Zigzags form in an “ABC” pattern.

A wave is the first wave down, B wave retraces . 618 of the A wave drop,
and C wave is typically equal in length to Wave A. 80% trade setup on
.786 breakout. 
After 5 waves down or an ABC zigzag pattern, the .786 breakout occurs if
the rally off the low retraces .786 X length of corrective wave to the up-
side.
Best trades are the Wave 1, Wave 2, Wave 3 pattern. W1 followed by a

correctiveW2 that holds .618 of the distance from the low of W1 to the
high of W1 followed by a W2 move the retraces .786 of the entire W1 sets
up a W3 which is an 80% trade setup
65
The setup involves finding and identifying the magical 3rd wave move,
and is a pattern that occurs frequentl. Finding them is the key. I call this
formation "the pattern" or W1, W2, W3 or "2 before a 3.” I’ve run off
HUGE profitable streaks based on this one pattern alone. So keep this in
mind. 
It’s like a machine gun/Joe DiMaggio approach. I’d buy this pattern over
and over again, grabbing “singles” (2%) before eventually hitting a gap up
home run of 10% (or 5% non-margin). It was so successful in 2003-2004
that my frequent trades, which were profitable 80%-85% of the time, re-
sulted in a real net profit of 1776%. Yes, I turned an account valued at
around $2025.00 in Feb of 2003 into around $45,000.00 by the summer
of 2004. I will explain in detail how I did it later in this video.
66
Here’s how it works...it’s essentially
the most ANAL and safest way to
safely buy into a 3rd wave.
BUT..you need to have confidence
that. 
1.) The first was is a REAL first
wave. 
2.) The W2 retraces near .618 in an
ABC A = C zigzag formation.
3.) You don’t buy .618, maybe .786, but definitely 1.00 as detailed. If
you feel the market is about to swell early in the morning, .618 entry is
ok..but if it’s wishy washy in that area, try .786 where I usually buy..or be
“safe” buy actually getting into the full breakout.
3rd waves form because Wave 2 is like a slingshot...it’s pulled way back
to try to break the low of W1, but when it doesn’t and it’s weak, the smart
bears cover and the greedy bears run for the hills. It gets congested in
that .786-1.00 area, and panic covering kicks off the 3.
Like magic it works 80% of the time since I perfected it.
I will now show you examples and details about the two big Wave 2 for-
mations and will start with the zigzag.
ZigZag after Wave 1 

Notice that the A wave is equal to the C wave precisely, or approximately.
67
Typically the zigzag will NOT be that much longer than the A wave. If the
C wave is much longer than the A wave, it's no longer a zigzag, and I will
NOT trade it to the long side. Also the zigzag MUST be less than or equal
to .618 in length of the W1 in the retracement W2. If it's longer than (.
618 X W1) to the downside, I typically avoid it. 
So now that we've identified the W1, and W2 zigzag, at what point to we
buy it? Like I wrote in the history section of this book, I used to buy right
at the .618 Fibonacci retracement level and ride the 3rd wave up. 
This strategy, for me at least, is obsolete, and I avoid doing this com-
pletely. Many of my biggest trading blunders have been trying to antici-
pate a .618 retracement, and buying there, only to see it drop much fur-
ther than I think in a downward 3 , a move that is much longer than a C
wave would go (A = C to .618). You could place stops in percentages be-
low the .618 Fibonacci retracement level, but what's the point? If you
catch a 3rd wave up, you'd miss just a fraction of it if you trade the way I
would trade it these days.
Here's how I would trade it "these days", after the Wave 1 and Wave 2
zigzag to . 618, I'd wait for the reaction rally. The point that I would buy a
stock, ETF or index is right at the .618, .786 or 1.00 pattern break. The saf-
est bet is to buy at the 1.00 retracement.
So what is this retracement? Basically it's the distance from the top of
Wave 1 to the bottom of Wave 2 x .618, .786 or 1.00. In the AAPL exam-
ple, the top of Wave 1 to the bottom of Wave 2 was 35 points (85 - 50 = 35)
I'd take that 35 points and multiply that by .618, and the result is around
68
22 points. 
After that I'd add that 22 points to 50, and my buy price would be right at
72 in a bullish overall market. That's the 3rd safest level to trade. The sec-
ond safest level would be right at 77.50 or .786 X 35 pts. If the SPX
NASDAQ and DJI are trading at the highs near the close and the stock is
at this .786 retracement level, I'd buy in anticipation of a 3rd wave. But
the safest level to buy by far is obviously right at 1.00, or the very top of
the Wave 1, right at 85. 
This is where I'd typically buy and hold in a 3rd wave attempt. We would
have completed the Wave 1, a Wave 2 zigzag 
to .618 and the breakout to higher highs, above the Wave 1. 
That was my first setup, the W2 zigzag followed by a .618, .786 or 1.00
move that retraces the top of W1 to the bottom of W2. My other setup in-
volves the "cup and handle" or a "rounded bottom" Wave 2.
They occur frequently enough to keep you on your toes during the
day, but you have to find them and confirm that they're the real thing. In
bull markets they happen very frequently, like in the RMBS SINA SOHU
and NTES trades I made in the bullish Wave 3 in 2003. 
Here are 5 chart examples of the POWER of the 80% trade setup on
longer term charts. As you can see many of my 1.618 targets hit after this
1-2-3 and .786 breakout formation formed.
69
In the AAPL example, the top of Wave 1 to the bottom of Wave 2 was
35 points (85 - 50 = 35) I'd take that 35
points and multiply that by .618, and the result is around 22 points.
After that I'd add that 22 points to 50, and my buy price would be
right at 72 in a bullish overall market. That's the 3rd safest level to trade.
The second safest level
would be right at 77.50 or
.786 X 35 pts. If the SPX
NASDAQ and DJI are trad-
ing at the highs near
the close and the stock is
at this .786 retracement
level, I'd buy in anticipa-
tion of a 3rd wave. But
the safest level to buy

by far is  obviously
right at 1.00, or the very top
of the Wave 1, right at 85.
This is where I'd typically buy and hold in a 3rd wave attempt. We
would have completed the Wave 1, a Wave 2 zigzag to .618 and the break-
out to higher highs, above the Wave 1.
70
That was my first setup, the W2 zigzag followed by a .618, .786 or 1.00
move that retraces the top of W1 to the bottom of W2. My other setup in-
volves the "cup and handle" or a "rounded bottom" Wave 2. Yes, I only
trade these TWO formations.
They occur frequently enough to keep you on your toes during the
day, but you have to find them and confirm that they're the real thing. In
bull markets they happen very frequently, like in the RMBS SINA SOHU
and NTES trades I made in the bullish Wave 3 in 2003.
In the chart in the next page I detail the "cup and handle" or
"rounded bottom" Wave 2 in the BRCM chart from several years back.
Here it is:
Notice the drop from 30 to 17 didn't occur in a zigzag Wave 2 forma-

tion. It formed a rounded "cup" followed by a small "handle" (the drop
from the breakout point at 31 back to 27) and finally the 3rd wave move
up to 50. This formation occurs less frequently than zigzags, and when I
71
see it, it's more powerful than a zigzag when the 3rd wave breakout oc-
curs. Notice that it held .618 fibonacci support and broke all 3 fibonacci
retracement levels of . 618, .786 and 1.00. Many of my chinese internet
trades had this rounded Wave 2 formation, and they typically occur more
frequently in long term 3rd waves (in the major indices)
On October 8, 2013, S&P had peaked at 1730 and was correcting in a

zigzag..it was threatening to get the full C to the downside. It had just
formed an A Wave from 1730 to 1675, an upward B wave to 1695. Al-

though it fell short of a full . 618 typical B wave retracement, it was the
only logical move at the time since the C wave started to form abruptly af-
ter breaking down. Identifying this zigzag bottom formation was helped
by a VIX that was spiking. VIX got right near that level when SPX Eventu-
72
ally bottomed on this chart at 1646. It was easy to identify because of how
high that VIX was spiking at the time.
Here’s the result of the ABC “1640” zigzag bottom call on the S&P. As
you can see the S&P got right near the 1640 A = C low and found sup-
port near it at 1646. It was a powerful zigzag and reversal formation that
took out .786 near 1710 after completing it, and the result is what you’re
seeing. Zigzags are very common corrective patterns, and the 80% trade
setup would be the “SPX breaks .786 and buy UPRO when it happens”
setup move.
73
SINA’s chart had a perfect Wave 1, Wave 2 Flat, and Wave 3 (in green).
Pretty simple chart to analyze because the pattern is so clear cut. The flat
held .618 fibonacci support and rallied back over the pattern break level
of 35, setting up a pure upward three. Basically 1.618 X w1 was 54-55 and
it not only hit it, but made it all the way up to as high as 100-120 recently!
74
Another pure upward 3 breakout in WFMI (now WFM). Area in grey
was a subdivided Wave 1, area in yellow was a pure W2 zigzag, and WFMI
broke above 24 to setup the upward 3. I stated “Best case scenario for
WFMI: The area in green is a W3..it would target as high as 41-42 if 1.618
X W1 in grey...” and..”probability: 80% chance it’s in the best case sce-
nario..” Turns out, not only did WFMI hit 41-42, it exceeded that target in
a 2.618 Wave 3 move to as high as 68 before correcting in a flat 2. As you
can see, the Wave 3 pattern break, if you can see it is successful 80% of
the time!
On BIDU’s 5 year chart (pretty wild chart I might add), it formed a W1

from the IPO from 48 to 427. It than corrected in a large zigzag W2 that
held .786 support at around 100. One large ABC zigzag type move. After
bottoming at 100, it rallied all the way back to break 427 by 10/19/09. I
saw this move as a clear cut Wave 3 type pattern break move. It was sim-
ple, again. If BIDU would travel 1.618 the distance of W1 from 100, it
75
would travel to as high as 700-720 in a Wave 3. Within the year, BIDU
rocketed to 700-720 (on the way splitting ten for one which made it 70-
72), hitting my target, and than SURPASSED it by a huge amount hitting
1500+ (or 150 post split). This could be a “3 from heaven” that has trav-
elled at least 2.618 X W1. It’s beautiful when these 3rd waves surpass my
targets obviously. You’re making twice as much on my calls!
This chart for CRM was a bit of a stretch to count because the area in
green as detailed in the chart, or the Wave 2 was a very
very tiny retracement. But since it appeared that the area in yellow was
a 5 wave pattern up and the area in green was somewhat of a flat correc-
tive wave in a wave 2, I could say that the area in blue would end up be-
ing that 3rd wave. Turns out I was right. I stated an 80% probability that
CRM would travel to as high as 145-150 in an upward 3 (best case sce-
nario for CRM) and turns out just recently it rallied to as high as 160, ful-
76
filling my full upward three target! It was sideways for a while but turned
up all the way to the full upward 3
This the chart of the forex EUR/USD from April 26, 2013. As you can
see there’s the
ABC Zig- zag pattern
which had poten-
tial for the 80%
trade setup from
1.321 to 1.298..if
had found A =
C support and ral-
lied, and I said that
if the EUR/USD
ended up taking
out 1.321, the
result would be a
“potential 3” to 1.37. What I learned about Forex is that zigzags and 80%
breakout trade setups at .786 to 1.00 are lethal. They breakout so fast on
this particular pattern and are
easy to spot with the liquidity that currencies can provide.
77
As you can see on this chart from December 06, 2013, EUR/USD
broke above .786 after the ABC zigzag formation and spiked...it did take
another dive to retest the previous C wave low, but held and eventually
rocketed to my 1.37 target!
On this 5 year chart from

the “Top 20 Tech” PDF
from way back at August 25
2010, NTES had bottomed
at the low of 15, and rallied in
the Wave 1 move to 47. The peak at 47 represented the 1.00 breakout
level after it started the big zigzag ABC correction right to 27. A wave was
78
47 to 32, and the C wave was approximately equal to C after dropping
from the top of the B which retraced .618 from 42. Pretty easy pattern to
see...NTES had just rallied off that 27 low and was approaching .786 ..the
80% trade setup formation..so calling a 1.618 Wave 4 to 78-80 was an easy
no brainer.  
As you can see on the chart from that August 20, 2010, the call to 78-
80 was spot on. That was 1.618 of the first wave and it just recently hit my
78-
80
tar-
get.
It
did
get
a
79
Wave 3 to 65 and dropped dramatically back to 37.5, but the “wind be-
hind the sails” was the zigzag 3rd wave breakout, and nature took over..
On this chart of AMZN from the August 10, 2010 “Top 20 Tech PDF”
file, AMZN had hit a low and bottomed out at 38, and had formed a big
impulsive upward 1-2-3-4-5 to 150 before finally correcting in a zigzag
with a small C...the C was approximately .618 of the A, which you don’t
see to often. But after the Wave 2 zigzag there’s a Wave 3 which was set-
ting up on this chart. I gave it a 70% that it would be 250-260 in a full
1.618 W3, and even though it was just starting to reverse after this rarely
seen zigzag formation with a .618 of A Wave C, it had the pure 80% trade
setup formation.
As you can see in this chart, AMZN did break above .786 and 1.00 to
form the big Wave 3 1.618 move. Turns out there was yet another big
80
round cup and handle formation the dropped int from 244 to 168, but it
found another .786 and 1.00 breakout formation to finally hit the 250-260
range 2 years after my 3rd wave breakout call. Wave 1, Wave 2, break of .
786 and 1.00, Kaboom..like clockwork. Today it’s well over that level and
near 2.618 actually, but I’m content sitting on a 1.618 Wave 3 profit in
full.
On the AAPL chart from the “Top 40 Stocks” from October 22, 2009,
AAPL had formed a pretty big and nasty zigzag with A dropping from
197 to 118, a fake me out B wave that rallied all the way back to 193,
which also doubled as a fake me out .786 break before correcting back to
77 in a full C. On this chart I saw a the big zigzag, and the fact that it was
within striking distance of 1.00 I made a bold call to many, but for me,
routine. I called a 1.618 Wave 3 move and gave it an 80% chance to hit
400. It was pretty obvious to me and a no brainer that that 3rd wave
would form.
81
On this AAPL chart that shows the next couple years, it wasn’t an easy
Wave 3 to ride. The fact that “flash crash” dropped it to 193, didn’t make
it easy to swallow...but the forces of nature took over, and eventual
pushed it back into the wave 3 1.618 move and by Sept 2011, the target of
400 was met, and a year later hit as high as 700..I honestly didn’t see any-
thing that resembled 2.618 at the time, and you have to avoid thinking
that each 3rd wave would hit 2.618. The chances of 2.618 are equivalent
to the percentage of losses I take every year (20 percent)
82
On JOYG’s (Now JOY) “Top 40 stocks PDF” chart posted on Oct 22,
2009, there was another beautiful cup and handle..you could call it a zig-
zag too, but the fact of the matter was that was clearly in a W2, before
Wave 3 formation. It did the cup thing from 42 to 30, and did the handle
thing from 42 to 35...the first wave was 15 to 42, so the fact that it had just
broke 1.00 to the upside was the telltale sign that a full 1.618 Wave 3 was
going to form. I gave it an 80% chance of hitting that 75 target for this
very reason.
83
Another not so easy to hold or swallow Wave 3 pattern in JOYG...it did
breakout and traveled to 58, but it took a very long time to finally develop.
Traders would have gave up, but the long term share holders and company
share holders who held during that 1 year ordeal were eventually rewarded
with the full 1.618 Wave 3 move..as you can see, it did the corrective side-
ways flat thing and spiked to 75 on November 2011..
Now....check this out!
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Here’s a big big tip about spotting zigzags..this is kinda of a secret, but
since you bought this video/DVD I really need to point it out. It’s real im-
portant.
Basically.. An “A Wave” in a zigzag is 5 waves down, followed by a B

wave up which is 3 waves....being able to figure out if the next move after
the B wave is a Wave 3 down which can be costly (this will be described
on video/disc #3). Getting hit by a W3 down and trying to bottom fish a
zigzag is a really bad idea..UNLESS the following criteria develops..
If the zigzag is sizable and does NOT occur on a gap down or deep
fade C, and you can see an impulse forming on the C wave that’s pretty
obvious, you need to see this...make sure you know that A wave and B
wave are out of the way and pay close attention to what happens to the C
wave...if within the 1 minute chart you see a W1 down, followed by a .618
W2 up, a W3 down that’s exactly 1.618 X W1, and a W4 up that’s pre-
cisely .382, it’s actually ok to bottom fish a zigzag..
If after the wave 4 that’s PRECISELY .382 up you get a standard 5th
wave (there are 3 common 5th waves) that’s .618 X W1 + W3 down, W1 =
W5, or truncation, within the C wave, AND it’s equal length to the A
wave, get excited..
This formation within the 80% trade setup doubles as a 90%

setup..even 100%..it’s extremely powerful,
85
You see, getting 5 waves down and seeing them perfect, and A = C is
one of the best trades you can get to on my website..the deeper the better
though and it MUST hold .618 support..not .786 or 1.00, but .618.
You can actually dive in that formation and try to get in as low as
possible...the best 5th waves are NOT the truncation that holds the W3
low, but either W1 = W5 or .618 X W1 + W3...
Oh and the most LETHAL of the zigzag 5 wave down setup is

this...spotting an ending diagonal within the 5th wave of the C wave...
86
Don’t worry, if you’re a subscriber you won’t have to guess ..I’ll see it,
and alert you guys of it..
87
CHAPTER 8
The Cup And Handle
Now onto the other formation..the cup and handle! This formation is
more frequent on longer term charts and less likely seen on the intraday
or 30 day charts, so keep that in mind. 
This formation occurs less frequently than zigzags, and when I see it, it's
more powerful than a zigzag when the 3rd wave breakout occurs.
Basically it’s w1, W2 is a big rounded looking cup and not your typical
ABC A = C zigzag as detailed earlier in this video. The cup drops in a W2,
but slowly and roundly goes sideways and starts to slope up. Typically the
cup formation terminates at the top of the first wave followed by the
handle..this would also represent Wave 1, Wave 2, W3 off of the 1.00
breakout of the cup, thus forming “the handle”. The reaction is typically
crazy and typically when I see it it gets the full 1.618 treatment.Now onto
the other formation..the cup and handle! This formation is more fre-
88
quent on longer term charts and less likely seen on the intraday or 30 day
charts, so keep that in mind. 
This formation occurs less frequently than zigzags, and when I see it,
it's more powerful than a zigzag when the 3rd wave breakout occurs.
Basically it’s w1, W2 is a big rounded looking cup and not your typical ABC A
= C zigzag as detailed earlier in this video. The cup drops in a W2, but slowly and
roundly goes sideways and starts to slope up. Typically the cup formation termi-
nates at the top of the first wave followed by the handle..this would also represent
Wave 1, Wave 2, W3 off of the 1.00 breakout of the cup, thus forming “the han-
dle”. The reaction is typically crazy and typically when I see it it gets the full 1.618
treatment.
89
On this “Top 20 Tech PDF” chart from August 25, 2010, there was a pretty
massive and round cup and handle Wave 2 formation that formed here, followed
by a huge breakaway gap 3..that gap Wave 3 is the dream of an 80% Trade setup
formation..I love getting big gaps on the .786 breakout of this move, and in this
case, I called an easy 550 target and said there was a 75% chance of it happening.
It clearly was a 3 based on the huge volume island upside gap, so calling a 5 or any
fifth wave scenario was there just to fill space =)
As you can see after the big round cup and breakaway gap upward 3 move on
PCLN, it got a very tiny handle and KABOOM of it went. Within 2 years PCLN
ended up hitting my 550 target in that big upward 3, but the magnitude of that is-
land upward 3 gap was so huge that it actually hit 1100+ recently.
90
This is a chart again from the “Top 20 Tech PDF” filed from August 25, 2010.
This is EBAY’s big cup and handle W2 formation after the first wave from 10 to
28. It had just started to round out as is typical of a cup and handle Wave 2 and
had just started to reverse...but this formation I saw had the cup formed already,
and due to the wind behind our sails with the overall market with NASDAQ and
SPX forming W3’s, that 45-47, or 1.618 of W1 was in place. It wasn’t THAT obvi-
ous at the time, but I liked that rounding cup and handle...
91
EBAY ended up breaking above .786 and 1.00 and forming the 3rd wave, but
not after getting to those crucial breakout levels and essentially being dead money
in a very sideways pattern for a full year...it finally eventually did hit my 45-47 tar-
get within the next 2 years...a 3rd wave is a 3rd wave, so when you trade it, keep in
mind that a sideways move isn’t a VERY bad thing, but can be annoying if you’re
patiently waiting for that big profitable full 1.618 X W1 Wave 3 move.
92
On this AKAM chart from the “Top 40 Stocks PDF” dated and posted Oct 22,
2009, you can see a rounded cup and handle formation, but it could also be de-
scribed as a zigzag..but the bounce off the zigzag was very slow and round which
is even better..it just broke the .786 upside level near 22 and was sitting at 21.50. I
saw this as at least a 70% breakout pattern and drew a 1.618 Wave 4 target of 38-
40 based on this high probability setup...
93
The result was a long sideways but gradual “grinding 3rd wave” pattern that
took it to my 38-40 target within 2 years for AKAM. It went the grinding route for
a while before finally decided to spike in a huge way to that big 38-40 1.618 Wave
3 move. It did eventual far surpass 38-40 in a 2.618 move off the Wave 2 low, but
that 2.618 move is rare and only happens 2 out of every 10 3rd wave moves..do
NOT rely on getting 2.618 on every trade. Think conservatively about getting
1.618 and NEVER 2.618 and you’ll be ok =)
94
I spent the entire 2005-2007 period talking down and despising oil stock in gen-
eral, and I really hated SLB, so this came as a surprise to see that I had done a
rare non biased bullish chart on this company. Funny huh. Anyway, I did this spe-
cific chart because it had a beautiful cup and handle W2 formation and had just
broke into the big 3. Wave 1 was 35 to 64, Wave 2 was a big rounded cup and han-
dle back to 47 and 1.00 broke over 64 setting up the 1.618 Wave 3 80% trade
setup formation. It had just started the Wave 3 move, and I drew the 95-100 tar-
geted based on the 29 point move from 35 as the Wave 1 (1.618 X W1 = W3). No
brainer based on the beauty of the rounded cup. (The handle was 63 to 57 by the
way)
Those are the TWO formations that I key on. Zigzag and Cup And Handle
W2.
95
These are the two I frequently see when I setup the 80% trade. Either it’s A =
]
C ABC zigzag that bottoms at that level and reverses above .786 of that particular
corrective move, or the big round cup and handle W2 formation that also breaks
above .786 and 1.00 setting up the big 1.618 Wave 3 move.
96
CHAPTER 9
The Key Elliott Wave

Patterns. Basics.
The Main KEY Elliott Wave Patterns You Need To Know - (Fast forward if
you already know or already read this)
The 5 Wave Pattern 

Impulse waves move up 5 waves (if bullish), followed by a 3-wave correc-
tion, from my expe-
rience typically in a
zigzag form. What
R.N. Elli- ott (or Bob
Prechter, who didn't cre-
ate the Elliott Wave
Theory, but merely re-
discovered it)
fails to mention are the gap down rounded bottom W2's with no 3-wave
formation. They take the form of a "U" shape and are the most desirable
W2 formation. Fast, simple. The cup and handle after the first wave. 
97
Wave 1 
The first wave up or down in a new trend...usually I measure how far this
wave goes, wait for the wave 2, and from there, it gets easier as to how far
the next move up or down goes.
.618 Wave 2’s 

The most frequent W2 formations I've seen, that work, are the ABC zig-
zag (3 wave descending pattern), cup and handle, and the ascending trian-
gle. Rarely if ever are flats seen in a Wave 2. One big thing to note is that
in the past 5-6 years I've studied Elliott Wave, rarely if ever have I seen
W1 extensions or 5th wave extensions. 3rd wave extensions are the most
frequent, and are seen from my experience 80%-90% of the time. Calling
a W1 extension can be "hazardous." W5 extensions typically occur in
stock market bubbles, and when they terminate, the corrective wave fol-
lowing it can be very nasty, in a fast violent W2 type move..
Wave 3 or W3
The most powerful wave of a down or up move...usually this wave

measures 1.618 X the length of Wave 1, and at times, 2X, 2.618X ..1.618
happens most frequently after a W2 low..80% of the time, but the 2.618 va-
riety around 20% of time..Note: DO NOT rely on 2.618 has a possible
pattern..always think conservatively and accept 1.618.
.382 Upward W4 

The best way to stop a downtrend that has a clearly defined upward 2
98
and a clearly defined downward 3 that’s 1.618 X W1, is to get a retrace-
ment that moves .382 the distance of the downward 3. This is a W4. Typi-
cally if it hits that .382 number on the nose, and does not exceed it by a
large margin, the weakest wave, the 5th wave would be last part of the im-
pulse, before a large reversal. 
Wave 5 
W5!s almost ceased to exist to the upside in the past few years, but occur
very frequently these days to the downside. W5!s occur on this formation:
W1, W2 = .618 of W1 up, W3 = 1.618 of W1 down, W4 = .382 of down-
ward 3, and W5 -> Doesn’t hit the low of the 3 and retraces above the 4
(truncation), W1 equals W5 measured from top of W4, or .618 X W1 +
W3 from the top of the
W4 that was .382.
Truncation 
Pay special attention to the truncation. A truncation involves a 5th wave
hitting the precise top of the 3rd wave and correcting violently in a W2, if
not the start of a new downward impulse. 5th wave truncations to the up-
side are extremely dangerous and have been the downfall of my (infre-
quent) losses. This one formation is why I try to and stress avoiding the
dreaded "4-5". A 4-5 looks like the 3rd wave, and can be very tempting. In-
versely, a downside 5th wave truncation can be the catalyst for a very
swift reversal to the upside.
99
Diagonal Triangles 
This is an-
other very
impor-
tant for-
mation,
and can
be very
haz- ard-
ous if
you're long or short. This one formation has been the cornerstone for my
of my major bottom calls. Bottoms DO NOT end with quick violent
bursts. They form an ABCDE ending diagonal triangle on low volume,
with a slow whimper, when it completes the reversal can be massive. In-
versely an upside leading diagonal can be the catalyst of a major crash.
Flats 
Flats typically occur
in the W4 of an im-
pulse formation,
rarely if ever in the
W2 position. Flats
can be mis- leading be-
cause they can also be
a trigger for a 5th
wave truncation. The
100
danger of a 5th wave is what keeps me from trading 4-5's, only when I
feel the most fearless (which isn't a good thing.) I have never seen an ex-
panded flat myself; Fibonacci is the best measuring stick when a forma-
tion gets "sloppy".
Zigzags will have their own section in this book, they are very impor-
tant in Wave 2 formations, as is the Cup And Handle which will be ex-
plained in heavy detail in later chapters..
101
C H A P T E R 10
Now Breathe.
You may think, oh wow...I’m gonna make millions! MILLIONS! Slow

down and breath. The toughest part of 1-2-3 patterns is identifying the
W2, and trusting the W2, and finally having faith that there’s enough con-
gestion at 1.00 to cause an eruptive W3 that travels 1.618 length...
Here are the problems you may run into:
1.) The first wave is not a first wave and just a 4 up before 5 down..or
worst... upward 2 before downward 3. It’s not easy to spot and if you
aren’t experienced like I am, you may find yourselves chasing after B’s
and 2’s without 3’s...layman’s terms: You touch these you’re fucked.
2.) You get impatient and chase a shallow W2, or the market has
evolved quickly and likes to trick you into chasing every shallow 2...you
HAVE to be
current with state of elliott wave ever year, month or second. In order
to have this kind of information, keeping current with the “evolvers” is im-
portant.
102
Yours truly is by far your best option (ME!). I’ve seen this pattern
evolve repeatedly over the years, and just because you think 1-2-3 and
1.00 is “voila”, think again.
3.) You may run into an upward ABC...the downward B wave can be
tricky and the breakout way too shallow..imagine believing in a 3rd wave
and it’s a C wave or worst yet..a DOUBLE B wave at .618. 

Sounds complicated? To me? NO. To you, if you’re an impatient beginner,
yeah.
Solution: Whenever you can as a new member, please remember pa-

tience is important and chasing is death. My guidance on
Wavegenius.com is essentially second to none. I’ve executed or made sig-
nals on thousands of trades over the years, and I always pick my
spots....Sticking with me and my very experienced and talent members
and being involved in the elliott wave community (not many 80%- 90%
traders..wait, I’m tlhe ONLY ONE.)
103
I have many lifetime members for a reason. That cannot LIVE WITH-
OUT ME!
Here are the important points for members:
1.) Be patient, always. These setups typically occur once every 2-5 days,
and I will sit on the sidelines and not blindly chase things..gaps and
spikes and exciting moves like that are great, but when you don’t have a
2nd wave into a 3rd wave, where do you get in and where do you get out?
It’s tough being blind and I didn’t create a signal.
2.) I will try my best to ride the full 1.618 3rd wave until at least 90% of
it is completed...remember...do NOT get buyer’s remorse if you see an-
other 1-2 points of upside. Buying at the peak of the 3 is not smart, and
expecting a 1 in 5 2.618 move is delusion. Yes, it seems like magic, but it’s
not if you’re stuck at the top of the 3 and staring down a huge cliff.
3.) Do NOT anticipate a breakout and buy...my numbers and stop lev-
els are there for a reason..there are times when I but the stop at .618
breakout..typically I do this if the B wave is about to be breached. I can
also do .786 of the C wave, 1.00 of the C wave, top of the B, .786 of the A
+ C in a zigzag or just flat out 1.00 of the entire move. I’ve seen many
times where my stop is .10 able the high of the day and doesn’t
trigger...truncation 5th wave and WHAM if you anticipated it you’re deep
in the hole. I will place stops ABOVE 1.00’s for a reason. And don’t ques-
tion it if you want to be 80% profitable.
104
4.) Remember also..this is an art form, and NOT a science. Do not
overthink, anticipate or get impatient. I know people in this business
who make 30-50 trades a day chasing .02, and I call that “crack head” trad-
ing. What I do has been perfected for over 15 years now. FIFTEEN
YEARS.
105
C H A P T E R 11
About Fibonacci.
About Fibonacci 
You notice on the internet, way too many "elliotticians" who "think too
hard" and
"label too hard". This is a brain going to the extreme logical side. If
you heard
of Glen Neely, he hasn't im-

proved on elliott wave (which
he's trying to make people
believe)..he butchers it...Many
of these Neely disciples spend
hours on one chart labeling them
with fancy characters, x y and z, and garbage that strays way from R.N. El-
liott's approach. Typically they dress up these charts to look complicated
to make themselves "look good"..in reality it's just a pile of horse
manure...also...$2000 software makes complications 100 X worse.
106
"The best" software will spit out as many as 8 different counts, which
will confuse you, and even make you want to quit. How do I know this? I
was a victim of this software, AND those XYZ people in 2001. I went to
an Esignal seminar back in early 2001 (as mentioned in an earlier chap-
ter) when I was learning the elliott wave...the software labeled the April
2001 drop a "W2"... this one error created by a
machine caused one of my worst trading

mistakes ...EVER.
Note: Elliott wave is also an art form. When

you get to XYZ and $2000 software, you've
lost your soul to logic. Visualizing the
wave....software doesn't have human
eyes to visualize it, and will have the "a-ha" mo-
ment. Here's the point I'm getting at. You'll al-
sonotice people "splitting up" fibonacci num-
bers into smallerfractals, and even using fibonacci that's not even close to
golden ratio. What I'm stressing about fibonacci is this, when it's com-
bined with elliott wave. Stick with the golden ratio. Don't divide it up.
From my vast experience, 50% is non-existent. Don't even bother looking
for them. .236, almost never happens. .786 went from a working ratio to
almost obsolete number. Those numbers are "the impatient fibonacci
numbers". Traders that "want to trade" so they're "wiling to accept these
numbers." Don't even bother. What you look for is purity. The golden ra-
tio. These are
107
the numbers. 1.00, .618, .382, 1.618, 2.618. .786
When I've followed the pure fibonacci fractals, I can find the most de-
finitive moves in each wave.That's it. You thought it was more than that
didn't you? When you see the purity, things start to open up...big time...
Like clear spirals from the sky. You see it. That's the wave count. Once
you see it, you see the patterns....or in my case "THE" pattern.
Update 2013: These numbers are important, but the biggie these days
had now become the good old .786 upside break. I key off this .786 level
after completed ABC zigzags to setup 80% trade setups on my website. To
the downside I only rely on .618 support but not .786, so keep that in
mind...
Here's what everybody wants to know. How do I predict bottoms at the

exact day? 
Or how "did I"... I was messing around with my favorite charting soft-
ware. Bigcharts. It's the only website based charting software I've ever
needed and it's free. I decided to analyze all the major bottoms since the
70's. Including 1974. And I started noticing something. The spirals were
very distinct. When I "candle-ized" them, my eyes widened. Fibonacci
was everywhere! I started counted from major bottoms to tops. I noticed
that each bottom to top was between 55 or 89 fibonacci days, and if you
blew it up, 55 or 89 fibonacci months!
108
It only look one time for me to see this. I spent the entire night look-
ing at all the instances of this from the bottom of 74 to 
present. It happened repeatedly. It was so mind blowing to me..I started
to also notice fibonacci #34 appeared during short corrections. Those
were the 3 numbers that worked. 34, 55, 89. 13 and 21 was very "lazy",
and 144 could be split up into 55 and 89. Since this discovery, I noticed a
more frequent occurrence of 55 and 89. 55 has been happening very
frequently in the past 5-6 years. 

However, there's a big catch. You have to
be able to spot when the 5 wave forma-
tions complete up or down, or the when
the zigzags complete up or down. Fibo-
nacci doesn't work by itself. Combined
with elliott wave is where you get the 
accuracy. It's no secret to me about 55 and
89. But it's tough for others to spot it
when they can't find where 5 waves up or down, or the zizgags complete.
I hate having excess garbage information to carry around. I love to nar-
row things down to 1 or 2.To me, 1 or 2 is 55 and 89, and .618 and .382.
Two MAJOR forms 
of technical analysis also come into play or came into play in each of my
major bottom calls...Slow stochastic at bottom readings, and the RSI at
109
bottom readings...take those two, add high put call ratios and an ending
diagonal...and wham...you've seen and you've predicted a bottom!
Wanna see something really cool? This is crazy.
In 1933 the truncated 5th wave low was 50.16. 

In 1973 the high was 1051.7...so what, right? 
Divide 1051.7 by 50.16, you get 20.97..don’t forget that number.. 1974 low
low was 577.60..multiply that by 20.97 
What do you get? 12,110.48 
2000 high was 11,723...now think. 
The lowest of the low in 1933 shot up 20.97 X to 1051.7 in 1973
The lowest of the low in 1974 was 577.60..multiplied by 20.97 you get
12,110.48...
See the parallel? I’m sure you do, and I’m sure you’re shocked.
Now if the low of the DOW was 6480 approximately, multiply that by
20.97 you get 135,885.6
Will life parallel and will we see 135,886 in 3 decades or so?
What or who would cause this sudden change in human awareness

like the 60’s?
110
Note: each number started close to 5 or 6, and the multiple is almost
21, a fibonacci number.
Bizarro huh? That’s the world I live in..
Along with 1111, 777 and 666...don’t ask lol
111
C H A P T E R 12
Trading Time Frames.
Here ’s a pretty important chapter...time frames intraday...I use these

time frames to gauge how far I want to hold my positions...these are
pretty important so read carefully..
9:30AM 
The obvious time frame is of importance. Again the stock you bought
could be at the very peak at 9:30AM. Intraday highs are set right at the
open, and if you see a large fade, try to grab the profit ASAP if you have
it. Typically if it’s 1% (or 2% on margin) by 9:30-9:32AM ET I’d grab it if I
begin to see the slightest fade from the highs. 
10:00AM “Big Guy Buy Time” 
If a stock you bought survived the 9:30-9:59AM and is right at the highs
set in that frame, there’s a good chance it’ll sustain past 11:00AM and
into 1:00PM ET. I’d say 60/40 if this occurs. The big buying can occur at
this time, and economic reports are released right at this time. It can get
dramatic right at
10:00AM ET.
112
10:30AM “Wavegenius sell time” 
If I’ve held from the previous day up to 10:30AM and the stock is at the
high, I sell right at 10:30AM and wait for a new setup. Why 10:30AM?
Stocks can survive a sell off up to 10:30AM MAX typically. The very peak
occurs frequently at 10:30AM, and I usually like to sell right at this time.
If it’s survived 9:30-10:30, I’m out.
1 PM-2:30PM “Big Guy Sell Time” 

I’m sure you already know about this time frame, but it seems like 7
times out of 10 the big guys start the big selling programs at this time. It
could be because they want to go to lunch, have meetings or whatever,
but for some bizarre reason it just seems to happen frequently. If I’ve
held into 12:59PM, I’d sell right before 1:00PM hits. If the market or stock
you own can survive this time frame, you could be sitting pretty into...
3:05 PM “Big Guy Decision Time”
This is when I usually buy. Not at 3:00PM but 3:05. It just seems to
work in the all the years I’ve been trading. 3:00PM the big guys could un-
leash a fury on the market with major sell or buy programs, I usually wait
until the last second like I would on EBay when I’m bidding on some-
thing I want. I want the stock, but only if it closes at the highs in this
time frame
UPDATE 2013: NEW TIME FRAME -
113
3:35PM can also be very important these days, because big bullish ral-
lies have evaporated on the “big dumb guy with a lot of money” lurking
in the shadows...keep in mind that this one period from 3:35-4PM can
provide THE MOST volatile wave patterns in such a small time frame.
I’ve seen 10-20 S&P fades from this period and placing strategic stops
near .618 to contain your profit or minimize losses is key.
Here’s a biggie time frame to note: FED MEETINGS.
Trading Fed Meetings 

I know people who ONLY trade during fed meetings and the rate an-
nouncement reaction. It could be highly profitable, yes, but if you’re
wrong it could be dramatic. The move can be huge. What happens be-
tween 2:15-3:05PM after the rate move is announced is pure insanity. 
The indices are VERY wild during this fifty-minute period, and it’s not a
good idea to jump in during this specific time frame. My strategy is to
wait until exactly 3:06PM ET when the waves settle down. If the indices
are trading at the highs, it would setup an upward Wave 3, and I’d go
long. But if at 3:06PM ET it’s trading near the lows, I would avoid the mar-
ket altogether. Typically everything settles down by that time, but I feel
more comfortable trading long side only. If a fed meeting reaction is to
the upside and it’s off a 3rd wave pattern break, it could potentially be a
powerful and high percentage trade.
114
Also something big to note...is knowing the seasonal monthly patterns
every year...it’s not an exact science, but strangely enough it works very
frequently...here are the best and worst months to trade:
Monthly Time Frames
Important Seasonal Time Frame - October to April 

The strongest time of the year starts in the middle of October and ends
around April to May. It’s been proven historically that the market outper-
forms the May to September time frame. It’s “sell in May and go away.”
My worst trading months have been in the summer in the past decade
and my best trading months the winter. Typically a large percentage of my
gains have come in October to December. Why? If the market is “up” for
the year in
October, there’s an upward bias as a result of “window dressing.”
The big funds want to show a great performance for at least that quar-
ter and will buy the best stocks, typically tech leaders, to pump their port-
folios and show their clients that they’ve been holding the leaders, and
the appearance that it was for the entire year. The leaders can REALLY
move big time in this time period, and even buying dips can prove to be
profitable.
The Best Months Of The Year 

The best time to trade, if you’re going to pick a couple months during the
year is middle of October, November and December. Again, the window
115
dressing phenomenon helps boost stocks in this period, if the market
was up for the year headed into October. 
My huge QCOM trades in 1999, for example, were buoyed by the window
dressing effect, and trading during this period can be almost mindless.
There are times when you could simply wait until earnings come out in
October, and pick the best stocks with the best earnings during that
month, and hold until Jan of next year.
The Worst Months Of The Year 

August, September and the beginning of October are bad. 9/11 occurred
during September, the crash of 1987 in September-October, the crash of
1929, September to October, crash of
2008, began August to October, I’m
not saying “go short” in August and
cover in the middle of October. That’s
not my style since I’m a short- term swing
trader. But it doesn’t get easier during
these months. The phenomenon: “closing
of the books” for the big funds occur in
October, so they “have to” sell.
116
My Worst Month Of The Year..only for the big momentum names...
January. The most dreaded month for me. Most of my biggest losses have
occurred in January and NOT in August, September and October. Why?
Because of tax selling. The leaders are pushed heavily into the last day of
December, and when the first day of the New Year arrives, it’s sell-sell-sell
the leaders. They’ve pushed them as far as 
they can go, and will sell in January simply because “they” don’t want to
pay taxes for the previous year in that year. I’ve seen rallies last into the
middle of January, and when the earnings come out, it’s sell-sell-sell on
the earnings results regardless of how good the reports might be
117
C H A P T E R 13
“The Wind Behind My

Sails...”
Before you try to enter these 80% trade setups with zigzags and cup and
handle W2 breakouts if you have to understand this ONE big key thing.
Accept the fact that we’re in a true bull market, and accept the trend
and follow it.
If you’re one of those permabears who can’t accept it, and spend half
your time losing money trying to scalp shorts on the upside, this is NOT
for you.
Those elliott wave traders will consistently lose money fighting a pow-
erful uptrend because.
1.) We’ve entered a 3rd wave as of Dec 09, 2013...not just a 3rd wave,
but the EPICENTER of a 3rd wave move..ala the “3 of 3”...if you don’t
know what a 3 of 3 is, essentially it’s the most powerful move in an elliott
wave sequence, and will guarantee cause faces to ripped off and pessimis-
tic permabears who can’t see the clear uptrend jump out of 40 story build-
ings.
2.) The fact is...the trend is a clear 3rd wave..the perma bears who re-
fuse to accept the fact that they are completely wrong and will continue
118
to be wrong, will keep shorting thinking that one day he’ll wake up with
a big crash in the market. These guys also think that every corrective
wave is the start of a crash, and at BEST they will make maybe 5 S&P
points on a small corrective zigzag..but the fact is 60% of the time they
won’t realize it’s just a minor correction and will usually get squeezed
over and over again. Your scalping attempts will continue to fail, and fight-
ing a huge uptrend will make it worse.
3.) These elliott wave traders are also loyal and blind followers of Rob-
ert Prechter, and will continue to act on command from this very danger-
ous man...last count Mr. Prechter has told his followers to “triple leverage
short” with a very high stop from what I heard 6 times in the past 2
years...each time that so called triple leveraged short position is stopped
out with a very large loss. Based on triple leverage short positions on the
119
S&P futures, that’s basically a complete wipe out. He is a very dangerous
man, so keep that in mind. I’ve
had many new subscribers who have told me stories of the money the
lost following that him, and I tell them that I can help them in a big way.
I had some long time subscribers who told me they had regained every-
thing they had lost with Prechter simply following my signals.
Here’s one reason why my trades and signals are 80% profitable
consistently...I know the trend. And I’ve made some pretty amazing elliott
wave calls in the past few years including this one.
This is epitome of “wind behind my sails” confidence...In Jan 2012, I

saw a huge 80% trade setup forming on the FIVE YEAR chart of the S&P
DOW and NASDAQ...I called DOW 20,718, NASDAQ 4900 and S&P
2215...note...S&P was just 1355 at the time.
The fact that I knew this 3rd wave would form based on my extensive
experience trading the “80% trade setup”, is why I don’t get scared of any
corrections no matter how fast or deep it is...I know that in bull markets
the dip is always bought...and 3rd waves form regularly in either a “3rd
wave grinder”...which is a slow gradual rise after a large gap up move..or
simply a LARGE GAP UP move. “The trend is your friend” so when your
friend is very knowledgeable and very bullish, you fear nothing basically.
120
(on my youtube.com/gemxwave channel search for DOW 20,715 and
you will find it located there with exact youtube time stamp from that
date)
This video was posted the on my 36th birthday Jan 26, 2012 on
Youtube...”..DOW 20,715, SPX 2215, NASDAQ 4900” “The crash on on
the Europe crisis..perfect wave 2...zigzag...every time you get W1, W2, and
W3 pattern break.. I’ve been right 85% of the time when I call a 3rd wave
pattern break..if you see me calling a 3rd wave and you’re short be care-
ful... the 3rd wave happens so frequently..this is just a no brainer to me
that it’s a 3rd wave setup..if we take out 2887 on NASDAQ...target would
be as high as 4900..no doubt about it...looks like cup and handle move
[SPX]..pure 3rd wave setup...highest target would be 2215 and we will
take out the all time highs shortly...i believe this will be a very long 3rd
wave...this is the most bullish formation you can get...[DOW] target
would be 20,715...this chart is so bullish it’s not even funny...this is the
pattern break that every time i seen this 85% it develops and extends to
the full 3rd wave target...and hits my targets..i know it sounds like a joke
to you because 99% of elliotticians are bearish..I’m pretty sure that the
higher ups know about me, but the general public..they have not grasped
the Wavegenius yet..could be a melt up for the next 15 years"
Here’s what I called:
SPX was just 1355 at the time, but to me, it was a very exciting
EUREKA moment yet again...
121
My favorite W1, W2 into huge upward 3 pattern which works 80% of
the time was forming.
But this time on the FIVE YEAR CHART.
On the “DOW 20,715, SPX 2251, NASDAQ 4800 Long Term” video
from Jan 2012, I had spotted this MASSIVE upward 3 pattern setup and
stated that if the .786 or upside 1.00 fibonacci retracement break, we
could see a huge move from SPX 1355 to 2251.
People that I was completely bonkers...to top it off I said there was an
EIGHTY percent chance it was going to happen.
Basically, this W1, W2, W3 pattern and .786 breakout setup is that ex-
act setup I use all the time to make my trades on 2 day or 10 day charts.
Whenever I see this confirmed setup, I pretty much go nuts. MANY of
my subscribers know this and whenever these numbers and letters pop
up they pretty much get very excited.
Here’s the criteria.
1.) The first wave is simply 1-2-3-4-5 with the 3 being 1.618, 4 at .382
and 5 the typical of the 3 target fibonacci moves.
2.) The second wave MUST be a zigzag where the A wave is equal to
the C wave, and the upward B travels .618 of the downward A.
122
3.) The breakout into the W3, that would follow would NEED to re-
trace at least .786 of the entire downward zigzag.
4.) Based on the momentum alone, I would decide to make an entry at

either a .618 retracement, .786 or 1.00 retracement...it’s usually one of
those 3.
5.) Place a stop a hair above the .786 level to buy, and WHAM-O...good
profit, large profit or VERY large profit.....
So in this video, this crazy 3rd wave 80% pattern was developing on a
LONG term 5 year chart as opposed to 2 or 10 day chart which makes it
WAY more potent a move.
With the confidence and precision that I have, I boldly called those 3
targets of the DOW SPX and NASDAQ.
As of November 2013, the SPX has travelled from the breakout pattern
of 1355 to the recent high of 1808, and on it’s way to the 2251 minimum
1.618 target as described in that video.
But the funny thing, that could be just the start...you see, 2251 in SPX
is a 1.618 minimum.
Over the years since the beginning of the last century, every long term
major 3rd wave has been 1.618 X the percentage of gain of W1.
Based on this calculation my target would not be just 2251, on

TheStreet.com article that was written about me in March of 2013, but as
high as 3565!
123
124
C H A P T E R 14
Wavegenius In Action.
Want to see this setup at work? My personal E-Trade options account

originally went from $2540 to over $45,000 in 19 months trading this con-
sistent pattern..also despite it being an options account, I was JUST
TRADING STOCKS ON MARGIN...also know that we just at the time in
2003 broke in to clear 3rd wave after a big zigzag W2 during the start of
the Iraq war helped a lot..
How? Faith in my October 2002 bottom call and my March 2013 Zig-
zag W2 bottom call...
125
The chart you’re seeing is another reason I had faith in my 2002 bot-
tom call, and another reason why I stayed on the long side of the trade
from this dead period to 2004. After we rallied off the low with a W1, the
W2 zigzag
formed, and I
was calling for
a 1277 W2 bot-
tom low. It
happened
to touch
1252, bottom
in a zigzag W2
and break
above 1502 setting the 3rd wave. This 3rd wave I rode to the max, and
combined with my newly discovered and polished “W1, W2, W3” pattern
setup, I loaded up and traded dead tech stocks..the 2100 target I called
soon emerged. BTW This chart is SO retro to me and takes me back. Ah,
Santa Monica, California how I miss you
126
You are about to see actual real trades that I’ve executed with this pat-
tern... the embryonic beginning of the frequent 80% 1-2-3 and .786 break-
out setup at work that I invented. This is an extreme case however, but ex-
treme cases do happen...$2540 into close to $45,000 between Jan 28,

2003 to August of 2004. There’s a lot of detail so pay close attention to my
method at work.
Keep in mind, that during this era in early 2003, we were just 3
months off the low set in October 2002, every major high flyer was deci-
mated beyond decimated. Imagine buying AAPL during this time for just
$11! This chart was part of the actual October 2002 bottom call chart I
made for the NASDAQ.
Yes, way back in 2002 I called the actual NASDAQ bottom within 25
points of
127
the actual low...it hit 1100 and I called 1075. The fact that I believed in
it strongly is what kept the wind behind my sails for years..
You are now seeing my Jan 29th '03 to Feb 28 ‘03 miracle RMBS trades
along with the early entry into the former penny stock that was the chi-
nese internet stock sensation, SOHU. The massive $7 to $17 spike that
occurred in a matter of days in RMBS is the main reason why this tiny ac-
count rocketed from $2540 to $5998 in this 1 month period. It wasn’t
one lucky “company got acquired” triple...there were a 21 skillfully made
trades that one of my longtime members Calcareer described as “..one of
most brilliantly executed series of trades I’ve ever seen. I’m surprised Ted
hasn’t come out to bow...”
What happened was, the 1-2-3 pattern break setup that I was tweaking
in 2002 became lethal. I mean VERY lethal. You can’t see it on this chart,
but RMBS formed this pattern 5-7 times in this 5 day period, and each
time I hit the button on every .786 break I could. The spike was definitely
tradable..you just had to wait for the W2 and .786 pattern break repeat-
edly until it was milked dry. I also made a strong AMAT trade during this
period and discovered the chinese internet stocks before they were all
about to rocket exponentially until end of 2003.
128
Now..back to the “about to grow exponentially chinese internets..” That
first
innocent trade in SOHU was the start of a MONSTER series of trades

that I executed magnificently over 2003. I used to watch CNBC during
the start of it and see some pretty massive percentage gains in these tiny
techs from China.
SOHU NTES and SINA. But, SOHU seemed to have it all...incredible

power, 1-2-3 patterns and quick recoveries and new highs...it was my fa-
vorite as you can see in this Google Doc. These are the actual trades I exe-
cuted on the three chinese horsemen. SOHU was the focus but I dabbled
in NTES and SINA..17 of the 19 trades in this sector were profitable, and
some of the were home runs. Again, it was the newly polished 1-2-3 pat-
tern break setup that did it.
129
Now what you are seeing is pretty funny...yes, those are ALL TASR
trades. Yes, TASER THE LASER. Remember this guy? Super mega cult
stock of 2004. I rode this bad boy over and over again in the first half of
2004. The
best thing about this stock was.. 

1.) Serious momentum and violent reversals with high percentage gains
daily.
2.) Every zigzag would occur near the close and 1.00 when it broke was
SUPER violent. I mean 9 times out of 10, a big W3 1.618 breakout on
every 1.00 move.
3.) Stupid fundamental news drove the stock. Tiny orders of Taser
equipment and even dumb articles on small websites filled with rumors
caused pre-market activity to explode..
130
4.) Every 1-2-3 pattern break setup worked to a tee...it was a no
brainer after every zigzag and 1.00 break...out of 17 trades, SIXTEEN
were profitable.
Better than an ATM machine.
My four horseman in 2003 were RMBS SOHU NTES and SINA..but in

2004, they were TASR, RIMM, ASKJ, SNDK and BRCM. I had some nice
trades in KKD and JNPR as well...bottom line was this...these stocks
were still pretty decimated by mid 2004 so the beta was extremely power-
ful. Even the worst stock in the planet RIMM was doing well at this time,
and I executed some powerful profits in that very stock.?
Crazy huh? Well...now that you know that...what am I buying and trad-
ing now?
131
C H A P T E R 15
What I’m Trading,

Stops, And What Not
What are my four horseman now? Um...these days I try to avoid trading
companies PERIOD. Why? 4 Letters. T-S-L-A.
You guys probably know why lol.
Reason I try avoid companies is because they are COMPANIES that

can’t avoid the pitfalls of that. For example, bad earnings, bad pre-
announcements,
fad stocks, bubble stocks, death of a CEO..or worst yet..accounting is-

sues...
I have found 4 stocks that I’m very comfortable with and they are NOT
companies. You probably know what they are already.
UPRO the triple long ETF for S&P, SPXU the triple short ETF for
S&P, TQQQ the triple long ETF for NASDAQ 100 and SQQQ the triple
short ETF for NASDAQ 100..
If you don’t what these are they are triple leverage ETF’s that are the
entire basket of those big indices..basically say S&P rallies 1% one day,
132
that very day UPRO would instead rally 3%..a triple parallel to the
S&P..now how great is that?
You won’t have those days where S&P would rally 2% and your stock
is down 1% and you’re angrily wondering out aloud why your stupid com-
pany stock is down during a huge up day..that’s happened a lot to me,
and trading triple ETF’s you avoid that stupid crap. You get the beta and
leverage of a serious tech momentum stock in and easy easy package to
trade. S&P goes up 1%, you’re up 3%....as simple as that and as powerful
as THAT.
One big question right now after all is said is this...can this technique
be applied to shorting inversely?
Yes, it can, but keep in mind the overall market trend MUST be clearly
down. Trying to short C waves or downside breaks is VERY difficult in
bull markets where we are now. It can
be tempting to do, and every time I’ve
been tempted a good 40% of the
time I’m wrong, or some stupid ran-
dom spike hits me and I cover. Trying
to use this technique to go for 5 or
10 SPX points is hardly worth doing.
This scalp method is very dangerous
and very stupid, yet there are people who like to try to short 5 waves up
or 1-2-3 down. 1-2-3 down CAN work, but at the 80% clip that you’ll be
used to seeing on the long side. It’s not even worth and effort and up to
133
half the time you’ll see some big random spike that will squeeze you and
in no time you’ll be one of the permabears that have lost their money.
My record is pretty bad doing it, so why not just avoid it altogether?
That’s what I try to do.
But if it is a confirmed bear market, what do I typically do in a bearish

wave? I wait patiently basically. I wait until I see that Wave 2, Wave 3 pat-
tern break setup to the upside before I’d reinitiate a position. But what if
the bearish wave is turning into a downward 3rd wave? This is when I’d
react. If there’s a clear cut W1 down, W2 zigzag up that finds resistance at
.618 retracement, followed by a break below the intraday low or W1, I’d
go short, but NEVER during the course of the day. I’d only do it at the
“big guy decision time” frame right at 3:05. When there’s a clear cut “in-
verse pattern break” W3 to the downside, I’d react to it, only if the bear-
ish wave has lasted 3-4 days minimum or JUST intraday for a day trade at
most..
As you guys should know, bullish waves are more frequent than bear-
ish waves — well, maybe not from late 2007 to early 2009, but in the past
couple years since the 2009 bottom, bullish moves are more frequent. An
alternate strategy would be to buy bearish ETF’s like SQQQ, SPXU or
FAZ and go for the big downward Wave 3 move. My history shorting isn’t
that good, I’m right maybe 60% of the time vs. 80% of the time trading on
the long side, but I’m working on improving that. I think it’s the mental
aspect of it. I really despise the act of shorting because it’s anti-American
(on my soap box).
134
About stops:
You may see on my website that I place “stop to buy” or “stop to

sell”....I place them on very key levels...so a .786 breakout would occur in-
traday after a zigzag, which is the 80% trade setup. A stop to buy is an or-
der that will fill should the stock or ETF surpass that level. If I place a
stop to buy at say 85.85 on UPRO and it’s 85.01, when it rises to that level
it will automatically fill to the upside.
The best thing about placing stops is the fact that you could just get
lunch for an hour or two, come back and see that your order has been
filled with a huge amount of new money in there...you don’t have to sit
there all day trying to place quick market orders and trying to trade like a
complete crackhead. I’’m a swing trader by style, so expect these trades to
last between 2-5 days, and 6-8 stop to buys that trigger on average over
the course of the month..
Better yet...out of those 6-8 trades, based on my trading history ONE

will be a loss, and not that bad because...I also place stop to SELL at ex-
act fibonacci levels.
I do NOT automatically place a stop to sell after filling a buy order...by

doing this you’re basically chickening out and not relying on elliott wave.
I used to
do this, and basically what would happen frequently should a trade go

down as opposed to up on the trigger, is this....I buy say TQQQ at 98, and
it automatically drops on me...say 2 points to 96...but it drops on a zigzag
135
formation or 1-2-3-4-5 down...I could see that formation developing and
if I had a stop to sell it would have triggered..I would have taken my loss
at 96 and moved on..but this is not how I work..I have a very very iron
gut not because of instinct but because of the science of elliott wave. I
would see that it dropped 1-2-3-4-5 down to 96, see the 4 up and 5 down
at .382, recognize the 5th wave fibonacci level and BOOM it reverse not
only above 98 what I paid, but to 102 or higher....
Keep in mind that not EVERY time my orders fill that there is auto-
matic spike and woo hoo everybody makes money. I’ve seen stop to buy
orders that trigger, and KABOOM down. But like I said based on my expe-
rience with elliott wave trading, I would prefer to recognized what correc-
tive formation is forming first before chickening out and selling.
What I’m telling you guys about stops is pretty important, because
what I said
in the past two paragraphs is exactly what I do should that ETF i

bought drop immediately after I buy it.
But..If could clearly see a MUCH bigger and more dangerous forma-
tion forming, and I could identify it as a mistake, I WILL place a stop to
sell based on downside fibonacci support..say a downside .618 fibonacci
support break.
You will also notice that I will choose fibonacci patterns to trigger
these stops on.
136
1.) .618 of the entire downside correction ..should the overall market
have a pretty obvious upside gap and rally and I want to get in quick.
2.) .786 of the entire downside correction...I do this this 80% of the
time because at .786 fibonacci level not only do you avoid the dreaded “2
up and 3 down at .618” but you also have peace of mind knowing that
.786 is very very close to 1.00 and to see .786 touch and reverse to the
downside is very rare.
3.) 1.00 of the entire downside correction...I will place a stop at 1.00
for this basic reason: I don’t trust the market like I should, but I want to
make money.
1.00 breakouts are almost as frequent as .786 breakout trades to me,

simply because it gives you a very high probability of a 3rd wave and
avoiding .618 and drop or .786 and drop..
4.) One big thing about my trading as well is this..I won’t place these
stops AT . 618 or .786 or 1.00..I will place this stop to buy UPRO or
TQQQ slightly above the trigger price..so say UPRO’s .786 breakout is
86.77...I will tack on another .10-15 on that order so I would actually
want to fill at 86.87 to 86.92 instead. That would be a stop that triggers on
an actual breakout as opposed to hitting .618 and .786 and getting your
ass handed to you on a downward 3..
Here’s a quick summary: 

-The pattern generally occurs and is very successful in bull markets or
137
clear upward impulses. 
-You basically wait for Wave 1 to complete and correct in a deep 2. Usu-
ally, short term it’ll be in the formation of an ABC zigzag were A = C and
B = .618
of the downward A. The deep 2 cannot exceed .618 support...same ap-

plies for cup and handles. 
-After the formation completes, you try to make an entry of .786 of the en-
tire downward zigzag or 1.00 to be conservative..earlier entry could be
.618 but that could be B up before C down.
The 3rd wave is typically big and travels 1.618 X the point gain of
Wave 1. Try to sell before 90% of the 1.618 is completed.
138
C H A P T E R 16
The 20% Failure Rate

And How To Deal.
What Do You Do If A Third Wave Pattern Break Fails? 
The escape trade 
I would consider this a very important section. Failure. The 3rd wave pat-
tern setup isn't an iron-clad occurrence that happens 100% of the time.
What happens if a 3rd wave pattern break fails? You need to have stops. I
typically have stops setup, mostly mental and Fibonacci stops if a 3rd
wave fails. 3rd wave pattern breaks again, do NOT work 100% of the time,
but around 80% of the time on average. 80% is pretty amazing, but for the
past 10 plus years
I've traded with Elliott Wave, on record, I've profited around 80% of
the time!. Anyway, there's 80% profitable, and the other 20% of the time
you're trying to escape the trade or minimize the damage in your ac-
count. This 20% of the time is when you really need to rely on Fibonacci
and Elliott Wave, and to have faith in the wave movements.
How do I try to prevent getting into that bad 20%? Basically, if I get a
W1, W2 zigzag pattern break, I'd buy at 1.00 retracement levels, a large
139
majority of the time when I see this setup. Why 1.00 and not .618 retrace-
ments or .786 retracement? Here's the problem with buying at .618 or
.786. Those two Fibonacci retracements are the EXACT level of an up-
ward wave 2. An upward wave 2 or corrective 2 typically retraces .618 but
will NOT exceed . 786, it can exceed .786, which is rare, but the furthest
at W2 could retrace is as far as 1.00.
I can name numerous times when I bought right at .786 retracement

and found myself buying at the very peak of the stocks that day, only to
get caught in a downward 3. It can be extremely irritating obviously, but
trading on close to 100% certainty, which is 1.00, can help lower that 20%
number. 
What happens if your 1.00 pattern break fails and the next day the stock
you bought gaps down? That's my worst nightmare, when you think
you're 80% certain and the next day the stocks gaps down at least 1%-2%
or more like 5%. What I would do is this, after a gap down, there's typi-
cally an upward 2 retracement that retraces .382 to .786 of the entire
drop. 8 times out of 10 (80% of the time) you'd get this upward 2. Once
you get an upward wave 2 that retraces that Fibonacci level, you place a
stop at the intraday low, just a hair under the intraday low.
You watch for an intraday move of five waves down on the stock and
look for that upward 2. Why a hair below the intraday low? That’s an IN-
VERSE PATTERN BREAK, the opposite of the pattern that I’ve been de-
scribing in this book. If the stock retraces .786 and does NOT break be-
low the intraday low, it could keep going and rally to higher highs, and
140
you'd have another chance at that 1% move or a 3rd wave in full. This is
the dream setup after what you think is a bad trade. The stock would
drop in a wave 2 zigzag, rally in an upward Wave 1, and not exceed the
intraday low. Another stop I place is the Fibonacci stop; that’s a .618 Fibo-
nacci stop. If it looks like that upward W2 simply isn't going to happen,
then I'd place a stop a fraction below the .618 Fibonacci support level.
I know that it could just be a W2, but if the stock goes straight down
to .618 without an upward 2 retracement, you'd need to get out. But if
there were already an upward retracement intraday, I would hold and
look for a real upward 2. Typically I'd place a .618 Fibonacci stop on large
gaps down that are ready to exceed that .618..
But when retracements occur, don't immerse yourself in fear right out
of the bat. Have faith in the Fibonacci Elliott wave movements. Remem-
ber that Wave 2's can retrace .618 of the Wave 1.. And after that retrace-
ment you could run right into a highly profitable upward 3. I wouldn't
fear a retracement unless it went straight down to .618 without an up-
ward B or upward 2 in a large gap down.
The three biggest blunders in elliott wave trading you need to avoid. 
. 
Buying into a the peak of a 1.618 W3 thinking there’s a chance of a rare
2.618 X W1
141
The biggest offender for me is this: 
You bought into a 3rd wave, and it’s near 1.618..ok great right? I didn’t
sell near 90% of the 1.618 move...and bought back near 90%...in my head
“hey this could be a 2.618 version..” RIGHT? WRONG. Why? Because
only TWENTY percent of the time does a 3rd wave hit 2.618
move...doing this is really stupid. When you see something going para-
bolic in a 1.618 Wave 3 pattern, just trade it up until you see the target
within 10% of hitting 1.618..after that just back off and wait for a 2..
Buy the bottom of the 4th wave in anticipation of a 5th wave up. 
This technique is HAZARDOUS. I’ve seen imbeciles on competing web-
sites praise the 4-5 wave approach. It looks pretty obvious, 3rd wave up,
4th wave down, and a 5th wave up, right? 
WRONG. The main reason it’s dangerous is the frequency of the 5th
wave truncation. If you’ve read my previous “Elliott Wave Secrets”
EBook, you’d know what it is. Basically, it’s a 5th wave that does NOT ex-
ceed the top of the 3rd wave. 
When this happens the reversal can be BRUTAL. I mean lose every
penny you
own brutal. Do NOT trade this strategy because I guarantee you’ll get
massacred. 
Buy a 3rd Wave Attempt Minutes Before A Company Reports 
One thing I need to really need to mention is this. Elliott Wave CANNOT
predict the reaction of a stock after it reports earnings. I rarely if ever buy
a stock even on a 3rd wave setup to anticipate an earnings move. This is
142
extremely dangerous, and the few times I’ve done it, I’ve gotten my butt
handed to me in a big way. No matter how great a formation looks our
how great a technical indicator appears, no form of technical analysis can
predict the direction or magnitude of an earnings reaction. NEVER buy a
stock and hold during an earnings report.
143
C H A P T E R 17
More Details About

Bottom Calling
This is an inside detailed look of how I was able to call 
All the major bottoms from 2009 to 2013 perfectly, and the secrets behin-
dactually finding these precise lows using the charts from 2007 to pre-
sent.
It’s not as complicated as it sounds..it’s a very simple concept actually
It’s simply finding 5 waves down and 3rd waves up and knowing the fi-
bonacci lengths of each of the 5 waves as well as spotting zigzags and re-
tracements to pinpoint the precise lows before a large reversal.
I’ve made some pretty amazing calls since 2009 

. 
To be honest it’s not actually a secret, but people need me and my 
“1 in a million” vision and artistic view of charts...it’s supposed to be a sci-
ence, but to be master elliott wave, you need to have the creative eyes of a
master artist as well as the precision of a surgeon.
BTW My dad is a doctor, his brother is a doctor, his son is a doctor,

and 5 of my mom’s sisters and brothers are all doctors..I happen to be
144
the most artistic of my entire family. I’ve written 17 songs, practically mas-
tered speed guitar at
the age of 18, and recently I’ve sold 3 works of abstract art for between
$440- $560 a piece on ebay. I don’t plan on focusing on art and music to
make money, but it could be a big factor with my life in the near future.
This is one reason why people subscribe in droves..ALSO they NEED

me to confirm or fully validate their elliott wave patterns because they
simply cannot see what I’m seeing or have the confidence like I have to
go through with their trades. This is the greatest benefit of my website
and this formula is how many of my subscribers have made high percent-
age gains over the years, and have run off streaks of trades like I have.
Knowing that the extremely experienced Ted The Wavegenius can vali-
date what you’re seeing in real time in the chat room or on video or
audio is a very very powerful tool in your trading arsenal.
. 
This November 2013 my profit accuracy has been 100%, and many of my
3rd wave calls, zigzag bottom calls which seemed nuts at the time actually
became true.
Now the history from 2006 to present. This historical perspective is

how I became very confident with these 80% to 90% pattern trade setups.
145
Obviously having a guy master elliott wave like this and being able to
communicate in real time is like I said, extremely powerful.
Near the 2006-2007 Peak I was not a likable person. I only had about
200 visits a day to my websites from 2000 visits day because I went from
hero in 2003-2005 to zero from 2005-2007.
My trading wasn’t bad. I just kept posting to my 10,000+ Myspace fol-

lowers that commodities, particularly oil was about to crash and remain
sideways for an extended period of time like way back in the 80’s. History
repeats itself, and I despised the house of cards market that was being
formed.
The fact that my not so intelligent ex-girlfriend got a $100K a year job
at real estate firm simply for how she looked took me to the brink.
I didn’t pinpoint the exact top of the market, but for a year I kept call-
ing a
bubble in the housing, commodity and oil markets on my crazy mys-

pace page....i knew it was going to crash.
When the 2007-2008 crash finally came and the entire market came
tumbling down in one of the worst recessions in history, I was validated,
but it didn’t matter..nobody gave a crap about me.
I stashed all my money away from the market from 2006-2008 pretty
much, but occasionally traded forex..i actually on record with real money
146
doubled my Forex.com account in one month in Nov 2008, but my main
subscriber website income was practically nill.
But in 2009 my business took a huge turn. Obama became president

and all my avenues of communication were mysteriously re-opened on
the internet..
I regained my confidence and in a huge eureka moment in Feb of 2009

on youtube, I saw something that nobody was talking about.
The crash in the indices were ALL near the .618 support levels from
the low of the 1974 crash to the peak of 2007.
It was amazing what I was seeing, and the fact that the SPX got a per-
fect upward .382 retracement W4 to 950 after the large crash downward 3
from the fall of 2008, confirmed what I was about to predict.
If you follow my analysis on Wavegenius.com, you will know that the

upward . 382 retracement after a 1.618 downward 3 or 2.618 downward 3
is how I’m able to spot major bottoms before huge reversals in the mar-
ket.
In fact I use the “1.618 W3 down, upward .382 to the precise w4 level
and W5 = W1, truncation or .618 x W1 + W3” pattern to trade short term
moves on 2 or 30 day charts.
The is one big secret that people tend to look over...if you were to use
this method or trade off of a confident pattern I’m seeing like this, 9
147
times out of 10 that I’ve spotted this pattern in the history of all my web-
site posts and
trades..a good, large or VERY large profit was made.
This is the exact pattern that from from the peak of 2007 to the bottom
in 2009. Wave 1 or W1 from the 2007 high was 1550 to 1250, upward 2
was .618 to 1450, the downward 3 was a little over 1.618 from 1450 to 750.
The key level that got me was the .382 retracement from 750 to
950...when I saw that, the “Eureka” moment set in.
Now the big question after that .382 upward 4 retracement to 950 was
this...which 5th wave would it end up being? W1 = W5, truncation or .618
X W1 + W3?
On the Feb 2009 “Major DOW Bottom Call” video on youtube and the
“Bottom Call Ending Diagonal video” that got a few thousand views over
the years combined (I usually get 300-400 views a day btw) I stated the fol-
lowing important points to be able to spot this bottom: (Just go on
youtube.com/ gemxwave and search those terms and you’ll find them on
my site)
1.) The DOW was near the precise .618 retracement level of the entire
move from the low of 1974 to the peak of 2007. Essentially calling the
lows of 1974 to 2007 W1 of W3. The crash wave had a 5 wave down ap-
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pearance of a full corrective W2...back to back bubbles in a row, crashes
and finally the DOW gave in and retraced that complete move.
2.) We got an upward 2 that was .618 of W1, which fit the criteria of
that pattern, into a downward crash 3.
3.) After the crash 3, the key wave pattern was the precise .382 retrace-
ment in an upward 4 before a 5 down. This is very important like I said,
and with intraday or 10 day swing trades, I use this exact setup to buy as
LOW as possible. People LOVE to buy low and sell high of course, and
discovery has benefited a lot of traders on my website since 2009.
5.) The 5th wave was either w1 = w5, truncation. .618 X W1 + W3 or

any of those 3 with an ending diagonal. As most people know I’ve made
some sick
mid-term bottom calls by spotting this rare and elusive formation.

When the ending diagonal occurs at the lowest of the low in a 5th wave,
combined with fibonacci, there’s an extremely powerful reversal, ala SPX
666 to SPX 1810 which we are seeing now.
6.) The last point was spotting the ending diagonal pattern, which is,
again very hard to see and spot in the bumpy ABCDE low volume
whimper..that’s what happened in 2009, and I got extremely excited when
it happened..
7.) Finally, right at W1 = W5 distance, i spotted that final “E” wave in

the ABCDE..and even called for DOW 6500, SPX 650-670 and NASDAQ
149
1250-1300...as you guys know I called these levels so close to what they
ended up being, that people freaked out, and the Wavegenius was re-
born. The big bottom was in, and it was up up and away.
These calls were caught on Youtube videos with the time stamped in
Feb 2009, and have been a mainstay of my business for years.
150
C H A P T E R 18
The Huge Jan 2012

Call.
Now I will fast forward 3 years later to “THE BIG BREAKOUT W3 of
2012”.
In late Jan of 2012, again on a youtube video, I had fought the odds
and again I made a very large call.
SPX was just 1355 at the time, but to me, it was a very exciting
EUREKA moment yet again...
My favorite W1, W2 into huge upward 3 pattern which works 80% of

the time was forming.
But this time on the FIVE YEAR CHART.
On the “DOW 20,715, SPX 2251, NASDAQ 4800 Long Term” video
from Jan 2012, I had spotted this MASSIVE upward 3 pattern setup and
stated that if the .786 or upside 1.00 fibonacci retracements break, we
could see a huge move from SPX 1355 to 2251.
People that I was completely bonkers...to top it off I said there was an
EIGHTY percent chance it was going to happen.
151
Basically, this W1, W2, W3 pattern and .786 breakout setup is that ex-
act setup I use all the time to make my trades on 2 day or 10 day charts.
Whenever I see this confirmed setup, I pretty much go nuts. MANY of
my subscribers know this and whenever these numbers and letters pop
up they pretty much get very excited.
Here’s the criteria.
1.) The first wave is simply 1-2-3-4-5 with the 3 being 1.618, 4 at .382
and 5 the typical of the 3 target fibonacci moves.
2.) The second wave MUST be a zigzag where the A wave is equal to
the C wave, and the upward B travels .618 of the downward A.
3.) The breakout into the W3, that would follow would NEED to re-
trace at least .786 of the entire downward zigzag.
4.) Based on the momentum alone, I would decide to make an entry at

either a .618 retracement, .786 or 1.00 retracement...it’s usually one of
those 3.
5.) Place a stop a hair above the .786 level to buy, and WHAM-O...good
profit, large profit or VERY large profit.....
So in this video, this crazy 3rd wave 80% pattern was developing on a
LONG term 5 year chart as opposed to 2 or 10 day chart which makes it
WAY more potent a move.
152
(Search youtube.com/gemxwave for search term 2215 and you’ll find
it)
With the confidence and precision that I have, I boldly called those 3
targets of the DOW SPX and NASDAQ.
As of November 2013, the SPX has travelled from the breakout pattern
of 1355 to the recent high of 1808, and on it’s way to the 2251 minimum
1.618 target as described in that video.
But the funny thing, that could be just the start...you see, 2251 in SPX
is a 1.618 minimum.
Over the years since the beginning of the last century, every long term
major 3rd wave has been 1.618 X the percentage of gain of W1.
Based on this calculation my target would not be just 2251, on

TheStreet.com article that was written about me in March of 2013, but as
high as 3565!
You can take THAT to the bank!
I hope you’ve learned a thing or two of what I can do, and as a sub-
scriber of Wavegenius.com, you’ll see some pretty amazing calls an fore-
casts that nobody
to date has been able to match. 

“The eyes of a master artist, and the precision of a surgeon” That pretty
much sums it up.
153
C H A P T E R 19
My “Sick” Bitcoin
Calls.
The Magical Bitcoin November 2013 With Wavegenius.com! This video
will detail my amazing calls on bitcoin for the month of Nov 2013. What
you are about to see is shocking, and absolutely jaw dropping. None of
these charts have been 
photo shopped and none of the posts have been faked. I 
even posted the “Massive W3 Bitcoin W3 500” call when it was a mere
274.50 on Techcrunch.com..it was an article about
“The bitcoin bubble” and I refuted it with the link to my chart. 

Gained a lot of followers since that post. It went from 274.50 to 500 to
705 and as of Nov 29, 2013, 1240!
154
The Bitcoin Nov 6th Techcrunch 500 Call - Proof Video.
It all started when the first big speculative bubble popped from 280-
ish to print low 50. I called a big zigzag bottom at 40-45 correctly, 
but little did I know that it would go from 50 to 280+ to 1240+. 
This is the chart I posted the night of Nov 6th on Techcrunch. 

I was chatting with some friends on Facebook and the bitcoin “bubble”
Techcrunch.com article popped up. I was "casually curious” about the

chart and that headline. When I saw the live chart, my jaw dropped. Like
REALLY dropped. Seeing bitcoin go from 274, crash to 50 and rocket to
freaking 274+ was pretty astonishing. I had little to no idea that this hap-
pened. The chart was showing my favorite elliott wave pattern of all time.
W1, W2, .786 break of W1 and W3 = 1.618 setup on a long term chart. By
chance I was witnessing the 1.00 breakout at the PERFECT time. The for-
mula pointed to a move from 274.50 to 490-500, and I was really excited
to see this. In layman’s terms, a full move above the previous high after a
bubble crashed equals a 3rd wave. 3rd Wave = MASSIVE move.
Later that night I posted this chart. Upon the 274.50 breakout move, I
saw within the pattern another 1-2-3 setup and 3rd wave breakout move.
Initial target before 490-500 I saw was 377 in a 1.618 W3..
155
I had two posts from my site Wavegenius.com on Nov 7 2013 stating
that if Bitcoin took out 315.5 or 321 and 1.00 it would hit 377 in a “nose-
bleed 1.618” move.
This is the result. Bitcoin ended up breaking both 315.5 and 321 and
hit 377 on the nose before correcting quickly. It was a simple 3rd wave
pattern setup, and easy to spot, at least for me.
After hitting 377, it got the W4 right to .382 and I called a W1 = W5

5th wave to 400, and a “belch” correction to 340.
As you can see on this archived Nov 29 bitcoincharts.com chart, it got

to 397, really close to my 400 target, and shortly after dropped to as low
as 345.
156
Basically, I called a 400 top before a correction to 340, and we got 397
and 345.
On this chart from Nov 9, 2013, shortly after it hit a short term peak of
397 I called the following: Zigzag support would be 280, and I was look-
157
ing for a break of 376 to setup 490-500. I was looking for 280 .618 support
because zigzags are typically the A = C formation, or test .618 support in
a typical corrective 2. After a 2 is a 3, and the 376 .786 breakout repre-
sented my typical 80% trade setup move.
On this archived chart from Nov 29, 2013 on Bitcoincharts.com you

can see the result. 290 held near .618 and bitcoin took out 376...setting
up the 490-500 move.
On this blog post from Nov 11, 2013, I stated that we were near the
.786 376 and breakout and called “potential 3 to as high as 490-500”
again. Again, this is my favorite short term trade setup and it works won-
ders on longer term charts.
On this archived bitcoincharts chart, you can see the amazing result. 
.786 breakout at 376 occurred and within 4 days the bitcoin monster hit
the 500 target! Bitcoin is so fast and crazy that these targets meet
REALLY fast.
158
On this blog post from Nov 18, I saw a 2.618 target to 700-705 followed
by “parabolic move..when corrected after 5 waves could be pretty huge..”
This chart showcases what happened. Yes, I did call 705 MAX 2.618,
and it hit, but I was wrong about the high..it hit 900. BUT, even though it
exceeded my 2.618 target, I did say “parabolic move..when corrected after
5 waves could be pretty huge”..and HUGE it was. 900 to 450 was a pretty
nasty correction.
On this chart from Nov 19, 2013, I called a W2 .618 bottom at 500 fol-
lowed by a break of 800...and a target that at the time seemed bonkers of
1875...
159
As
you can see on this Nov 30, 2013 chart, bitcoin dropped to 450, near my
500 W2 target, broke 800 and now is fast closing in on my crazy 1825-
1875 target!
Deep W2’s after huge run ups like what we’ve seen in bitcoin followed
by a QUICK .786 upside breakout, in this case 800 is the recipe for a
VERY MASSIVE upward 3 move. Moments before the crazy 3 of 3 move
(which in elliott wave terms is THE MOST powerful wave in existence) at
bitcoin 889, I said it was “on the edge of a REALLY huge move to the up-
side again..”
Here’s the result...bitcoin was just 889 and rallied over FORTY per-
cent in a matter of days to the current price of 1240. This is easily the
most bonkers trading vehicle I’ve ever seen...EVER.
Before you guys get excited..here’s the BIG problem with bitcoin. They
are very hard to find. Not because they are rare, it’s because I’ve heard
many horror stories. The biggest I heard were millions in bitcoin being
160
hacked in what was supposed to be a secure account by Chinese
hackers...I’ve heard stories like this several times. It’s a very wild west.
I’ve heard another story of 
a bitcoin investor who claimed that TWENTY percent of the time he’s
bought fraudulent bitcoin accounts with nothing in them. Just be careful
if you try to get involved in this. The safest solution I think is buying
physical bit coins on ebay. Make sure they’ve sold stuff on Ebay in the
past year or 3 months..make sure their feedback is decent, like over 800
with no negatives...Physical bitcoins appear to command a 100% pre-
mium over digital bitcoins, so don’t be shocked
when you see the prices on Ebay. Now..this pic is of a $1995.00 buy it
now, Nov 30, should I buy it? lol...
This is how I did it guys, I hoped you learned a lot from this. Make
sure to read the last paragraph! lol...
161
C H A P T E R 20
The 90% Trade

Setup(!)
After years and years of using the same technique, I was forced to go
back to the drawing board in 2010-2011. The reason? My favorite pattern
to trade off of, which I will be detailing later this chapter which I called
“W3 pattern break” appeared to be going obsolete. I have a record of be-
ing 80%+ accurate with my trading for over 11 years now, but in 2010 it
seemed like every time I bought that pattern, the next day I’d be faced
with a gap down, or barely enough movement to make a profit and a big
fade. It was like everybody was doing the same thing that I was doing
with the SAME stock (or my subscribers and followers of
Wavegenius.com) and I ended up getting the brunt end of a screw job.
Were people screwing with me, or was this technique becoming way too
obvious and obsolete?
I would post a Wave 3 pattern chart on my website during a reversal

rally off of a Wave 2 zigzag, buy the higher high as I’ve always done for
years at the close, and WHAM-O, the stock gaps down and I’m sitting
there with a 2%-4%
162
loss that I would be forced to stomach until either my stop hits, or un-
til I couldn’t take it any longer. Typically it would be the stop triggering at
my standard 2.5% (5% on margin) loss threshold, but they began to add
up. 
Each loss I noticed came the next trading day, like someone or some
thing out there knew what I was holding and wanted to screw me—OR—
everybody was doing the same thing, like I stated earlier, and the tech-
nique became obsolete. Here’s the pattern that I’m talking about.
This is a chart of a typically successful trade with AAPL back in 2005

(when it was merely $55 a share!) Anyway, the area in blue is Wave 1
which peaked at 56.25, AAPL then begins to correct in a Wave 2, in pink
right to .618 retracement in a zigzag, and the “pattern break” is the rally
163
off the Wave 2 low, where I either buy when it retraces .786 of the Wave 2,
or 1.00 of the Wave.
Successful AAPL trade circa 2005 

Back in 2005, this pattern didn’t seem to get screwed with very often, and
I ended up making a minimum of 2% (1% non-margin) on each trade. I’d
frequently get a gap up the next day in a congestion gap, and grab my 2%
or up to 10%-15%, the big kahuna moves happened 20% of the time
where the congestion gap 2% move happened 60%-65% of the time. The
other 15%-20% of the time resulted in a loss. 
It was like a machine gun/Joe DiMaggio approach. I’d buy this pattern
over and over again, grabbing “singles” (2%) before eventually hitting a
gap up home run of 10% (or 5% non-margin). It was so successful in
2003-2004 that
my frequent trades, which were profitable 80%-85% of the time, re-

sulted in a real net profit of 1776%. Yes, I turned an account valued at
around $2025.00 in Feb of 2003 into around $45,000.00 by the summer
of 2004. 
Where would I buy? At times if the market was very strong that day off of
a Wave 2 reversal, I’d buy at a .618 Fibonacci retracement of the Wave 2,
164
.786 of the Wave 2 or more frequently 1.00 retracement of the Wave 2. It
was a gimme basically. It seemed like the market makers were forcing con-
gestion into the close so they could grab the same 2% too. Here’s where
the problem started,” they could grab the same 2% too,” if hundreds or
thousands of traders were trying to grab the congestion gap, or maybe
even tens of thousands of traders were to grab the congestion gap, what
happens to it? IT VANISHES.
My worst trades of 2009-2010 were a direct result of buying trying to

grab that small percentage gain. Pre-market I’d see a small gain, which
was ok, but by the open I’d often see the gain evaporate quickly and turn
into a gap down, it got so bad that I’d run into truncated 5th waves that I
may have created on my own. There’s the problem with having a lot of fol-
lowers or disciples of your work. The trick you’ve been playing on the
market makers became obsolete, and if you don’t re-invent yourself,
you’re a goner. 
2010 really sucked for me. Early 2010 and a couple AAPL losses later, I
was forced to reevaluate, and take a long break from trading. Which is
why there’s large gaps of infrequent posts on my old websites and blogs.
I was pretty damn frustrated with this phenomenon, so I had to go way
back to an old technique that I used in 2001. Tricking everybody and forc-
ing people to buy into what they worse feared. Trying to buy a bottom.
I applied this same pattern to Forex in 2005, and thanks to this tech-
nique, I almost doubled my account in a matter of days. If you want to
see the PDF of this real trading, go to http:// wavegenius.com/pdf. But in
165
2008 I tried it again, this time the first couple trades were great, but soon
I knew those pricks at Forex.com
knew who I was and what techniques I used. Pretty soon I noticed the
“3rd wave pattern” was vanishing on me, and I even called up Forex.com
to lash out at them for fading the pattern on me. I knew for a fact that
they knew me from 2005 and wanted to hop onto my trades, trade by
trade. In 2008 came my new discovery, let’s make them too scared to
bother.
In 2008 during the financial crisis I rarely made stock or options

trades mostly because of how terrible it was obviously, massive point
losses in the DOW NASDAQ and S&P seemed to happen frequently that
fall, so I decided to take a break from the site yet again and focus on
Forex. (To this day I pray that E- Trade gets Forex because E- Trade and
Schwab are the only online brokers that offer the debit card..Forex.com
you need to wire the money if you want access to it, and that takes 2-3
days. I gotta pay my bills! I trade for a living!) Anyway, I opened a
Forex.com account and stuck with my 3rd wave pattern break, knowing
that nobody knew what I was doing, up until I noticed my pattern breaks
were fading like stocks, or my short setups were getting gaps up. I knew
these idiots were following me, so I decided to go to an old technique.
Buying the bottom of 5th waves and zigzags, lo and behold I doubled my
real life account again in 2 weeks, they were too scared to follow me!
166
The reason I had the guts to use this old technique is because I’m
pretty darn good at spotting rare Elliott wave 5th wave patterns, I’ve
picked bottoms so frequently in the past 11 years that it’s “scared people
in high places’. Because they refused to follow this, my profits exploded.
In early 2009, I decided to go back to stocks and options, because I
picked yet another bottom in late
February (it occurred the middle of March 2009) 

Don’t get me wrong guys; this technique isn’t completely obsolete. In
very bullish uptrends this technique works wonders. But in the recent
market in 2011, due to the sideways (and CRASH-like) like nature, pick-
ing bottoms of formations and having the balls to buy them is extremely
important. As of Sept 01, 2011, I’ve made 
25 swing trades, and have profited on 22 out of the 25 (23 out of 25 if you
don’t count the small escape trade losses) and have been successful be-
cause I’ve mixed up my techniques to trick the market makers/
subscribers/ followers. Hit them with this, and hit them with that, and
throw ‘em a curveball. Instead of being the predictable Joe DiMaggio, I
became Nolan Ryan with a wicked curve. 
If were in a purely bullish market instead of a sideways mess that we’re
seeing in 2011 the Joe DiMaggio approach is fine, basically. 
Now finally, I’ll get straight to why you bought this EBook—the reinven-
tion of my technique. It seems pretty simple, right? Buy low sell high?
Not quite that simple. Using Elliott Wave you need to be able to spot the
167
5th wave down or the bottom of a C wave in a zigzag, from there you
need to spot the clues of this 5th wave or C wave and pinpoint when fear
in an intraday chart seems the worst. 
When I used “the 3rd wave pattern break” technique I would buy when
the euphoria was reaching a crescendo, when the market is sideways to
down or REALLY down, this ain’t a good idea. Euphoria in a sideways
market can evaporate fairly quickly and you could be stuck with a really
bad position, buying at the highs and you’re staring down a 200 foot cliff.
But my new/old 2001 technique cannot and WILL not become obsolete
simply because it requires more balls and confidence to trade off of.
I found that nobody apart from subscribers wanted to follow the bot-
tomless black hole of a 5th wave technique, and because of this when I re-
leased a trade alert, instead of a gain evaporating, I’d get quite a spike. I
made a trade in August 29 2011, which spiked almost 2, its in matter of
seconds with AMZN. You could say that I’m finally becoming “aware”. 
Here’s where it starts. 
If you notice, there’s Wave 1, Wave 2, Wave 3, Wave to .382 before a 5th
wave down. In the chart I pointed an arrow to the downside that shows
that we may get a 5th down. What happened was in this trade setup that
there was a
truncated 5th wave down to around 362 near the bottom of my recent
Aug 19th bottom call in the S&P DOW and NASDAQ.
168
Example of a successful trade setup 
Right at the bottom of this formation was a 5th wave truncation. I saw
that it was clearly 5 waves down and bought 1200 shares (600 first and
600 after that at an average price of 362). I ended up selling the 1200
shares for around 372 (could have had sold it at 376, but Steve Jobs hap-
pened to step down as CEO from Apple the day I sold it) for a 10 point
profit! 
Now how did I spot this 5-wave pattern? And when do they form? Right
after a stock or ETF peaks after 5 waves up, there’s a retracement. If this
retracement drops in a 5-wave pattern, I get very excited. What perfection
is to me, is not just 5 waves down, but 5 PERFECT waves down. 
Here’s the formula for perfection. It doesn’t appear hard, but when you
have real money involved, it can be a little scary, because we’re so used to
buying highs and higher highs lol. 
Here’s what I typically want in my new trading pattern.
1. 5 perfect waves UP complete in the stock. 2.) We get the first

wave down.
2. The second wave or upward B retraces near or exactly .618 of the

Wave  
1.
3. The 3rd wave down is exactly 1.618 X Wave 1 or even 2.618 X

Wave 1.
169
4. Here’s THE most important part. The 4th wave up retraces EX-
ACTLY .  
382 of
5. the 3rd wave. NOT .236, NOT .500, or that BS that people come
up  
with. I’m
6. talking EXACTLY .382, if not EXACTLY .382, pretty darn close

to it.
7. And the final step, we get any one of my numerous 5th wave pat-
terns.  
This
8. 5th wave has to subdivide into 5 waves and form and ending di-
agonal,  
truncation or standard 5th wave that’s W1 = W5 or .618 X (w1 + w3).
At times you can use the RSI, if the long-term chart has an RSI for the
stock 20 or under, that’s another bottom predictor that occurs frequently. 
43 
That’s the beef of my technique, BUT here are more scenarios that I like
to trade off of utilizing my new technique.
Ø > Trade the upward 2 

Basically, if the Wave 1 down is pretty steep, say 2%-5% down, and the
first wave subdivides on the 5 minute or 10 minute charts, those subdivi-
170
sions can form a mini 5 waves down, and the upward 2 can retrace .618
of the Wave 1. If a stock like GOOG drops from 600 to 570, a .618 retrace-
ment would be about 18 points, which is a great swing trade. But if the
Wave down is from 600 to 595, why even bother, of course. This approach
can also work on the longer- term 3-6 month charts, which I prefer to
trade because the swings are a lot wider. 
Ø >Trade the upward 4 
This can be a very profitable trade if you follow these steps:
1. The stock gets Wave 1 down that’s sizable (say 2%-5%)
2. Wave 2 is EXACTLY .618 (or pretty close) of the Wave 1.
3. The Wave 3 is 1.618 X W1. Must be EXACTLY or pretty close to

it.
4. The 3rd wave has to be worth it, say a .382 retracement of the
3rd wave  
is
5. 2%-5%, buy the bottom of the 3rd wave and ride the 4th wave up.
6. .382 retracement of sizable 3rd waves, can provide pretty large

profits. If
you saw my GOOG trade earlier this year, the 3rd wave was exactly
1.618 and I rode a 20-30 point 4th wave. 

Ø Buy the bottom of a C wave in a Wave 2 Zigzag Here’s what’s required.
171
1. The A wave subdivides into 5 waves.
2. The B wave is EXACTLY .618 of the A wave (or again, pretty

darn close  
to it.)
3. The C wave is EXACTLY equal length to the A wave (or pretty

close and
4. subdivides into 5 waves.
5. The overall market like the S&P DOW and NASDAQ MUST be  
following the
6. same pattern.
7. When A = C, buy the bottom of the C and ride the upward 3  

retracement.
I rely less on the zigzag formation to buy, however. I like to buy the bot-
tom of 5 waves down, typically because if there’s purity like Wave 2 =
.618, Wave 3 = 1.618 X W1, and Wave 4 is .382 of Wave 3, I get pretty ex-
cited. These trade setups have worked 22 out of my 25 trades this year
(with a little “pattern break” mixed in.)
Here’s a list of what NOT to do.
1. If the stock is in it’s own little world and is not following the
S&P DOW  
and NASDAQ, don’t bother.
172
2. NEVER EVER assume that a large gap down on earnings is a
3rd wave  
down. I guarantee bottom fishing garbage stocks like this is a bad bad  
idea.
44
3. The 3rd wave down must not occur on a gap down and has to follow
the overall market, you have to see wave 1 of wave 3, wave 2 of wave 3,
wave 4 of wave 3 and wave 5 of wave 3 clearly. If you don’t, don’t even
think about it. What’s the worst that can happen?
Well, for me, not as bad as you’d think. Say you buy the bottom of
what you think is a 5th wave down, and it ends up being a 3rd wave or a
pretty big 5th wave, since you know that this is at least the end of a 3rd or
5th, you can typically get a retracement that can either net a good 1% or
higher, retrace . 382 from where you paid, or .618 of what you paid.
If it happens to be a 3rd wave down, from my experience, the 4th wave

can retrace back to what you paid or close.
If the C wave turns into a 3rd wave and is further than A = C, you can
wait for a 4th wave up to make a small profit or regain what you lost. Or if
you got trapped in a 3rd wave down instead of a C wave, you can average
down. There are times when I buy this pattern using only 50 percent of
my account and just in case it turns into a downward 3, I have enough
ammunition to buy another 50% of my account to average down.
173
What 5th wave moves are possible? 
Well, if you want the most ideal 5th waves that can provide massive
swings to the upside, try to buy at W1 = W5 when the indices are follow-
ing that stock, with ending diagonals (ABCDE as detailed in “Elliott Wave
Secrets” EBook), and cup and handles (which is also detailed in that
EBook). W1 = W5 seems to be the most frequent occurrence, but remem-
ber this final 5th wave, if you zoom in on the 1 minute chart MUST subdi-
vide into 5 waves. When there’s a lot of fear and the market is cascading
down, use this opportunity to buy, not short. I don’t short anymore sim-
ply because I believe that there’s too many people following my trades
and if they short with me, they can gap it up which kills the trade. 
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C H A P T E R 21
This Does Happen.

But Rarely.
My biggest blunders and how I could or already fixed them.
The biggest blunders I’ve made loss wise were not essentially the fact
that my 80% or 90% pattern setups had failed me. External circumstances
that were out of my control had basically screwed me.
Going back to 2008 I can think of a few big pointers that can save me
from walking into a big loss or a bad call. 
I rarely make bad calls or trades, because as you guys know I’ve been
right on hundreds of long term charts calling W2 zigzag and W3 1.618
3rd waves for many years...if you know about my history 80%-85% of the
time (this is being conservative!) this pattern develops the 1.618 result
has occurred. I can go back to as far as 2002 when I’ve made a 5 wave
down bottom call or zizgag into a 3 pattern call and realize that yes, my
setups rarely fail.
But when or if they do, I try to solve them as quick as possible...I know
that I can achieve 90% or even 100% accuracy as long as I avoid the big
pitfalls of this setup.
175
In 2008 I failed to recognize the big downward 3 crash wave even with
the big warning signs of failing banks and news of the crashing housing
market. It was a SERIOUS situation and I ignored the deadly bad funda-
mentals and proceeded to try to call a Wave 2 zigzag low just 1 month be-
fore the serious downward 3 formed. I even had a dumb video stating
that we were at the low
of a freaking Wave 2 zigzag at the peak of the upward 2 before down-

ward 3 crash move. Just a month later I was staring into the pit of one of
the biggest crashes in US Stock Market history. My credibility was basi-
cally shot after that massively bad call in 2008 and it took me calling the
2009 bottom on all 3 indices to almost the exact number and day to have
people believe in me again...and calling massive upward 3’s in the indices
when everyone was looking for another crash in early 2011... In 2007-
2008 I was a complete nobody and nobody really gave a crap about me,
bought I fought back and never gave up.
How could I have solved this if ever happens again? Personally based
on the current wave formations I DO NOT and think it’ll happen (a crash
of that size and magnitude) for at least another 15-30 years. Yes, 15-30
YEARS. We had TWO back to back bubbles in the lost decade of the
2000’s, and the fact that the S&P broke the 2009 peak of 1550 even when
everybody and his mom
were calling an ignorant “triple top” formation, and are currently enter-
ing the very sweet spot of an upward 3 of 3 (Today’s date is Dec 8, 2013), I
176
seriously doubt I’ll ever run into that mistake ever again in my lifetime.
MY
LIFETIME.
In 2010 my biggest blunders involved trading AAPL Options. 

In 2010-2011 AAPL option calls, which I typically trade 3-6 months out
were all the rage, but when I traded them the time decay was VERY fast. I
did recognize that this was the case, but I pig headedly kept trading them
because AAPL would make some pretty big gains while it rocketed to the
all time high near 700.
I ran RIGHT into the big flash crash holding AAPL options in May
2010, but luckily I held during the massive spike down intraday in AAPL
and held. It was one of the most bizarre incidents I’ve ever seen. Some-
one with a big fat finger dropped the ENTIRE market over 1000 DOW
points in a single 5 minute period, and stupid Ted had 6 month out
AAPL options.
It did hurt of course, but I managed to scrape back whatever I could as

it
rallied back from the lows. 

Here’s where I could remedy this costly mistake in the future.
- It was a 3rd wave up pattern and like a pig getting slaughtered, I re-
fused to acknowledge that it was the peak of 1.618 and 2.618’s are very
177
rare...I was thinking Wave 3 all the wave to 2.618 instead of 1.618...like a
complete imbecile. Lo and behold “20% of the time” 2.618 Wave 3 move
never developed and I walked right into the flash crash holding AAPL op-
tions.
Remedy: NEVER believe in a 2.618 pattern on a Wave 3 because they

only happen 20% of the time. When you get near 90% of a full 1.618 Wave
3, sell and back off.
In 2011 I made another big fat boo boo.
Right before the 2011 European crisis market crash, I bought the tri-
ple ETF TNA..I’m talking just DAYS before the crash had started..it was
a 5 wave top
right into a nasty Wave 2 crash.
I don’t remember exactly what I paid, but think of it this way...BUY

PEAK OF 2011 HIGH TRIPLE ETF TNA, and hold during a severe Wave
2 crash with NO STOP.. Yeah, it sucked pretty bad.
Here’s how I made the mistake... 

I had already recognized that there was another 5 wave move up to 1357
in SPX.... 
I knew that it had touched my .618 X w1 + w3 target right on the number
(I called 1352) in a 5th wave. 
However due to my idiocy, I also failed to recognize the speed of the drop
178
as it developed, and thought I could fight back..it was clearly entering
crash mode and crash it did.
However it took about 12 months...I held TNA through that entire

time in one of my trading accounts and didn’t even bother to look at it.
TNA is not an option, but a triple ETF so when it bounces it REALLY
bounces. Believe it or
not I actually sold that one nasty little bitch for a slight gain in the
summer of 2012, and I didn’t look back.
Keep in mind. I would NEVER touch TNA...ever...again.. Finally in

2013, the TSLA trades.
What I failed to recognize quickly was the huge relative weakness it

had when the market and S&P had risen almost 100 points off the lows.
Yes, the big loss in TSLA in October 2013 came with “the wind behind
my sails” 
S&P = rallied almost 100 points since that ordeal. What a joke eh?
TSLA = down 10% from where I bought and average down to (178
sold at 164)
It wasn’t THAT bad (it actually dropped to as low as 116 weeks later),
but I fought valiantly to break even. The mistake was again not being able
to recognize the relative weakness after mega downgrades and the headi-
ness that Tesla cars bursting in flames..
179
Here’s how I’d easily solve this problem. 
Trade NOTHING but the triple ETF’s UPRO SPXU TQQQ and SQQQ,
and NEVER touch a company stock EVER...again..
180
C H A P T E R 22
The State Of The

Evolution Of E-Wave
Please read this article from early 2012. This will tell you what I’m seeing
long term...not what you expected eh?..at the end of it you will be read-
ing probably the most important article about the state of elliott wave you
have never seen before.
The huge article in 2012...pretty interesting stuff!
Here we go...
“..The bottom in March 2009, again was the FINAL BOTTOM before
the bull market that started that month..”
“...The most insane 3rd wave target for the DOW, which I haven’t men-
tioned in any of my videos and charts is the W3 that’s 1.618 X the per-
centage gain of the W1. The first wave travelled 1.98 x 6500..which is al-
most double. Take 1.98 and multiply that by 1.618 and you get 3.205X... If
the low of 10,404 was the bottom of the W2, and the 3rd wave travels that
distance a potential target could be 33,346(!)...”
I have decided instead of doing a video or chart to explain in detail

why I believe the DOW or DJI will hit 20,715 or even 33,346(!) in the
coming few
181
years. The videos people tend to fast forward because they are after all
almost 10 minutes long and people would rather want to see text instead
of listening for that long. Also, the reason why I want to do a long text de-
scription of the long term DOW chart is because charts have limited
space.
Anyway, here’s the detailed wave count of the DOW from 1987 to the
peak in 2000 to the low hit in March of 2009, which I believe is the bot-
tom of a big C wave after a flat that started way back in January 2000.
This is where I will start...the drop from approximately DOW 14,200

to 6500 was a pure 5 wave impulse that completed a Wave 2 flat that
started back in January 2000. The reason I call it a Wave 2 flat is because
how far we retraced...the first wave started at the bottom the year 1987
and ended in the year 2000. The .618 retracement level would have ended
up being in the 6000-6500 range, and we bottomed right at 6500...it was
one big ABC Flat Wave 2. I actually called this bottom right on the num-
ber in one of my Youtube videos in late Feb 2009. Just go to
wavegenius.com/proof and watch the video there if you want to see my ex-
planation.
The C wave formed a perfect 5 wave formation down which is why I

was able
182
to pinpoint almost the exact date and the exact level of the DOW’s ma-
jor bottom. I believe this will be the FINAL bottom before what could be
a multi- year or even multi-DECADE bull market.
Each wave was perfect, W1 from 14,200 to 12,200, W2 was close to .618
from the bounce at 12,200 to 13,100, the downward 3 was 1.618 X W1,
the W4 was .382 of the W3 and the final 5th wave was close to the length
of W1 (W1 = W5). The bottom in March 2009, again was the FINAL BOT-
TOM before the bull market that started that month.
The RSI was the lowest since 2001, the slow stochastic was 0 and we
had a pure 5 wave impulse down. RSI and Slow Stochastic used in tan-
dem with Elliott Wave and Fibonacci is the main formula I’ve used for
years to pinpoint the many bottoms that I’ve called for almost 12 years
now...also the VIX also got close to record highs and the bull/bear ratio
had an extreme amount of bears historically. These are the forms of tech-
nical analysis that I’ve found the most reliable.
Now for the wave count of the bull market that started in March 2009.
Yes, I said a BULL MARKET THAT STARTED IN MARCH OF 2009.
Basically, I believe that we got a pure impulse off the March 2009 lows
from DOW 6500 to DOW 12,876 in 2011...each wave was perfect fibo-
nacci and fit the standard length in each move. Yes, I said it was a PURE
IMPULSE, and it
was the first wave (W1)
183
Within this new bull market impulse we ended up getting the W1, or
the first wave from 6500 to approximately 8800 in the DOW. The Wave 2
was a perfect
3 wave ABC zigzag that retraced in an A = C from DOW 8800 to DOW

8200.
The 3rd wave from 8200 to approximately 11,250 was near 1.618 the
length of the W1 which fits standard fibonacci length for a W3, and oc-
curred in a 5 wave
extension. This is a standard move.
The 4th wave from 11,250 to approximately 9700 retraced about .382
of the 3rd wave rise from 8200 to 11,250 and occurred in a 3 wave pattern
ABC
zigzag. This was the so-called flash crash.
The 5th wave is what gets me the most excited. The most common 5th
wave patterns are W1 = W5 and .618 X W1 + W3. We got a precise .618 X
W1 + W3 move from 9700 to 12,876. Take .618 x w1 + w3, tack on the
length from
the low of the W4 at 9700 and you have a perfect 5th wave up.
184
Now after this impulse completed from 6500 to 12,876, we got the
“European
Crisis” W2 zigzag.
W2 zigzags tend to retrace to the previous 4, and we ended up reach-

ing the middle of the previous 4 around 9700-10,700. It occurred in a 3
wave pattern down with a short C wave. It was A wave = 12,876 to 10,600,
B wave up to 11,700 and C wave down to 10,404. This was again a 3 wave
zigzag off the
12,876 high to the previous 4.
Now the “pattern break” setup. If you’ve followed my site for the past
decade you know that I trade a pattern which I’ve nicknamed the “pat-
tern break W3.” Whenever I’ve seen this pattern in indices, stocks or cur-
rencies, not only do we “go up” we actually HIT the 1.618 target that I set
for it 80%-85% of the time. No kidding. For proof go to
wavegenius.com/pdf and look at the PDF’s from 2009 and 2010. You’ll see
that 80%-85% of the stocks had the 3rd wave pattern break setup and
80%-85% of those stocks hit the precise 3rd wave target or higher. I know
it’s pretty insane, but there’s NO SLEIGHT OF HAND. I have the time
stamp of each chart that I analyzed on the blogs.com
185
site and if I manipulated these results in any way it would be ILLE-
GAL.
Anyway, the point is that 80%-85% of the time I see the “pattern break
W3!!
we hit the 1.618 target or higher.
The pattern is like this..W1 impulse, W2 zigzag in 3 waves and a break

above the top of the W1, which in this case is 12,876. We broke the pat-
tern break
recently and are currently trading around 13,000 in the DOW..
The most conservative 1.618 golden ratio fibonacci target is 20,715.

Take the distance from 6500 to 12,876 and multiply that result by 1.618.
Add that
number from the low of the W2 at 12,404 and you end up with 20,715.
The most insane 3rd wave target for the DOW, which I haven’t men-
tioned in any of my videos and charts is the W3 that’s 1.618 X the per-
centage gain of the W1. The first wave travelled 1.98 x 6500..which is al-
186
most double. Take 1.98 and multiply that by 1.618 and you get 3.205X... If
the low of 10,404 was the bottom of the W2, and the 3rd wave travels that
distance a potential
target could be 33,346(!).
Just take a look at my track record for the past 10-12 years on my web-
site wavegenius.com. You’ll see that not only am I 80%-85% accurate on
my long
term forecasts, I’m also 80%-85% accurate with my trading. 80%-85% I

make
a profit on a trade, and that’s pretty much the entire point of following
the
stock market. To make money.
So my long term DOW forecast targets are both 20,715 conservatively

and as high as 33,346 if it travels the nose bleed full length...
---------- 
187
Dec 11, 2013 BIG “STATE OF THE ELLIOTT WAVE” Update.
When this article was written the S&P had just broke into the the 3rd
wave that I was looking for and was sitting at around 1490 and had just
begun the ascent to around 1811...here are my 4 big observations about
the “state of elliott wave”...the excessive new power of the .382 upward
Wave 4 retracement..the prominence of the 5 wave trading pattern down,
where the reversal appears to happen a huge percentage of the time (I’ve
had a bunch these 5 wave trades, and I don’t even remember the last time
I had a loss with it)..the new 3rd wave grinder formation..and 1-2-3 no 4
no 5 formation...
As you guys now on my website, I see different formations every year

that
evolve...here are my observations:
1.) The new 3rd wave design..specifically the “grinder” formation...I

only begun to see this phenomenon late last year 2012, and the year
188
kicked off with one..here’s what it looks like...you get Wave 1, Wave 2,
Wave 3 and .786 break followed by 1.00...and a BIG gap up rally...but
that’s the kick off part of the 3rd wave..what happens after w1, w2, w3
and pattern break these days on a successful big gap rally is this: the mar-
ket will grind very very slowly to the upside and incrementely...it’s very
slow and very “chinese water torture” like for the bears, and any sudden
bigger move will antagonize it...what’s funny is that this formation hits
the full 1.618 golden ratio so frequently that it’s almost a no brainer 3rd
wave when it happens...keep in mind when 1.618 hits, the corrective is
fast...and this happens..this formation is NOT mentioned anywhere in
Robert Prechter’s “The Elliott Wave Principle” book, and is a very note-
able formation...
2.) What happens these days on full 1.618 moves in 3rd waves is
this...Wave 1, Wave 2, Wave 3 RIGHT TO 1.618 on the
NUMBER...followed by not Wave 4
to .382 and Wave 5..instead of 4-5 almost immediately there’s a full cor-
rective
Wave 2 that can touch the full .618 retracement before reversing back
the resumptionofthebullishmove. Thegoldenruleinthe“ElliottWave Princi-
ple” blue book is that 1-2-3-4-5 MUST be formed to get an impulse.. with-
out 1-2-3-4-5 there CANNOT be an impulse..if this is the case, why did
earlier this year we got a Wave 1, Wave 2, Wave 3 formation that dove
straight into a .618 Wave 2 and reversed...and formed higher highs..this
189
very formation occured in March 2013 of this year, and proceeded to
climb all the way from around 1550 to 1811 that we’re seeing now. 1-2-3-
4-5 is NOT a golden rule for a bullish impulse these days. There were 3
VERY visible moments this year, where I saw Wave 1, Wave 2, Wave 3 that
dove straight into a deep .618 W2...I warned everybody about it THREE
times this year on a live video, and the moment we hit 1.618, KABOOM
Wave 2 at .618 with no 4-5 up. I basically in essence can now call tops
with very fluid accuracy as well...but I’m essentially the only one who can
see it. It’s not a 100% formation guaranteed, but pretty damn close.
3.) One VERY huge recent development is the excessive power of the
upward . 382 Wave 4...Who would have thought that the most ignored
wave pattern, W4 would have so much power these days...I can name
countless times where I was
like “we need a Wave 4 here let’s get .382 on the number and bottom
this thing out...” please note...the upward 4 MUST NOT exceed .382 by
large margin..I would only accept above .382 if there’s maybe .50 or $1
above that price these days...many of these W4’s have been dead on the
number..followed by a 5th wave that’s wave 1 = wave 5, .618 X wave 1 +
wave 3, or truncation..the truncations after 4th waves these days are get-
ting more frequent and the reversal way more powerful. Remember .382
on the NUMBER that I calculate is important because the fourth wave
would signal the termination of a downward 1.618 Wave 3, followed by
the incredibly weak 5th wave..5th waves to note are very weak and easily
190
identifiable these days...why is this important? Because of this one HUGE
formation....
4.) THE NINETY PERCENT TRADE SETUP!! Yes, guys I now have an
incredibly powerful trading formation that’s very reliable...9 times out of
10 in 2013 has this formation been profitable and HUGELY profitable.
Here’s another big point about it...The Elliott Wave Principle states this:
ALL CORRECTIVE WAVES NEED TO BE THREE WAVES (Golden
Rule)...this is NOT a golden rule anymore...guess what happens .....5
waves down is NOW a standard corrective wave! Yes guys...this is now a
standard corrective Wave 2 formation...Shocking eh? Well believe me this
shit works all the time...I can name multiple times this year where I saw
wave 1, wave 2, wave 3, wave 4 RIGHT To .382 on the NUMBER followed
by a 5th wave that’s . 618 X W1 + W3, wave 1 = wave 5 or 5th wave trunca-
tion and KABOOM big bottom and massive reversal back to new
highs...trust me when I say this...it works very very well...this very forma-
tion occured on NASDAQ years ago in 2002, when I called THAT bot-
tom, so it’s not old..it’s actually been changing every year, and now when
I spot it, something very magical happens....beware Mr. Ted when he says
“1-2-3-4-5 down Wave 2 forming.. .382 is exactly .382 now let’s see which
of the common 5th waves form....” Beware bears...be- fucking..ware..
Those are the 4 MAJOR new developments in elliott wave that have
broken all the so called “golden rules..”...There’s nothing golden if the el-
liott wave
191
continues to evolve every year..in order for the market to develop the
way it has, there needs to be slight changes in these patterns, but this
year they have been very dramatic....i’ll bet Mr. RN Elliott if he was still
alive would love to sit down and have a cup of coffee with me at Star-
bucks to discuss his theories..but of course that won’t happen..he’s my
match, but he’s resting in peace..
Also note, this massive book I’ve written will change EVERY YEAR,
with a NEW State Of The Elliott Wave section like you’re seeing
now...not because I want to take all your guys money lol..but because elli-
ott wave can evolve rapidly and break the golden rules very quickly..who
would have though right? Observe with me what happens when these for-
mations happen..it’s really freaking cool to see..but again, it’s usually
when Mr. Ted the Wavegenius spots it and clearly nobody else...
192
C H A P T E R 23
The 20 Most Important

Charts With Major Future
Implications.
This chapter will showcase the 20 most important charts that may make very very
major moves to the upside in the coming decade. If i were to buy these I would
even consider holding them..for decades. But since I know where they are going
with a degree of 80%-90% accuracy it wouldn’t be a bad idea. Here we go. (I’ll be
doing visual charts on 10 of the 20)
Here’s the list and summary of why they are so important:

Nikkei - Literally in December of 2013 just broke into a massive upward 3 af-
ter a pure corrective Wave 2 zigzag.
DAX - Same deal. But DAX is right in the MIDDLE of the EPICENTER of a
3 of 3 with major implications.
S&P - S&P has two major targets with one that is twice the size of the current
level in a Wave 3 = Wave 1 multiple gain X 1.618
Gold - Gold could be fast reaching a major bottom before upward 2 reversal in
a pure 5 wave down pattern going back to the peak.
AOL - Island reversal 3rd wave gap with a big major 1.618 target it has yet to
hit.
TWTR - Very popular internet company with a very high Price To Earnings
ratio, but it got a W1 from 0-50, W2 and major 3rd wave breakout in Dec 2013
TSLA - May have bottomed where I called it around 115 (hit 116) and might
be re-entering a major upward impulse.
193
AAPL - May have reached a major bottom before hitting the very important
upward .618 reversal level.
USD/JPY - Entered a pure upward 3 move after a large zigzag and could ex-
tend for many years.
CMG - Crazy gap island Wave 3 reversal after a deep scary 2...renaissance 3rd
wave.
SLV - Silver ETF might be very close to both C wave length in a deep 2 and or
5 waves down in a C wave.
TNA - Triple ETF for the Russell 2000 is rising exponentially in a Wave 3..not
even close to 1.618 yet.
GLD - Gold ETF near 5 wave pure waves down with a .382 W4.
FB - 4 before a 5 near but it could surprise us with a 3rd wave move.
GOOG - In middle of epicenter of 3 of 3 from the biggest internet company
in the world.
PCLN - In the middle of the epicenter of 3 of 3 as well and a mammoth
stock...gap island upward 3 was the cause likely on a major earnings swing.
FTSE - As is DAX has just entered a massive upward 3 that could last many
many years.
Bitcoin - could be entering the renaissance period of it’s existence and in an ex-
ponential 3rd wave move.
UPRO - in the epicenter of a 3 of 3 move, and since it’s triple the S&P it will
rise triple as well...3545 in S&P is no laughing matter.
TQQQ - TQQQ is the triple ETF for NASDAQ 100 and NASDAQ might be
entering the epicenter of a very large 3rd wave over the all time highs.
194
SECTION 1
S&P 500 Long Term 1.618’s
On the S&P 500 long term 5 year chart from the final bottom OF OUR EN-
TIRE LIVES in 2009, it’s a very simple pattern. Wave 1 was 666 to 1355 with a
clear 5 wave pattern, Wave 2 crashed in a zigzag from 1355 to 1075 in a deep 2
back to the previous 4 support on the European crisis in 2011. It broke into the
“80% Profitable Pattern Break” early 2012 over 1355, setting up the 3rd wave.
Many “others” were thinking “triple top at 1550” or 5 waves up to 1550 or what-
ever, but I called a mammoth 3rd wave to as high as 2215 when it just broke that
1355 1.00 breakout level. Currently it’s sitting around 1779 (recent high was
1813.50 in Dec 2013). The highest conservative 1.618 target would be 2215,
which is plenty of distance from here, but the 1.618 X the multiple gain of W1 tar-
get would be 3545. This is the most common 3rd wave extension in long term
bull markets..(just look at charts going back to the early 1900’s on the DOW) ...ba-
sically you the multiple gain of W1 which was 2.0345, multiply that number by
1.618, which would be 3.2918, multiply that number by the low of S&P W2 which
was 1075, and you arrive at the target of 3545.
195
SECTION 2
UPRO 1.618 X Multiple of W1
UPRO first wave approximated would be the low March of 2009 around 8 to the
top of Wave 1 to 43. Wave 2 retraced right to the previous 4 at 19, held, and ral-
lied in a pure upward 3. Here’s the big thing about UPRO..it’s already BROKEN
past the 1.618 conservative target of 76.63...which MEANS that it could be right
in the middle of the epicenter of a very large upward 3 move. That would be
Wave 3 = 1.618 X the multiple gain of the first wave which happens to be 5.375
X 1.618 = 8.9675, multiply that number by the low of the Wave 2 which was
19.80 and you arrive at the multiple gain of W1 X 1.618 target of 172.10. It’s not
crazy target since S&P could hit either 2215 or 3545 in the next few or couple
years, and UPRO is a TRIPLE ETF.
196
SECTION 3
TQQQ 1.618 Multiple of W1 Move
On the five year chart of the TQQQ , which is the triple ETF for NASDAQ
100, the first wave travelled from 8 to 47 approximately (based on the March 2009
low), the second wave retraced back to the previous four at 25, and the 3rd wave
target of 1.618 conservative was shattered in a big way when it hit 117 recently..
But the next target above 1.618 would be 1.618 X the multiple gain of W1.
This is calculated by this formula: 47 divided by 8 = 5.875, which is the multi-
ple gain of TQQQ from low of 2009 to peak of Wave 1. Take that number muti-
ply it by 1.618 and you get 9.50575....multiply that number by the low of W2 at
25, and you get this result: 237.60 which is the “big” wave 3 move. It’s a common
occurrence in real bull markets, and NASDAQ 100 still has plenty of upside from
here, so it’s not a crazy target AND it’s a triple ETF.
197
SECTION 4
CMG Pure Upward 3 1.618 Target
Chipotle has a very spectacular chart..when I would visit Chipotle during the
big deep corrective 2 back to 227, you can see it in the stores when I went to eat
for my Atkins diet. Lines were a lot smaller during this move and people were
thinking it was just one big fad. Well, according to this chart it’s moved WELL
PAST the so-called fad stage into a renaissance type of move. The conservative
move for CMG would be 1.618 X Wave 1, after the deep scary “oh no this is
FAD” Wave 2 correction. The highest target on the gorgeous breakaway island
3rd wave 1.00 gap move would be 874.30 if 1.618 X Wave 1. Keep in mind if
you read this book and saw the PCLN chart, PCLN got the same thing when it
was around 274...the same gap island 3 with power on fundamentals..look where
it is NOW. Over 1100 as we speak in Dec 2013.
198
SECTION 5
AAPL 1.618 W3 Target = 1398.3
AAPL after such a severe and long ass correction, it is forming the most POW-
ERFUL Wave 2 long term correction move there is. If you read earlier chapters
about the power of the Wave 2 cup and handle you will notice that almost every
time this formation occurs it hits the FULL 1.618 X W1 Wave 3 target. No differ-
ent for AAPL’s 5 year chart. The roundness of the cup formation after a non-
zigzag correction further confirms that it might be entering a very large upward 3.
Conservative target if 1.618 X Wave 1 from 80 to 705 from the March 2009 low,
would be as high as 1398.30. That would be 1.618 X the first wave. I actually
have done two big things with AAPL this year. I called almost the EXACT low in
a youtube video a month before it formed...I stated “AAPL would be a great buy
for the long term under 400 or 385-390..” (not precise words but pretty close)
AND..this same target and bottom low was mentioned on the FRONT PAGE of
TheStreet.com in March 2013...I ALSO stated a target of 1600 by year end
2014..I will not adjust this target based on the confirmed Wave 2 low of 387 to
1398.30 as year end 2015 (NOT 2014) target. Apple loves me =)
199
SECTION 6
GOOG 1.618 1079, 2.618 1487
Funny thing about GOOG’s 5 year chart is that the full 1.618 target drawn from
taking the length of Wave 1 from 250 to 645 and the low of Wave 2 would actu-
ally be exactly 1079. Pretty funny. HOWEVER....the recent powerful island re-
versal gap up 3rd wave epicenter move had huge volume and the company still
has serious momentum. This is GOOGLE we’re talking about. The fact that it
hit 1.618 does NOT mean that I want people to short it. BAD. BAD idea. It’s far
ahead yeah, but the 2.618 variety is NOT out of the question. In fact it’s probably
the most logical target right now....the target would end up being 1487 if it travels
2.618 X Wave 1 in the “rare” Wave 3 target (20% of the time W3 is 2.618)
200
SECTION 7
GLD/Gold Bottom 5th Wave

Targets. Both + Truncation.
GLD or Gold has hit just about every single fibonacci target near the numbers as
possible..so the 5th wave down which is in progress may do the same thing.
What’s really cool about this chart is this:
1.) Wave 2 was exactly .618 to the upside making it a pure upward 2 to 174
from 147.
2.) Wave 3 was almost precisely 1.618 X Wave 1 right down to 115 (precise
1.618 Wave 3 would have been 111).
3.) Wave 4 was EXACTLY .382 of the downward 1.618 Wave 3, which means
Gold or GLD could be closing in on a major..MAJOR bottom.
4.) The 5th wave is in progress...BUT the two 5th wave targets which are wave
= wave 5 are 98, and 93.66 of .618 X W1 + W3.
201
What I’m saying is that GLD or Gold are NEAR A BIG MAJOR
BOTTOM...BUT, the pain that will be inflicted if you decide to bottom fish now-
and buy at 115-118 would far surpass your pain expectations because the 5th wave
targets are really really far from where we are now...but if there’s a truncation bot-
tom and a sudden reversal over 133-134, that may be the real bottom and it may
not be forced to dive under 100 to bottom out.
202
SECTION 8
Nikkei Near “End of 22 Year Bear”
On this beautiful Nikkei chart, there’s a Wave 1 from 8300 to 15,970 a DEEP
corrective Wave 2 from 15,970 back to 12,400...AND it’s just entered a breakout
“80% trade setup” 3rd wave move...If it travels 1.618 x Wave 1, the highest target
would be as high as 24,958. That would also double as a .618 upside breakout of
the ENTIRE 23 YEAR BEAR IN THE NIKKEI. This could finally be the point
where the entire struggle of the Japanese civilization ends. They have really had a
bad time in the past 23 years, and from what I’m seeing they could finally see real
sustained growth pattern on the Nikkei chart.
203
SECTION 9
DAX Wave 3 = 13,377 or 22,477
DAX is clearly in a pure upward 3...Wave 1 was 2200 to 8150, deep corrective
Wave 2 back to 3750, and broke above .786 and 1.00 at 8150 setting up this big
upward 3...highest target if conservative 1.618 would be 13,377..but if it follows in
the potential footsteps of S&P in a 1.618 X Multiple of W1 move it would target
as high as ...(8800 divided by 2200 = 3.704, 3,704 X 1.618 = 5.99 X low of Wave
2 at 3750 = 22,477.3295)...22,477.3295. Far cry from the European crisis in
2011, eh? Yep.
204
S E C T I O N 10
USD/JPY Just Entered W3 = 135
USD/JPY is essentially mirroring the Nikkei 225 in terms of forming a big mas-
sive upward 3...it has the SAME chart formation. Wave 1, Wave 2, into Wave .786
and 1.00 breakout. The high was 103.50 and it just broke it tonite...the highest
target if: 103.5 - 78 = 25.5, 25.5 x 1.618 = 41.259, Low of Wave 2 was 94, Add
41.259 to the low of W2 at 94, and you get 135.20...this is a very pure and easy to
spot Wave 3...a possible huge one with big implications...dragging the entire Japa-
nese economy out of the 23 year toilet would be a BIG boon for the. Finally eh?
205
C H A P T E R 24
The World’s Top 5

Elliotticians.
The World's Top 5 Elliotticians/Elliott Wave Analysts
1.) Ted "gem-x" Aguhob WaveGenius.com
The Artist Formerly Known As "gem-x". With an Elliott Wave record second
to none for almost 12 years now, and the 80% trading record to back it up, Ted is
to Elliott Wave, like Michael Jordan is to basketball, and like Babe Ruth is to
baseball. Like magic, some people say that things move around with his
words..."
He's made quite a few "legendary" calls and trades over the years...so many in
fact that it's scared people in very high places. Like REALLY scared them.
2.) Don Wolanchuk Wolanchuk.com
Don not only is an incredible elliottician, his incredible in depth knowledge of

all forms of technical analysis has astonished for decades. A former media darling
featured on FNN in the 80's frequently, Barron's, IBD, Business Week and many
more magazines..Early on in 2001 on Siliconinvestor.com I learned
206
a lot from his wide range of analysis. On one public post on a SI, Don actually
said to me that "..ur scary..u da best" =)
Yes, the legendary Don Wolanchuk himself is known as "da_chief" on
Siliconinvestor.com.
3.) Ed Handley Edhandley.com
Ed is a very proficient technical analyst and learned his craft studying Ted
Aguhob's Elliott Wave technique for years at Gemxwave.com. He hosted a radio
show for years at Washington Business Radio DC700 and continues to broadcast
hour long elliott wave podcasts on his website.
4.) Tony Caldaro Caldaro.wordpress.com
One of the few bullish elliotticans left, Tony has made calls that include: The
bottom in 2009 and the top in 2011 in the stock market. He has a rabid following
and is very gracious and open to all who wish to learn about Elliott Wave.
5.) "Mr Cow" www.mooooocows.com

2 year Ex-subscriber and ex-friend of Ted and Wavegenius.com. Yes, he's in
big trouble...but..if only he came out and apologized publicly for maliciously try-
ing to steal customers, and the libelous statements he's been planting we'd throw a
possible court case out. Like Ted said on his chat room earlier this month "..I am
very quick to accept apologies regardless of what they did", he'd welcome him
back...as well as drive a huge amount of traffic his way to help him out. Drop the
ego man, and apologize. It's that simple. The name will replaced with his name,
and his domain will be prominently displayed on this very visible article.
207
The World's 5 Worst Elliotticians
5.) (Tie) Shmav-e Q-Bert aka "The Redneck Rock"
"...Yeah.. I was making twenty thousand a ye.. month!"

"...In fact, I won the Pulitzer Prize that year! Yeah, that's the ticket! And then
my cousin died!.."
Is this "80%-100% Accurate" ?
1-2 long positions, 1-2 short positions on the same trading vehicle...1-2 of the 4
is a profit, 1-2 are losses..in the sane world where 1 + 1 = 2, that's 25%-50% profit-
able. But in his world, 1 + 1 = 3, and 80%-100% profitable..and he'll make you be-
lieve it.
Another "80%-100% Accurate" claim: 3 scenarios in one very visible article
"could go up, could go down"...one scenario is vaguely correct, but 2 are com-
pletely wrong.
1 + 1 = 3. Move on now. How do you make money with this? You don't. 5.)
(Tie) Sid "The Kid" www.elliottwavepredictions.com
I present to you in all his glory, the king. That "BIG ARROW OF DOOM
POINTING DOWN IN JUST ABOUT EVERY CHART" guy.
You probably know him already...over and over and over gain . Yes, all you
gotta do is look...and laugh. Here's one of his brilliant charts from Aug 2012.
4.) Glen Neely www.neowave.com

You thought elliott wave was confusing? Well, want to make it 10X worse? Try
"neowave"...this dude is the source of all the "XYZ" idiots you see on many
208
elliott wave blogs....nobody can make heads or tails of this garbage, but his
readers just look for a target and they're happy. I really have no clue myself what's-
goingoneither. Here'sasampleofoneofhismegablowncalls:
Called June 2009 a major top before S&P would drop to 500 lol 3.) Steve
Hochberg Elliottwave.com
Mr. Hochberg, the sidekick of Prechter, has been blinded by Prechter for
years..obviously since he's worked with him for years now. Hochberg stays mar-
ried to his bearish wave counts, and is a broken record. He'll call crashes repeat-
edly like Mr. Prechter until a crash does happen, and he gets praised for it. His
method: Keep calling for something that will happen eventually, and eventually
you'll be right.
2.) Daneric at Danericselliottwaves
[pic and comment from Investimonials.com]

Daneric studies all of Elliottwave.com's material like no other human...but
that's not a good thing. He also "invents" wave counts that stray far far away
from the golden rules set by R.N. Elliott. He'll twist his counts so that they con-
form to his permabear view. I mean, he REALLY twists his counts. He also
dresses up his charts so that he "appears" smart. The funny thing is, nobody..not
even the most proficient elliotticians can understand what the hell he's talking
about. The herd that follows him only looks for that red arrow that points down,
and it makes them feel happy. That's as far as it goes with Daneric.
1.) Robert Prechter Elliottwave.com
209
Wallstcheatsheet.com Article: Is Elliott Wave Theory High Priest Robert
Prechter Certifiably Insane?
Ah, Robert Prechter. There are very strong rumors that he's plagiarized (the
rare "good" calls he's had) Ted Aguhob for years. His 2009 bottom call was suspi-
ciously created just an hour after Ted Aguhob's 2009 bottom call video on you-
tube. Prechter has feared Ted and has even gone as far as to get his employees to
e-mail Ted whenever he undercuts them on pricing. Prechter is a media darling
and like Hochberg, will repeatedly call crashes until one happens. For Prechter, it
took 23 years until he was right from the low of 1987 until the start of 2000.
Prechter has a very dedicated following, and that's the scary part. There have been
many ex-subscribers who have almost gone bankrupt based on Prechter's perma-
bear views. Like Daneric, Prechter "invents" new wave formations to conform to
his views. He's rumored to be a lunatic, but a very intelligent lunatic. When you
reach the lunacy levels that Prechter has, you tend to get a following like he has.
The World's Top 5 Elliotticians/Elliott Wave Analysts
1.) Ted "gem-x" Aguhob WaveGenius.com
210
C H A P T E R 25
Youtube Greatest
Hits!
Please note: This section will get very large in the coming days as of Dec 12,
2013..but my transcriber is taking her merry time creating the transcriptions of
the youtube videos...I will be sending you this section via PDF on email when it
is done.
Here’s a text translated version of some amazing youtube calls I made

over the years time stamped on that site, and how I did it..
The Facebook October 23, 2012 32-33 call when FB had just closed
that day at around 19.58:
Youtube link to watch video: http://www.youtube.com/watch?v=I8WQ-

Ne4pZk#t=172
“Facebook earnings were flat and a and beat by a penny on earnings.. 

The big point is that they’re gaining huge traction on their mobile ads. 
Internet companies are all stating that ... yahoo and google are falling be-
hind in mobile. 
They have not found a strategy to monetize mobile ads, and Facebook did
211
it. 
If Google and Yahoo can’t find a way, who has? FACEBOOK! 
They’re up 13% after hours and near the top of the 4th wave or B wave..
What’s interesting from the IPO it looks like 5 waves down with a trun-
cated 5th wave. 
That’s amazing which makes it a perfect impulse.. 
I was thinking about buying around 17 on a 5th wave low, but I thought it
was a risky 
trade at that point.. 
If GOOG and Yahoo are struggling to gain traction with mobile and Face-
book has.. 
they’re doing something really good obviously.. 
Google and all those companies should be looking at Facebook and how
the strategy 
was developed and implemented... 
Fundamentally that’s a big turning point for Facebook stock. 
Facebook could actually turn into a momentum stock.. 
I think it can gap up above 23 tomorrow and take out the top of the 4th
wave... That’s basically 1-2-3-4-5 down, and if retraces .618 it could go
back to 32-33 so 
this could actually turn into a momentum stock in the next few months
and I’m gonna be watching it. 
If it takes out 23 there’s a chance of 33 because this is 5 waves down on
FB Fundamentally it’s a big turning point on the stock on earnings.. 
212
They said FB is no longer a threat to google anymore but aparantely they
are now!..”
Update Dec 11 2013: FB crossed 32-33 and did actually become that
huge momentum stock I was talking about last year. It got to the upper
50’s before correcting in a Wave 4 move. As you you guys can tell, I take
into account fundamentals as well when I make my bottom calls on
stocks or major indices...they are very important for me, and is one of the
“wind behind the sails” observations I make...that big note on that one
earnings report is what gave me the confidence to make that call, along
with the huge reaction to earnings..
213
Now the 100% Accurate Vimeo “Top 10 Picks” VIDEO!
Here’s what happened:

100% Accurate (based on price action, and/or price targets) 
What happened in this video? 
TSCO was 54 hit 75 (called 70) 
LNKD was 187 hit 250 (called 250) 
SHW 183 to (unknown) 
ALXN was 99 hit 125 (called 140-150) 
AMGN 108 to 120 (called 185) 
BIIB 213 to 263 (called 260-270) 
V 167 to 206 (called 210) 
MA 535 to 738 (called 620 min high 1000) 
GOOG 881 to 1030 (called 1300 min, highest 2000) 
PCLN was 701 to 1100 (called 1700)
Link: https://vimeo.com/64960487
214
Here’s the rough transcription:
Top10
Here is the wave genius top 10 *0:05*, these are actually the top 10
companies that I found of any index, any sector anywhere and out of the
past several hours of research looking at articles, charts and many of the
factors for about 5 hours, since I woke up this morning around 11 or 10,
11 I’ve been researching about the 10 best companies, there’s actually 20
and it was hard to waddle it down to 10 but based on the chart and based
on the fundamentals and based on everything, the top 10 companies that
I think in the planet, the best top 10 companies in the entire planet, well
in the US stock exchange , in the US markets. Starting with number 10
have you guys ever heard of the stock that’s TSCL tractors Supply Com-
pany. This redefines the grinding three *0:56* since 2008. This redefines
grinding three, this is a grinder, this is what the market is probably going
to be doing in the next 10 years, grinding like this, look at the grind,
grind *1:10*,correction, grind, correction. *1:13* of this area here is a way
for *1:16* the highest *1:17* will be by 130 to 140 so they’ve still got
about 30-40% upside in TSCL and this is a four. But this area right here
is wave one, wave two, the highest target they are going to be about 225,
so if you hit a double from here or hit 130 to 140 you can collect enough
in the wave two. But in other case there is still either 30% upside mini-
mum or a double from here in TSCL. The grinds like they did in the past
several years have a lot of potential to do that.
215
The next stock is LinkedIn, number 9 on the top 10 list, so if basically
if LinkedIn 0 to 120, the highest targeted, this is a two from 120 to about
58, the highest target they are going to have is about 250 to 275 in their
third wave, these wave run from zero, wave one, wave two, wave three, if
the start wave runs from 58 to 125 the highest target they are going to
have will be between a 210 and a 220 if this is wave one flat till wave
three. The fact that the *2:10* really helps, especially in the market is that
*2:23* but again if this wave one, wave two, wave three, the highest target
will about 250 to 275 or if this is wave one, wave two 58 t0 125, if it is
wave one, wave two, wave three the highest target will about 210 to 220,
so now the case would be 10% upside or 30% upside; wave one, wave two,
wave three, very strong stock.
Next company on the list is *2:50* Williams, yes. This right here rede-
fines grinding three, that is a grinder, this is as grinding as you can get, a
grinder from 68 t0 183 which is unbelievable, this is called a grinder. So
essentially, this is wave one, wave two, wave three to heaven. The highest
target they are going to have will be about, let see…it started from 20 ac-
tually, at first it was 20 *3:14*. Essentially this grinding *3:38* has sur-
passed three from heaven, three from heaven would have been 133 but it
has surpassed that by a mile, if this continues to grind like this, this is a
grinding *3:48*, this redefines what grinding *3:49*. It has surpassed
three from heaven or 2.618. The reason why it’s so low on the list is that I
don’t know where the target is. *4:02* based on the fact that it keeps
grinding up but I put it at number 8 because I couldn’t figure out where
the target was because it has passed three from heaven, that’s number 8
216
on the list, so it went from literally 68 to 183 in the past year or a year and
half, that’s unbelievable. It should be number one but I put it at number
8 because I don’t know where the target is.
Number 7 on the list is ALXN or Alexon Pharmaceuticals; this is num-

ber 7 on the list. What’s great about this stock is that it has grinded for a
long time, since 2009 it has grinded, corrections are very shallow but first
correction got from 120 to 82, this correction here could be a wave two
which is amazing about the stock collection because it’s a correction
*4:57*from 120 to 83 could have been a wave two until a wave three, so
this is wave one from 20 to 120 and moved up *5:07* wave one to above
120, the highest target they have would be about 250, so this is wave one,
wave two, wave three. Highest track record will be 250 but if this correc-
tions are *5:18*, the highest target they are going to have would be about
140 t0 150. So either it has upside from or it’s going to break 115 first or
113. If it takes down 113, all those *5:29* would come into play. So if it
takes down 113, the highest target would have *5:35* would be about 140
to 150 but the third wave as high as 250. So it can almost triple from here
or almost double from here. Yes, very strong stock and that do number 7
on the list.
Number 6 on the list is *5:49*, another biotech. if we go back 10 years

or 11 years, *6:04* was actually left for dead for a long time, *6:07*, high-
est target would be…so if this is wave one, wave two on to three from
heaven, the highest target they would have for *6:33* would be 183 but
*6:38* right now and in probably deep force and it’d probably be traced
217
around 98 but if we can take out 115 that 185 chart would come to play,
so wave one, based two, wave three based on an 11 year chart, that’s
*6:53*, can you believe that, can you believe this is *6:56*. Like *6:58* to
2012 there was nothing, it was the *7:01* stock ever, it did nothing and all
of a sudden *7:04*. I personally don’t know fundamentally why *7:08* is
doing this, I don’t know, vie done a research on *7:12*. Why is biotech on
fire? And there is no specific reason why, you just have to go with the
trend basically.
Number 5 on the list is bio gen, biotech again. It’s up on the list be-
cause it got first wave from 40 to 110, I know this is a small *7:34*, if you
start from 40 to 42 to 110 in the first wave, *7:42* there will be wave one,
wave two travel from 110 to 40, 43 to 110, 110 minus 43 **7:53*, it’s actu-
ally surpassed 1.618. if this is wave one, wave two, wave three, it sur-
passed 1.618 which was 190 or 193, it surpassed that, so the next *8:13* is
three from heaven, *8:18…*, the highest target would be approximately
260 to 270, so there is still another 30-40% upside. The reason why this is
the highest biotech on the list is because I can clearly see the pattern, I
can see wave one, wave two, wave three and since I have a target of 260 to
270 *9:12* 30-40% upside from here, so bio gen is just comparable coz all
these biotech are really strong. That was number 5 on the list.
Number 4 is, of course I know you guys have been watching this stock,
its VISA. VISA is not a definition of grinding three, this is a grinder, this
redefines grinder. Literally it does not leave trace at all. VISA, the first
wave was about 55 *9:48…*, so its actually surpased1.618 around 155, so
218
this is 1, 2, 3 *10:11…* but its surpassed that, so this isn’t a three from
heaven, the target would be as high as **** 210, the reason why it’s so
high on the list number 4 is because I can clearly see a pattern here;
wave one, wave two, wave three and I can clearly see that it’s surpassed
1.618, so three from heaven would be210, this is a very strong company;
1,2, 3. So based on this chart the highest target would be about another
40% upside to around 210 to 220 or three from heaven. Yeah this is VISA,
it’s a credit card company, it’s practically a blue chip, and it’s a no brainer,
its VISA, everybody use VISA so it’s like, it’s almost a no brainer.
Number three on the list is the mighty MasterCard, number 3 Master-

Card. This is a very powerful chart. So if you start the first wave from
about 35 to 315, 315 minus 35 *11:33…*, the highest target would have
been ***…, so if this is wave one, wave two, wave three the target is ** 570
so there is still about 5% upside based on this but VISA is on a three
from heaven ok and if we start the first wave from zero to 315, the highest
target would be *12:42…*, the highest target if it started from wave one
to wave two to wave three, if it starts from zero to 315 would be about 620
in MasterCard but if it is a three from heaven, the absolute and most
*13:19* for MasterCard would be 1000, ***. The reason why MasterCard is
so high on the list is that I can clearly see wave one, wave two, I know it’s
a third wave, no doubt about it in the third wave and its out piece in the
market by far and it is grinding, its grinding three. So the highest abso-
lute target would be about 950 to 1000 in a three from heaven. I believe
this is a three from heaven because it’s out piecing everything and it’s a
very powerful stock, its easily one of the top companies in the world in
219
terms of growth and the chart is obviously amazing, it’s like a no brainer
blue chip stock.
Now for number 2, number 2 on the list is *14:16*, number two on the
list is the mighty Google. The reasons why I have Google so high on the
list is because I can clearly, no doubt about it see a pattern. First wave of
100 to 750, 650 points, dropped in the perfect zigzag to wave two. So wave
one, wave two perfect zigzags to wave three and broke out at the top of
the wave one which is very important because this sets up a long term
third wave. So if Google went from, travelled 650 points for the IPL
*14:50*, the highest target they are going to have would be 1300. So this
is wave one, wave two, wave three *14:58* would be 1300 in goal but if we
start from zero to 750, the highest they are going to have would be
*15:17* 1500; 1300, 1500 or the absolute highest target would be 2000, so
1200, 1300 and 2000 by targets. The reason why Google is way up on the
top of the list is because I can clearly see the pattern; one zigzag two wave
three, that is a no brainer third wave, no doubt about it and the target is
1200 to 1300 to 2000, that’s why its number two on the list.
And number one place is, you would never believe this, it is Priceline,
you know why, because the first wave is 50 to 800, almost or 775, Kind of
wave two zigzag to a third wave. That *16:19* up 12345 and a shallow ***.
The reason why I love this chart is because it’s got five waves up; 12345
and a zigzag wave too and now it took out *16:33*. So if you take out 775,
the highest target *** would be *16:41*, it would be as high as 1700, If it’s
*16:52* probably 2500. Priceline has probably the strongest chart of every
220
stock I’ve ever seen because it has a clear *** up, clear cut is exactly of
two shallow wave two clear cut and it’s not taking out the top of the wave
one and the third wave is the strongest wave, so from 50 to 775x1.618
would be either 1700 or 2500 no ***. So the number 1 pick Priceline,
number 2 pick Google, number 4 pick MasterCard, number 4 pick VISA,
number 5 pick Bio gen, number 6 pick *17:37*, number 7 pick Alexon,
number 8 pick *17:45*. Number 9 pick LinkedIn and number 10 TSCL.
The biggest reason I was able to call these pattern so easily is simple.
1.) The wind was behind our sails..ala the 3rd wave was just starting,
and I had confidence in that we were in a 3rd wave move, AND these pat-
terns were clear cut.
2.) Across the board were zigzags and cup and handle Wave 2’s..turns
out I timed this video perfect...unplanned however, but the time was awe-
some.
I have way more stuff that I will be transcribing, so this book will con-
tinue to grow and grow and grow..
221
C H A P T E R 26
The Fin 462 Contest!

Win A Lifetime Sub!
“..This is a copy of the mysterious Fin 462 file discovered on Google by a loyal
subscriber...the rumor is that a professor from American University is teaching an advanced class
completely about my work..here’s the text portion if it. Very strange, very cryptic! I have yet to
figure out who or where it’s coming from, but if you look carefully it might be from 2009 to
2010. I don’t know what he’s saying myself, but there’s some pretty deep comments on it. It’s a
pretty amazing thing to have a college professor at a top college teaching an advanced topic..around
YOU. Amazing right? People pay big bucks to attend American University...
-Ted
(E-mail me at Ted@wavegenius.com to win!)

Exclusive Contest time!
Can’t make heads or tails but it’s cool to
look at..free LIFETIME ($1999.95 value)
premium subscription to
Wavegenius.com...to ANYONE who can
figure out the author of this very file first!
222
“FIN 462
Use http://www.freestockcharts.com/
Fibonacci Geometry reference -
http://www.elliottwave.com/tutorial/lesson8/8-1.htm
Fibonacci Calculator
http://www.actionforex.com/resources/tools/fibonacci-calculator-200603205
723/
Keep current on Wavegen’s posts at http://elliottwave.info/ . In a Word docu-
ment to be turned in the
last day of class, document (copy/paste) all his market comments and major
market charts as depicted
below. Provide your own comments to aid in your understanding of his tech-
nique. Elliott wave requires
skill and subjectivity in market forecasting. It is extremely important to provide
your own charts
(copy/paste) to assist in your understanding of his analysis as I do below.
Observations of Wavegen’s Trading Technique

!
He provides rich market insight throughout the day (and nightly Youtube vid-
eos) at no charge
easily worth tens of thousands of dollars given his level of expertise / track re-
cord
!
223
Trader , not an investor (80% winning trades, limits losses on losing trades)
though his trading
techniques can be applied to any time frame making it useful for investors as
well
o Trades short-term using typically 10-day charts with 1-minute bars for entry/
exit
decisions
! Makes use of longer time-frame charts to gain a perspective of the “bigger
picture”
!
Does not buy/short a diversified portfolio
o Trades only a single security at a time
!
Uses Elliott Wave complemented with Fibonacci targets to assist in properly as-
signing wave
counts and making retracement/impulse projections [Per Wavegen, each
method used in
isolation is inadequate]
http://mathforum.org/dr.math/faq/faq.golden.ratio.html
http://www.maths.surrey.ac.uk/hosted-sites/R.Knott/Fibonacci/fibnat.html
http://www.textism.com/bucket/fib.html
Phi and Beauty
http://www.beautyanalysis.com/index2_mba.htm (Our Research)
Academic research (Elliotwaves/Fibonacci and Market Prediction)
http://www.aeconf.net/Articles/May2006/aef070110.pdf
224
http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6TVG-4N6
FFRS-
8&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&_docanchor=&view=
c&_searchStrId=115052941
1&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_
userid=10&md5=c517a984a
1cd2b5b5cbda3255ba67742
http://etd.ohiolink.edu/send-pdf.cgi/Lakshminarayanan%20Sriram.pdf ?acc_
num=ohiou1127333497
http://arxiv.org/ftp/physics/papers/0603/0603065.pdf
http://www.ballarat.edu.au/ard/itms/publications/researchPapers/Papers_20
03/03-13.pdf
Rebuttal
http://www.socionomics.net/pdf/Fibo_Statistics.pdf
!
His approach to Elliott Wave analysis is highly simplistic compared to others
well-known
elliotticians (ex. Pretcher, Neeley)
!
Examines a market in both directions (up analysis, down analysis)
o Never forget a market can move in either direction (up/down) no matter how
strongly
an individual feels as to where it may go.
!
225
Doesn’t over-analyze (force-fit wave counts) the intricate details of wave counts
(use of simple,
colored rectangles)
o Enters market near market close (30 minutes or less remaining in the trading
session)
(see trade on 1-4-2010 where he entered the market 9 minutes prior to the
close) on
Wave 3 breakouts (see COMP 12-21-2009, SPX 12-22-2009) OR the market
closes near
the previous impulse wave’s termination price (near 100% retracement of a cor-
rective
wave)
o Note a breakout of a previous impulsive wave ensures the developing impulse
wave is at
least (and hopefully) a W3 or W5 AND NOT a “failed fifth” W5 (See 12-22-
2009 RAMP
daily bar symbol scan).
! Definition - A “failed fifth wave” is simply a W5 that does not extend past
W3.
!
Exits positions after an average of a few trading days
o Exit Rule = How close to Wave 3 target?
!
Looks for confirmation in COMP, DJIA and SPX market indexes (not a re-
quirement to trade)
!
226
Very disciplined trader, waits patiently for desired market setups (reference 12-
21-2009
comments )
!
Trades stock options as opposed to stocks
o Generally selects volatile, high volume technology stocks to trade options (un-
less a stock
is setting not only shorter-term 10-day impulse wave breakouts, but also longer
term
market breakouts - see )
!
Examines numerous timeframes, but trades the 10-day chart for Wave 3 break-
outs
!
Market momentum shifts in the direction of a retracement if over 61.8% of
the prior wave
(W1,W3,W5) is retraced.
o If the market continues to a 78.6% retracement of the previous wave, expect
the market
to move to at least a 100% retracement (potential for a breakout at that level)
o Corrective moves (Waves 2 and 4) generally end in the “38.2% to 61.8%” re-
tracement
range
! Wave 5 targets are difficult to predict

o One such target is W5 = W1
227
! Wave 3 targets are much easier to predict than W5
o Examples
! Wave 3 = 1.618 X Wave 1 (Note: “1/1.618 = 0.618”)
! Wave 3 = 2.618 X Wave 1 (Note: “1/2.618 = 0.382”)
! W4 target range = 38.2% of W3 to “end of w4 of W3” (see December 28,
2009)
o A “Full Flat” W4 retraces 38.4% of W3 (see December 30, 2009)
11-13-2009
11-16-2009
11-17-2009
11-18-2009 (5-Day, 1-minute chart)

In Wavegen’s chart analysis below, “If squared area is W2,” means pink = “w5
(= failed 5th) of W1 of
larger degree”
So W1 = is represented by the colored rectangles (w1,w2,w3,w4,w5 [=failed
5th]) = (2205-2147) = 58
If a W2, it should likely hold a 61.8% retracement of W1 = 2205 - (0.618)(58)
= 2169. Though it could
move to the bottom of W1 as a maximum and still be classified as a W2.
11-19-2009 (Daily chart) - In the chart below, note the above chart represents
the 5 daily bars prior to
the last daily bar = 11-19-2009.
228
11-20-2009 (1-minute chart)
11-23-2009 (2-Day, 1-minute chart)
11-24-2009 (5-Day Chart)

11-25-2009
11-29-2009
11-30-2009
12-1-2009 (1-month)
12-2-2009 (5-Day)
12-3-2009 (5-Day)
12-4-2009 (5-Day)
12-7-2009 (5-Day)
12-8-2009 (10-day)
12-9-2009 (5-Day)
12-10-2009 (5-Day)
12-11-2009 (10-Day)
12-14-2009 (10-day)
229
Wave-gen’s long purchase was made under the assumption the market was in
Wave 3 up and about to
breakout above the high on 12-4-2009.
12-15-2009 (5-Day)
In the 12-15-2009 video discussion
http://elliottwave.info/blog2/2009/12/15/elliott-wave-forecast-for-
12-16-09-supportbreakout-levels-for-spx-dji-comp/ for 12-16-2009 he com-
ments, “ I thought the
highlighted area [prior to today’s market activity] (shadowed area in my chart
directly below)
represented a Wave 2, but it turns out it was a Wave 4 because of the fade from
intraday highs today
(12-15-2009).”
My interpretation of wave-gen’s comment on the video for the market on 12-

16-2009
If the above shadowed area was a Wave 2, Wave 3 would extend beyond Wave
1’s length and it does
not.
Also the 12-15-2009 fade from intraday highs would have to be the beginnings
at least (or likely end) of
corrective Wave 4. Since originally supposed Wave 3 does not fit the bill for the
longest of the of Wave
1, Wave 3 and Wave 5, it must be Wave 5 and the immediately previous correc-
tive wave a Wave 4.
230
The fade from today’s highs is a C-wave with the opening gap down represent-
ing the A-Wave.
So when he bought GOOG yesterday near yesterday’s market close, he
thought we were nearing a
breakout of Wave 3 up. Had the market continued to rise from the morning’s
open gap down, we could
be in a Wave 3 up [which was what wave-gen was assuming]. The retracement
from the 12-4-2009 high
broke through 78.6% and was approaching setting a new high [above the 12-4-
2009 high]. This is when
wave-gen made his purchase. A new high was established 12-15-2009, but it is
likely the end of B-wave.
12-16-2009 (10-day)
My Chart w/ 61.8% Retracement from beginning of Wave 1 to end of Wave 5
Nasdaq - 3-month daily chart

Ascending triangle (Potentially ABCDE)
http://elliottwave.info/blog2/2009/12/17/elliott-wave-forecast-for-12-18-09-
umm/
The video analyzing today’s market is a must hear!
231
Due to the fact there is no identifiable W2 in today’s and yesterday’s intraday
action, it could be all
representative of a Wave 1 down [began early Dec 16 in chart below]. If so, his
comment, “we may be
doomed” means there is much downside if in fact this is simply all a Wave 1
from early Dec 16. It
actually does not mean traders will be doomed. It simply means long investors
will be hurt if this is true
in the near term. If the market now turns down, the trading will simply play
the Wave 3 breakouts to
the downside. He also noted the market is hovering near its 78.6% retracement
level.
My 10-Day chart of SPX
5-Day Nasdaq Chart
My personal analysis of the COMP Daily 3-Month chart if we are currently in

an upward W3
Note: If the market broke the ascending triangle pattern to the downside today,
it would have been an
ABCDEF ascending triangle pattern with a breakout to the downside.
Breakdown of Ascending Triangle “ABCDE”
Grey = W2 = (A-wave in ascending ABCDE triangle pattern)
232
B (yellow), C (green), D (turquoise) = w1 of W3 (“C” can’t be “w3 of W3” be-
cause “w1 of W3” is longer)
E (pink) = w2 of W3
Last 2 white bars = beginnings of W3 (w1 of W3)
OR
(The following agreed with Wavegen’s evening market video interpretation at
highest-upward-3-targets-
for-spx-dji-comp/ )
Grey = W2 (= A-wave in ascending ABCDE triangle pattern)
B (yellow) = w1 of W3
C (green) = w2 of W3
D (turquoise) = “ww1 of w3” of W3 (“D” can’t be “w3 of W3” because “w1
of W3” is longer)
E (pink) = “ww2 of w3” of W3
Last 2 white bars = Breakout of ABCDE ascending triangle pattern = possibly
a “ww3 of w3” of W3
My verification of W3 Target High
A different site’s interpretation

Today’s opening up gap in the NASDAQ Composite means that last week’s
2220.40 high was
wave 3 of the ending diagonal pattern, one of the potentials we discussed Fri-
day evening. The
233
fifth wave of an ending diagonal oftentimes ends in a “throw-over,” which de-
scribes a “brief
break of the trendline connecting the end points of waves one and three. The
gap preceding
today’s throw-over should be an exhaustion gap, indicating termination of the
wave structure. A
close back under the trendline confirms that the diagonal is complete and clos-
ing the open gap
at 2211.60 would confirm that the gap was indeed an exhaustion gap. The
NASDAQ should
then swiftly retrace to the November 2 low at 2024.20, at a minimum. Since
the ending diagonal
is terminating the rally at a larger degree, the decline holds much larger bearish
potential. The
maximum upside possibility for wave 5 is 2284.50, after which wave 3 would be-
come the
shortest of waves 1, 3 and 5, which is not allowed under Elliott’s rules. The
most ideal near-term
scenario would be for prices to push into the 2243-2252 area, the top end of
which is the
Fibonacci .618 retracement of Primary wave 1 (circle) down. Thereafter, the

Composite should
reverse and close under the upper trendline, confirming a top
Dec-22, 2009
Dec-22, 2009
234
From: wavegeniusdotcom@aol.com [mailto:wavegeniusdotcom@aol.com]
Sent: Tuesday, December 22, 2009 2:38 PM
To: gemxwaveinc@yahoo.com
Subject: Bought 1600 ISRG at 297.50
ISRG closed at the 10-day highs - bought on a confirmed 52-week breakout
“Ready to pop = market is at breakout levels (such as IBM).” If it breaks-out to

the upside, it will set a
new 52-week high from last week and a new multi-year high.
IBM daily chart over several years (12-22-2009)
Wavegen’s sector scan for 12-22-2009 (All 10-day intraday charts)
Note why Wavegen labels RIMM (see above sector scan) currently as a w2
down (of W3 or W5)
ABC corrective wave from Dec 11 to early morning Dec 17 (where Wave 1 be-
gins. It ends at morning
open of Dec 18)
Currently in a corrective w2 pattern down subdividing into an “abc” pattern
Based on just the this 10-day chart and the above analysis, the end of the up
wave at market close on
Dec 10 was either a W1 or W3
So we have a primary corrective ABC wave pattern (= W4 or W4)and a lower-
degree corrective “abc”
235
wave pattern in the 10-day chart
Note why Wavegen labels GG (see above sector scan) currently in as 4-5 down
The market is clearly in a corrective abc (clearly identifiable) up wave against
the downward trend. This
abc pattern is the subdivision of W4 (wc is approaching the length of wa).
W3 (in the direction of the trend) was strong down (Dec 15 to Dec 16) and
longer than W1
W2 was “complex” (went below end of W1)
[“wa of W2” late morning Dec 11 to late morning Dec 14]
[“wb of W2” late morning Dec 14 to late Dec 15]
[“wc of W2” late Dec 15 to late market open Dec 16]
W1 (market open Dec 10 to late Dec 11)

Note why Wavegen labels IBM (see above sector scan) “Would break at 130”
This simply means IBM would breakout above the most recent high = 130
shown within the 10-day chart
[52-week high]. No wave definitions are defined by Wavegen.
130 is also a multi-year high.
12-22-2009
SPX near market close on 12-22-2009 (5-day, 1-minute chart)
236
Wavegen was looking for a retracement (“w2 of W3”) today (i.e., W3 subdivid-
ing into w1,w2, etc), Note
the rectangle for W3 is a little displaced as it should start at the low of W3.
Note all the choices of symbols in today’s after-market scan (12-22-2009) sym-
bols using RAMP pattern
recognition software. In this instance, I was searching for recent breakouts (one
of Wavegen’s
requirements in trading W3’s is a breakout above/below W1). Note a breakout
of the previous
impulsive wave ensures the developing wave is at least (and hopefully) a W3
and not a “failed fifth” W5.
Russell 1000 stock scan
Daily bars chart
(Tomorrow = the last trading day prior to Christmas)
From: Wavegeniusdotcom@aol.com [mailto:Wavegeniusdotcom@aol.com]

Sent: Thursday, December 24, 2009 8:44 AM
Subject: Sold the ISRG at 304.10, paid 297.50, profit $10,560
Profit $10,560
He sold because NASDAQ was nearing his first upside W3 target.
For a discussion of his targets, see the following video.
237
new-3rd-wave-targets-for-
spx-dji-comp/
Based on 3-month COMP daily chart (using W1 that began on 11-2-2009)
Based on 3-month COMP daily chart (using “w1 of W3” that began on 11-27-
2009)
COMP 3-month daily chart (12-24-2009)
To me, the chart below appears we are in a “w3 of W3”
(12-24-2009) COMP intraday high = 2,282.44
Nasdaq - 12-28-2009 (Intra-day chart)
Note: “Previous 4” = End of w4 of W3

Nasdaq 10-day 1-min chart (12-28-2009)
End of w4 of W3 (12-28-2009)
SPX 5-Day 1-minute chart (Posted intraday on 12-29-2009)
238
Market close 12-29-2009
12-30-2009
Nasdaq 10-day 1-minute chart
The comments below were not time-stamped, though they were made about 1-
hr prior to the market
close.
12-30-2009 SPX Market Close
Below is a classic case of revisiting a presumed wave count. Notice in the last
60-minutes of the trading
day on 12-30-2009 developing W4 dipped into W1 territory which cannot hap-
pen. Thus, W3 is
subdividing into 5 waves of lesser degree (“w1 of W3,” “w2 of W3,” “w3 of
W3,” “w4 of W3,” “w5 of
W3”) [Labeled W3 is now “w1 of W3” and we are currently in “w2 of W3.” If
correct, this means the
new year will soon begin with “w3 of W3.” Again, this is the 60-min chart.].
SPX 12-30-2009
1-4-2010 SPX 11am CST intraday chart.
239
Note the clear abc zigzag pattern comprising corrective W2 as compared to the
stylized Elliott wave
diagram below. Note also in the stylized chart, W2 is a corrective flat while W4
is a corrective zigzag.
SPX 10-Day Chart (1-4-2010)

From: wavegeniusdotcom@aol.com
[mailto:wavegeniusdotcom@aol.com]
Sent: Monday, January 04, 2010 2:51 PM
Subject: Bought 2300 AAPL shares at 214.01
Market Close - COMP 10-day Chart
1-4-2010
Market Close - AAPL 10-day Chart

1-4-2010
Long-term Chart - AAPL
(This chart was posted 1.5 hours prior to the close)
My personal note: Another possibility is we are currently in a “w3 of W3”
240
W1 = 1115 to 1134
W2 = 1134 to 1130
“w1 of W3” = 1130 to 1136
“w2 of W3” = 1136 to 1130
“w3 of W3” = 1130 to currently developing
Posted prior to Market Close (1-6-2009)
Not sure where he came up with his W5 target.

The chart below was several hours after the above post. It simply indicates the
61.8% Fib retracement
holding as described.
SPX 10-Day Chart

(Posted about 2 hours prior to market close 1-7-2009)
Whether drawn intentionally incorrect or not, note the “green” wave begins
just below 1132 at the
pivot low. This makes the “yellow” wave complex.
“So much worse” referring to the higher than anticipated unemployment num-
bers released before the
241
market opened.
Nasdaq 5-Day 15-min Chart (1-8-2010 11am CST)
Nasdaq 3-Month daily chart

(1-8-2010)
Nasdaq 10-Day Chart (Intraday)

1-11-2010
Loss = (2300)(214.01 - 209.20) = $11,063
Nasdaq 10-day 1-min Chart

1-11-2010
I assume the above to mean the shaded areas from left to right are W3, W4
and W5. The currently
evolving corrective wave down is WA. This would mean wave 3 to which he re-
fers is “w3 of WA.”
Nasdaq 5-day 15-min Chart after market close

1-12-2010
Nasdaq 10-day 15-min Chart (Intraday)
242
1-14-2010
Nasdaq 10-Day 15-min chart

1-14-2010 at Market Close
From: wavegeniusdotcom@aol.com [mailto:wavegeniusdotcom@aol.com]

Sent: Tuesday, January 19, 2010 2:46 PM
Subject: Bought 2300 shares of AAPL at 215
Nasdaq 10-Day 15-min chart
DJIA 10-Day 15-min chart

AAPL 10-Day 15-min chart

Nasdaq Intraday 10-Day 15-min Chart

1-20-2010
Nasdaq Mkt Close 10-Day 15-min Chart
243
1-20-2010
AAPL Mkt Close 10-Day 15-min Chart

1-20-2010
DJIA 5-Day Chart (1-min bars)

1-21-2010
Long-term GOOG Chart (Daily bars)

1-21-2010
“Wave 3 Targets from Hell” Weekend Video

W3 = (2.618)(W1)
http://elliottwave.info/blog2/2010/01/24/elliott-wave-forecast-for-1-25-10-d
ownward-3-from-hell-
targets-for-spx-dji-comp/
SPX 5-Day Chart (15-min)

1-25-2010 early morning
244
Copyright Wavegenius.com and
Ted Aguhob
© Copyright Wavegenius.com And Ted Aguhob
ccxlv
This Book Is Dedicated To My
Best Friend Evan Hale Bliss
Thank you Evan for being there when I needed you...being best friend..lead singer and co-songwriter. I
pray for your wife and family in their griefing period. Thank you for letting me play the bass in our re-
cordings with a pick! -
-Ted
Rest In Peace, Evan
ccxlvi

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Mastering The

WRITTEN AND EDITED BY TED AGUHOB

In the past 3 years from 2011,

Anyway, You could be a long time subscriber or follower of my work. But

But luckily you've discovered my work, and

The 90’s. $2000 into $34,000.00!

I'd speculate $5000.00 into Sports

The experience and thrill I gained in speculating was a great experi-

Any- way, I would watch

called "margin". She

Party like it’s 1999 and QCOM!

Reality Check, and Y2K

2001 And The Forced Discovery

RSI...Stochastics...Candlesticks...fibonacci...a nd finally (drum roll) Elli-

March 2001 And The “Birth Of A

In June of 2001, I made yet another massive trading mistake...Silicon

But it was done so hastily and quickly that I

count. The software said "Wave 3", so I decided "hey a computer

Sept 2001 And The Call “Heard

That e-mail list was the cornerstone for the

2002. $99 into $50,000.00

Sept 2001 unrav- eled, and the mar-

before I was going to launch the site, the freemasons contacted me

out...Elliott Wave was all I needed.

03-04. $2540 Into $45,000+. It’s

In January of 2003, I decided to create a very tiny account...so tiny that

barely go into margin. In fact it was around $2020.00. About $2000.00

month. I wanted to preserve the rest of the money

I made in 2002 and not use all of it.

god. ..especially during a nasty recession.

What changed was this. Instead

On the long side, I rode the early 3rd waves

of gold stocks like NEM, GG and

And on occasion the random hous-

In 2003, this technique became UBER-lethal. The $2020.00 (edit: this

$250,000.00...by 2005 I begun my three year venture into Forex, website

What Works And Doesn’t Work In

There's really no need for fancy Fi-

This is a biggie for me every expiration week, typically the Wednesday

Arms Index - (TRIN):

The TRIN is calculated: Arms Index = (# of advancing issues/# of de-

Extreme readings can be note able however but... this is more of a

Bollinger Bands - Basically, it involves a stock or index reaching ex-

This is excellent for finding extremes, at the tops or bottoms of the

Can have reliability during periods of high vola-

consistent, are the three black crows:

(bullish) (bearish): bullish and bearish en-

Gann. (secret = ( )..involves

MACD - during peri- ods of high volatility, a

MA, for a sus- tained period

Put Call ratio:

The most power- ful P/C Ratio

Relative Strength Index

This is another one of my favorites that have proven to help guide my

Slow and Fast Stochastic

During periods of huge volatility and elasticity, channeling can be ex-

Skitch.com: This screen shot software allows me to post charts in de-

Update 2013: My con- tent has overwhelmed

Bigcharts.com (Now using Stockcharts.com)

The software I use is simple. It's Bigcharts.com. I used to trade with

Bigcharts gives you MACD, RSI,

I recommend using Bigcharts, and when counting and finding those

Yes, I use Briefing.com to discover stocks that

The 90’s. $2000 into $34,000.00! 

Gann.  (secret = ( )..involves

.....What Is A Third Wave? 

ZigZag after Wave 1 

or 30 day charts, so keep that in mind. 

charts, so keep that in mind. 

The 5 Wave Pattern 

.618 Wave 2’s 

.382 Upward W4 

and it’s a C wave or worst yet..a DOUBLE B wave at .618. 

frequently in the past 5-6 years. 

In 1933 the truncated 5th wave low was 50.16. 

1 PM-2:30PM “Big Guy Sell Time” 

Trading Fed Meetings 

Important Seasonal Time Frame - October to April 

The Best Months Of The Year 

The Worst Months Of The Year 