When the dot-com bubble burst in 2000 we immediately saw the beginning of a downturn which was also followed by 911 which inevitably led to more money printing and the lowering of interest rates. This helped the market recover but it also created a bubble which then popped leading to the GFC meltdown.
Fast forward to now and we are basically in the same situation where we have seen the problem which was the pandemic that led to the reaction by way of stimulus programs which include money printing for QE, bond-buying programs, and stimulus checks to name a few.
The big difference now is that all of the methods for stimulating the economy have been exhausted which has led to a perfect storm scenario where all these different markets have caused another bubble that will again need to be resolved.
To some this may seem like a doom and gloom scenario but when you look back through history you will notice that this is just the way it goes. 3 steps forward 2 steps back because the progression of the human race has never happened in a straight line. If you look back through history you will notice this has been the way that it has always been.
This is why the identification of the waves through the AriasWave lens is so vital because it's given me the ability to identify these patterns which have led to being able to apply some logical thinking and reasoning as to what has happened and what this will inevitably lead to in the future. For some unknown reason, the markets always trace out this predictable pattern which gives the analyst the power to make informed decisions about what he or she should prepare for in the future.
Even though this process has been given the name AriasWave, in reality, it is just nature providing answers to those that look for them. The law of polarity is the principle that everything has two poles, for example, positive and negative or masculine and feminine. Nature will always correct imbalances when something has gone too far in one direction; action and reaction.
You must understand that there were forces at work that made Wave B expand in the DOW JONES and global markets that have led us to where we are now. Newton's third law states: For every action, there is an equal and opposite reaction. The statement means that in every interaction, there is a pair of forces acting on the two interacting objects. The size of the forces on the first object equals the size of the force on the second object.
Take for example the Great Depression where the DOW JONES collapsed around 98%; this was an extreme event that would have had tremendous forces behind it, the equal and opposite reaction that occurred afterward is part of the reason why Wave B expanded the way it did. This leads to the conclusion that when Wave B ends over the next year or two there will be another equal and opposite reaction in Wave C. This is the reason you have contracting and expanding corrections which some call wedges or triangles but the reality is that it is these interacting forces that over time balance themselves out so that the trend can continue in order to complete the pattern.
So you can see how this behavior in the waves is happening at all degrees of the trend throughout the entire move up since the 1930's all the way up to where we are today. The pattern is almost complete but we still have a couple of waves to go before it completes. To learn more about exactly where we are today, check out this TradingView idea titled: DOW JONES - Analysis - Why The Coming Move Will Be The GFC 2.0.
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