The Elliott wave principle at work. [MMM]

Back in August of 2015 I provided the model below for 3M corp (ticker : MMM).  Remember, for me red is always the primary model.



Today we see that the pullback expected back then occurred just as the model expected and now we are at new all time highs well above $180, again as the model predicted.  And so here we are in the low $200s.  Cramer is calling a tiny pullback up here "a gift".  I am calling it "a warning".



Cramer is herding with the herd, caught up in the euphoria of share prices that never seem to abate or even take a breath.  But my Elliott wave model says that a major peak is likely very near and that the shares will pull back sharply such that the line passes through both the top and bottom lines of this rising wedge before the apex of the wedge.

That is a very specific prediction based on a model, not on a gut call.  Because I use time tested models I am not affected by the herding mood.  I also know quite rapidly if the current model turns out to be wrong.  Not all scientific hypothesis turn out to be correct!  But a good hypothesis is one which can be tested in a definitive fashion so that the scientist knows to change his thinking instead of heading down a dead end not knowing when to change course (that is how pundits like Jim Cramer operate).

Please note at this point that I have not posted anything here at all about MMM since that 2015 post.  Please also note that the last post was bullish in nature.  So I am not some kind of perma bear.  What are the odds that I will just get very lucky with my 2015 bottoming model and then again just get very lucky in my current topping model with no false steps in between.  About a million to one?  Higher?

People who do not know the power of Elliott waves will think, "that guy has some balls with this prediction or is stupid as Hell".  Maybe the answer is neither.  Maybe the right answer is that I have a ton of experience analyzing wave forms using the Elliott wave principle.  I guess time will tell but if you want to know what I am predicting for other stocks in this market, feel free to sign up for my Elliott wave market timing service using the Subscribe tab above.  If you sign up for the monthly recurring subscription it's only $39.95 per month.  IF you want to go month by month its $54.95 per month.  Either way, quit at any time without questions asked.