Why is The Theorist 20 Percent Longer This Month?

Home > Stocks
Why is The Theorist 20 Percent Longer This Month?
Stock Prices Rub Elbows with a Long-term Trendline

By Bob Stokes
Tue, 22 Feb 2011 16:30:00 ET

Get investable insights sent to your inbox at least once a week – for free. Challenge the way you think about investing with The EWI Independent.

Privacy

Robert Prechter's Elliott Wave Theorist is a monthly publication. On occasion, breaking market developments will warrant an Interim Report before the next monthly Theorist publishes.

What is rare, however, is for Prechter to add new charts and commentary to the Theorist soon after the monthly issue has already "gone to press." Yet that's what happened with the recently published February issue.

Why did he do so within hours of posting the issue?

Answer: he saw a highly relevant price juncture in the stock market's long-term chart pattern, approaching now.

The market analysis in this new section should give pause to investors who have been swept up by the recent market rally. In another section of the issue, Prechter offers this comment:

"The speed of the [market's] advance has convinced many people that it is analogous to the bull market liftoffs of 1932-33 or 1942-43. But back then, dividend yields were sky high and P/Es were low."

In turn he provides an example which is more analogous to recent market action, and says that today's market is in "a larger version" of that earlier time.

This important added section consists of six paragraphs and two charts. One of those charts covers the entire page width and almost half the page vertically: It shows a Supercycle-degree resistance line that spans some 80 years.

These new charts and commentary tell a market story which does a lot more than answer dinner party questions such as, "What do you think the market will do next week?"

The entire February Elliott Wave Theorist -- and especially the added section -- takes a much broader view. But that broader view is on a "collision course" with today's conventional wisdom about the stock market. Read the recently published February Elliott Wave Theorist risk-free by following this link.

Tags: Dow Jones Industrial Average (DJIA), Elliott Wave Principle, Elliott Wave Theorist, New York Stock Exchange (NYSE), Robert Prechter, trendlines

May 13-16

Las Vegas Money Show

July 10-13

Freedom Fest Conference

Stay Ahead of the Trend in U.S. Stocks

EWI's Financial Forecast Service equips you to think, trade and invest independently from the crowd. Here's what you'll get, risk-free:

Short Term Update -- Intensive forecasts and analysis 3x/week for U.S. stocks, gold, silver, bonds and the U.S. dollar.
Financial Forecast -- In-depth, intermediate-term perspective on U.S. stocks, gold, silver, bonds and the U.S. dollar.
Theorist -- Bob Prechter's monthly big-picture insights.

Put the Financial Forecast Service on your screen in minutes, risk-free>>

Most Read

Highest Rated

Free Video Course

Learn the Why, What and How of Elliott Wave Analysis

Financial media use news and economic events to explain market moves. Steer clear of this misguided approach. Take part in the Elliott Wave Crash Course to learn what really moves the markets.

The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.