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Protect Your Health Along with Your Wealth
Epidemics have often followed severe stock market declines

By Bob Stokes
2/21/2014 5:00:00 PM

Epidemic disease is often associated with severe bear market declines. See an example from history, which shows a stock market price pattern that could have a parallel to today.

Filed Under: Elliott wave, FTSE, Robert Prechter, social mood, U.S. STOCK MARKET

Category: Stocks

Hey, FTSE 100 Pundits, Take a (Rate) Hike
Many believe that there’s a consistent correlation between a rise in bank rates and a fall in the Footsie – but it’s not so

By Nico Isaac
8/15/2013 6:45:00 PM

When the FTSE 100 plunged in its biggest single-day drop in two months on August 15, the usual experts looked no further than the Old Lady of Threadneedle Street, otherwise known as the Bank of England. More specifically, when the Bank of England increases interest rates, the Footsie falls; ergo, a rate cut triggers a FTSE rally. Right?

Filed Under: Bank of England, europe, european markets, financial forecast, FTSE, Interest Rates, monetary policy

Category: European Markets

(Video) Huge Sell-Off in FTSE 100: What a Third Wave Looks Like
Third waves are the strongest and fastest parts of a five-wave Elliott wave sequence.

By Vadim Pokhlebkin
8/15/2013 4:45:00 PM

To those familiar with Elliott wave analysis, the phrase "worst intraday fall" sounds like a third wave -- the strongest and fastest part of a five-wave Elliott wave impulse.  Watch this free video to understand more about the FTSE’s sharp drop on August 15.

Filed Under: Bank of England, Bear market, DAX, Elliott wave, Elliott Wave trading, european markets, FTSE, Swiss Market Index (SMI), technical analysis, trade targets

Category: European Markets

(Inside Look) The FTSE's Long History of Peaking Prior to Major Tops in the Dow
From the July 2013 Financial Forecast

By Steve Hochberg and Pete Kendall
7/1/2013 1:15:00 PM

(From the July 2013 Financial Forecast) Sometimes looking intently at other key indexes can provide insights into the potential for the U.S. stock market. This is particularly true in the current environment in which so many differing markets are positively correlated.

Filed Under: Dow Jones Industrial Average (DJIA), financial forecast, FTSE

Category: Stocks

The FTSE's Fall: Will It Be Just a Footnote? (Update)
Only those who saw the beginning of the move can identify its end

By Nico Isaac
6/20/2013 12:45:00 PM

In late May, the media frenzy over the FTSE 100's uptrend was akin to commotion over Kate Middleton's (the Duchess of Cambridge) baby bump. And while the the royal heir's gender was still unknown, the mainstream financial experts were pretty darn certain about the stock market's identity – a bouncing baby bull.

Filed Under: Elliott wave, europe, european markets, financial forecast, FTSE, fundamental analysis, momentum

Category: European Markets

UK Banks: Back on Solid Ground?
Our chart of the FTSE 350 Banks Index is only the beginning of the discussion

By Nico Isaac
6/7/2013 3:15:00 PM

In May 2013, Britain's top five banks announced that they will meet capital levels required by the Bank of England without having to sell shares. "This is confirmation that the capital debate is over," began one news source. "The funding problem in the UK is over." So, are they right?

Filed Under: Bank of England, banks, Elliott wave, europe, financial forecast, FTSE

Category: European Markets

A Wall-to-Wall Selloff in European Bourses
European Short Term Update used Elliott wave analysis to anticipate the reversal

By Nico Isaac
5/23/2013 4:15:00 PM

On Thursday, May 23, the ticker tape of European stock markets resembled the jumbotron scale on the weight-loss reality TV show The Biggest Loser -- one triple-digit number after another. Unlike the TV show, however, the sharp stock market declines were not a sign of improving health. According to one news report, brokers across the pond went on a 24-hour damage control assuring their "investors to keep calm, carry on, and don't panic."

Filed Under: CAC40, DAX, Elliott wave, euro stoxx 50, europe, european markets, eurozone, FTSE, Nikkei, U.S. Federal Reserve (the Fed)

Category: European Markets

The UK Avoids Recession. Proof Positive of Recovery?
And why taking the experts at their word may not be the safest decision.

By Nico Isaac
4/25/2013 5:00:00 PM

In the morning hours of April 25, the UK financial community was a picture of Hunger Games-like angst. Huddled masses stood around the Office for National Statistics, waiting nervously to hear whether the name -- Britain -- would be drawn to participate in a highly dreaded recession.  

Filed Under: credit crisis, europe, european markets, financial forecast, FTSE, great depression, recession, U.S. STOCK MARKET

Category: European Markets

European Markets: Are 'Happy Days Here Again'?
Page one of The European Financial Forecast: A chart of Euro Stoxx volatility reveals if a drop in fear means a rise in stocks.

By Nico Isaac
3/7/2013 10:15:00 AM

When the 2007-2009 financial crisis nearly unravelled the global economy, many investors hid under their virtual beds, and parked the bulk of their wealth in safe-haven products. Now it's 2013, and a recent Wall Street Journal article describes an almost emboldening epidemic affecting the world's market participants known as "fear fatigue."

Filed Under: DAX, europe, European debt crisis, european markets, financial forecast, FTSE, sentiment, VIX, volatility

Category: European Markets

A Fundamental Lesson from Italy's Recent Political Deadlock
European Financial Forecast uses Elliott wave analysis -- not election results -- to identify the near-term stock index trends on the Continent.

By Nico Isaac
2/27/2013 5:30:00 PM

On Feb. 26, Italy's much-anticipated Parliamentary Election ended in an impasse, when dark horse candidate/comedian Beppe Grillo earned enough votes to prevent the two leading parties from gaining a majority. In the immediate aftermath of the election, European stock markets took a synchronized leap south in single-day declines from 1.5% to 5%. On that day, the mainstream experts were unanimous: Italy's election outcome flat out bearish...

Filed Under: Bob Prechter, CAC40, DAX, Elliott wave, euro stoxx 50, europe, european markets, eurozone, FTSE, fundamental analysis, Prechter's Perspective, Robert Prechter, social mood

Category: European Markets

Starry-Eyed Surprise: The Economy Does Not Lead Stock Markets
This chart of four critical UK economic indicators sends a powerful message about the Continent's key stock markets.

By Nico Isaac
2/21/2013 5:30:00 PM

Conventional economic wisdom says economic indicators drive stock market trends. If the economic news of the day -- employment, manufacturing, home sales, etc. -- is positive, then "Joe Pundit" says that's why stock prices rallied. If those numbers are negative he says that's why prices fell. Case in point, the following news stories regarding the recent performance in London's FTSE 100:

Filed Under: DAX, economic indicators, Elliott wave, europe, european markets, eurozone, FTSE, fundamental analysis, Prechter's Perspective, Robert Prechter

Category: European Markets

European Stocks: EuroStoxx 50 Shows a Topping Picture
The recent weakness in European stocks was expected

By Vadim Pokhlebkin
1/30/2013 5:15:00 PM

The news reports from Europe on January 30 said that European stocks took a hit after the release of weaker-than-expected U.S. GDP number for the 4th quarter of 2012. Yet Elliott wave patterns in the EuroStoxx 50, pan-European index of the continent's 50 largest stocks, are showing that the recent rally has been on its last leg for a while.

Filed Under: AEX, CAC40, DAX, Elliott wave, Elliott Wave trading, european markets, FTSE

Category: European Markets

The Most Noteworthy Takeaway from the 2013 World Economic Forum
A perfumed outlook doesn't mean the economy passes the smell test

By Bob Stokes
1/29/2013 5:30:00 PM

Harsh economic realities versus the disconnected and extreme economic optimism at Davos should serve as an alarm. But the World Economic Forum is not the only place where economic optimism is in overdrive. Get an independent perspective on global markets and economies.

Filed Under: all the same market theory, CNBC, debt crisis, economic indicators, Elliott wave, european central bank, European debt crisis, eurozone, FTSE, Greek debt, International Monetary Fund (IMF), sentiment

Category: Global Markets

Europe's Return of Risky Debt: Sign of Hope or Dangerous Omen?
EWI's new, November European Financial Forecast highlights the resurgence of a risky debt -- and its implications for the region

By Nathaniel Williams
11/12/2012 1:30:00 PM

By all accounts, the economic and financial realities in Europe seem dire. Yet if you look at the behavior of some credit traders in Europe, you'd never know it. Is their new-found optimism toward risky debt a sign of hope -- or a dangerous omen?

Filed Under: AEX, Bank of England, CAC40, DAX, Elliott wave, eu, euro/USD exchange rate, european central bank, European debt crisis, european markets, European Union (EU), eurozone, FTSE, Greek debt

Category: European Markets

European Stock Markets: Time to Buy - or - Buying Time?
EWI's November European Financial Forecast reveals whether the worst is finally behind the Continent's stock markets

By Nico Isaac
11/9/2012 5:30:00 PM

When the major European stock markets emerged from the usually nightmarish months of September and October 2012 relatively unscathed -- the mainstream experts took it as a clear sign that the duck-and-cover years were finally behind them. Here, the following string of recent news items captures the renewed enthusiasm for the buy-side of European bourses...

Filed Under: Elliott wave, europe, european central bank, european markets, FTSE

Category: European Markets

Europe in November: Bye, Bye Bear-die?
Inside EWI’s latest, November European Financial Forecast…

By Nico Isaac
11/2/2012 5:00:00 PM

For 4 years, the European economy has been shrouded in the darkness of recession. But now, according to the mainstream experts, tangible "rays of hope" that the worst is finally behind the Continent are finally shining through. For example...

Filed Under: AEX, Bank of England, CAC40, DAX, diversification, Elliott wave, europe, european central bank, European debt crisis, european markets, eurozone, FTSE

Category: European Markets

European Bulls & Bears at an Impasse: Who Will Take the Next Move?
Inside EWI's new, October 2012 European Financial Forecast...

By Nico Isaac
10/5/2012 5:45:00 PM

If Europe's finanical landscape were a chess board, the 2 opposing players -- a bull and a bear -- would be at a seeming stalemate. So, do we have a draw? The brand-new October 2012 European Financial Forecast says -- absolutely not...

Filed Under: AEX, Bank of England, CAC40, DAX, Elliott wave, european central bank, European debt crisis, european markets, European Union (EU), eurozone, FTSE, Swiss Market Index (SMI)

Category: European Markets

Europe in September: One of the Most Critical Months Yet
Inside EWI’s latest, September 2012 European Financial Forecast…

By Nico Isaac
8/31/2012 8:30:00 PM

September is to the European economy what November is to the U.S. Presidential election. To wit: September will see the final results of the Continents’ long and bitter campaign against its long-time rival, deflation...

Filed Under: AEX, CAC40, DAX, Elliott wave, eu, euro, euro stoxx 50, euro/USD exchange rate, europe, european central bank, European debt crisis, european markets, European Union (EU), FTSE

Category: European Markets

Do Bans on Short Selling Work? See for Yourself
One look at a chart -- and the answer is clear

By Vadim Pokhlebkin
8/9/2012 7:30:00 PM

When panic and fear grip the market, the authorities try their best to stop the bleeding. Their go-to move is to ban short selling of stocks -- a popular speculation method practiced by traders who believe stocks should fall further. To help stop the current wave of the crisis, the eurozone financial authorities have banned short selling, too. Writes our August Global Market Perspective...

Filed Under: AEX, CAC40, DAX, diversification, Elliott wave, euro stoxx 50, eurozone, FTSE, investment strategy, short selling

Category: Global Markets

What's a Central Bank To Do?
What if the ECB has an ace up its sleeve, and the next round of stimulus FINALLY does the trick?

By Vadim Pokhlebkin
8/1/2012 12:15:00 PM

With so much focus on the hopes of further economic stimuli by central banks, it's important to consider what difference (if any) the already HUGE amount of economic stimulus has made. Let's look at Europe.

Filed Under: AEX, Bank of England, Ben Bernanke, CAC40, DAX, diversification, Elliott wave, europe, european central bank, European debt crisis, european markets, European Union (EU), eurozone, FTSE, golden ratio, Interest Rates, International Monetary Fund (IMF), monetary policy, quantitative easing, Swiss Market Index (SMI)

Category: European Markets

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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.