U.S. Stocks and "The Point of Maximum Financial Risk"
Extreme emotions can signal turning points in the market.

By Bob Stokes
6/17/2013 4:15:00 PM

The May Elliott Wave Theorist states that "Investors have no memory of prior mood extremes. They always forget how they felt at such times, so they are free to feel the same way again and again." Learn how this truth relates to the current market. 

Filed Under: CNBC, Elliott Wave Theorist, Fibonacci, investor psychology, market cycles, market forecasts, U.S. STOCK MARKET

Category: Stocks

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Why Brilliant People Often Fail in Financial Markets
Isaac Newton lost $1 million in the South Sea Bubble. He said financial manias are driven by "human folly."

By Bob Stokes
6/10/2013 5:15:00 PM

If intelligence translated to investment success, then most professors and scientists would be wealthy. If anyone ever had "brains," it was Sir Isaac Newton. He lost $1 million in the South Sea Company bubble. Those who fail in financial markets often assume that cold reason governs market prices. But the opposite is true. 

Filed Under: Elliott wave, herding, history, investor psychology, mania, Robert Prechter, social mood, U.S. STOCK MARKET

Category: Stocks

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Get Ahead of the Crowd BEFORE It Moves
Use the Wave Principle to identify the trend of investor behavior.

By Bob Stokes
6/7/2013 5:15:00 PM

Individuals in the market crowd unconsciously take their cues from one another. Most feel like they don't know enough to make independent decisions. So, they look to others for signals -- in the hope that others know more. In turn, the process becomes self-reinforcing.
Robert Prechter put it this way ...

Filed Under: Elliott wave, herding, investment decisions, investor psychology, Robert Prechter, U.S. STOCK MARKET

Category: Classic Prechter

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What You Can Learn by Studying Financial Manias of the Past 400 Years
In the early 1980s Prechter forecast a big bull market, and also said the most severe bear market in US history would follow.

By Bob Stokes
6/5/2013 5:15:00 PM

In 1982 Robert Prechter called for a strong bull market. Most everyone else was mired in the memory of the 1970s, and expected little if anything from stocks. At the same time that Prechter called for a big bull market, he also said the most severe bear market in US history would follow. Has that epic trend change already occurred?

Filed Under: Bear market, bull market, conquer the crash, Elliott wave, history, Robert Prechter, U.S. STOCK MARKET

Category: Stocks

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Bullish Sentiment Makes National Front Page News
What magazine covers say about sentiment.

By Bob Stokes
5/31/2013 5:00:00 PM

Paul Montgomery's magazine cover sentiment indicator applies to various financial assets: stocks, gold, real estate, oil, bonds, etc. Sentiment indicators provide useful insights into the market. But you also need to know about the market's technical indicators. Both are sending an urgent message. 

Filed Under: CNBC, Elliott wave, Magazine Cover Indicator, mania, sentiment, technical analysis, U.S. STOCK MARKET

Category: Stocks

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Pop Goes the Bull Market: Are Coca-Cola and the Dow Going Flat?
From the May 2013 Elliott Wave Financial Forecast

By Steve Hochberg and Pete Kendall
5/30/2013 5:30:00 PM

(From the May 2013 Financial Forecast) In December 1999, [The Elliott Wave Financial Forecast] made the case for a long-term peak in Coca-Cola stock based on its historic role as a bull-market beverage: “Things really do go better with Coke. Unless, of course, the thing is a bear market. At such times, things don’t go so well, not even for Coke.”

Filed Under: Dow Jones Industrial Average (DJIA), financial forecast, U.S. STOCK MARKET

Category: Stocks

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Why You Should Expect a Change in the Stock Market
Prepare for a transformation that will seem to come from "nowhere"

By Bob Stokes
5/24/2013 4:30:00 PM

Our individual patterns of thought come under a host of strong influences, especially the collective psychology of society. And the social mood that has taken the stock market to recent new highs has been unfolding for several years. But, history also shows that dramatic changes in investor psychology can come quickly.

Filed Under: Elliott wave, history, long-term trend, rate of change, social mood, U.S. STOCK MARKET

Category: Stocks

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S&P 500 Reverses Sharply in Intraday Trading
From the May 22 intraday high of 1686.73, the S&P 500 fell 36 points.

By Vadim Pokhlebkin
5/22/2013 7:15:00 PM

On May 22, U.S. stocks rose at the open but then reversed sharply lower. The move coincided with congressional testimony by the Fed Chairman Ben Bernanke. "Coincided," because the market's mood, visible via Elliott wave patterns, was suggesting a reversal even before Mr. Bernanke's comments. See for yourself...

Filed Under: Ben Bernanke, Elliott wave, Elliott Wave trading, quantitative easing, S&P 500, U.S. Federal Reserve (the Fed), U.S. STOCK MARKET

Category: Stocks

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An Intraday in the Life of the Dow
Charts show how the Fed did not cause the DJIA's intraday drop

By Nico Isaac
5/22/2013 6:30:00 PM

About the time the stock market opened on Wednesday, remarks from two Fed officials denied that the central bank was "ready to consider tapering its bond buying"... And the Dow Industrials rallied 100-plus points in the first hour of trading. At 10:24 am, Fed Chairman Ben Bernanke appeared before a Congressional Joint Economic Committee and said: "Premature tightening would carry a substantial risk of slowing or ending the economic recovery."

Filed Under: Dow Jones Industrial Average (DJIA), Elliott wave, stock indexes, Traders, U.S. Federal Reserve (the Fed), U.S. STOCK MARKET

Category: Stocks

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See Intraday Market Trends from an Elliott Wave Perspective
Before you place another trade, learn about the U.S. Intraday Stocks Specialty Service

By Bob Stokes
5/21/2013 4:15:00 PM

If you're following the stock market's trend mostly between 9:30 a.m. and 4 p.m. eastern time, let Tom Prindaville be your guide. As EWI's Senior U.S. Equity Analyst, he provides subscribers with frequent intraday updates from an Elliott Wave perspective. No one can guarantee a specific outcome -- yet Tom often sees Elliott Wave patterns develop as they've been forecast. When he identifies an intraday impulsive wave, he alerts subscribers immediately. Tom does the Elliott analysis for you.

Filed Under: Elliott Wave trading, market forecasts, technical analysis, trade targets, Traders, trendlines, U.S. STOCK MARKET

Category: Stocks

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Rational Choices, Dirty Needles, and Social Mood
Social Mood Watch by Robert Folsom

By Clifford Smith
5/20/2013 1:45:00 PM

What happens when social mood and healthcare intersect? Read this article by Robert Folsom to find the answer.

Filed Under: socialism, socionomics, The Socionomist, U.S. STOCK MARKET

Category: Socionomics

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Forecasts for the Dow Industrials: Off the Charts and Then Some
If you thought Dow 60,000 was far-fetched

By Bob Stokes
5/15/2013 2:30:00 PM

The February Elliott Wave Theorist noted that "money managers are predicting a Dow as high as 60,000." If you think that is way too optimistic, look at this other forecast.

Filed Under: Bear market, bull market, Elliott wave, investor psychology, market forecasts, Robert Prechter, U.S. STOCK MARKET

Category: Stocks

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How an Instinct Can Be Financially Dangerous
Beware of what accompanies market tops.

By Bob Stokes
5/9/2013 4:45:00 PM

Teenagers dress and talk alike. This natural tendency to conform carries into adulthood. Nowhere is the human tendency to conform more pronounced than in financial markets. Investors instinctively adopt the market views of people they perceive to be "in the know." Learn why this instinct can be financially dangerous.

Filed Under: 1929 Stock Market Crash, CNBC, Elliott wave, herding, investor psychology, Prechter's Perspective, Robert Prechter, U.S. STOCK MARKET

Category: Classic Prechter

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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

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The Lurking Danger Behind Ultra-Low Interest Rates
The quest for higher yield can lead to a damaged portfolio.

By Bob Stokes
4/22/2013 5:30:00 PM

Risk-averse investors who depend on fixed income have been hurt by ultra-low interest rates. To make ends meet, many resort to riskier vehicles like bonds. Some fixed-income investors have been sold on the idea that bonds are relatively safe compared to stocks. But The Wall Street Journal recently noted that, "Safety has rarely been more expensive -- or more dangerous." Learn about two risks that bond investors currently face.

Filed Under: Elliott wave, Interest Rates, junk bonds, money markets, municipal bonds, Robert Prechter, Treasury bonds, treasury yields, U.S. STOCK MARKET

Category: Interest Rates

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Prechter: "I'd Love to Turn Long-Term Bullish Again"
The next buying opportunity is going to be the one of a lifetime.

By Bob Stokes
4/17/2013 4:45:00 PM

Hindsight shows that Robert Prechter's August 1983 then-radical forecast of a "once-in-a-generation money-making opportunity" did happen. Yet that was a two-part forecast, so this question remains: Is the "biggest financial catastrophe" that Prechter foresaw still unfolding, or has the Fed confined the damage to the 2007-2009 financial crisis?

Filed Under: all the same market theory, Bear market, bull market, consumer confidence, consumer price index, deflation, Elliott Wave Theorist, Gold, Robert Prechter, soverign debt crisis, U.S. STOCK MARKET, unemployment

Category: Classic Prechter

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Investors Pile $61 Billion into Stocks (But Look Who's Selling)
Technology executives sell shares at a record pace.

By Bob Stokes
4/12/2013 4:00:00 PM

A financial professional recently opined on television that "You have to be in this market." Investors beat him to the punch. They've piled $61 billion into stock funds and ETFs so far in 2013. Inflows are on track to be the largest since 2000. But not everyone is buying. Learn about one group that's been selling at a frantic pace.

Filed Under: buy and hold, Elliott Wave Theorist, herding, investor psychology, mania, sentiment, U.S. STOCK MARKET

Category: Stocks

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Raise Your Hand if You Believe Earnings Drive Stock Prices
Now, a mountain of evidence proves why this long-accepted belief is sorely misguided

By Nico Isaac
4/9/2013 6:00:00 PM

April is national Finanical Literacy month. With that in mind, we ask one simple true or false question: Do earnings drive stock prices? Wall Street and the financial media think the answer is as obvious as the blue sky on a cloudless day. In fact, when the 2013 corporate earnings season kicked off on April 8, the news was flooded with stories confirming the supreme role of earnings in market trends.

Filed Under: Bob Prechter, earnings, Elliott wave, Elliott Wave Theorist, financial forecast, market myths, Robert Prechter, S&P 500, U.S. STOCK MARKET, Wall Street

Category: Stocks

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Suburban Poverty Up Nearly 64%
If this is an economic recovery, what will the next contraction look like?

By Bob Stokes
3/25/2013 4:45:00 PM

New research shows that poverty has spread faster in the suburbs than the inner city. Many Americans still haven't recovered from the real estate bust. Unemployment and under-employment remain historically high. Robert Prechter writes, "The Fed is doing everything it can to try to keep the credit balloon inflated. But it’s failing, because the markets and the economy are certainly not zooming, despite all the QEs and 0% interest rates." In the new Elliott Wave Theorist, you'll find 11 charts. Six of them, accompanied by Prechter's unique commentary, show why Americans should brace themselves for a major change in the economy.

Filed Under: CNBC, debt, deflation, economic indicators, Elliott wave, foreclosures, housing prices, Interest Rates, liquidity, personal finance, quantitative easing, Robert Prechter, stimulus package, U.S. STOCK MARKET, unemployment

Category: U.S. Economy

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What a Rooster and the Stock Market Have in Common
Both operate on internal clocks

By Bob Stokes
3/22/2013 5:30:00 PM

Like a tree, which grows according to its natural form regardless of the weather, the stock market's progress is also endogenously regulated. Its price pattern forms independently of external events. Japanese scientists have just discovered that another occurrence in nature is internally regulated.

Filed Under: Elliott Wave Principle, market forecasts, Robert Prechter, U.S. Federal Reserve (the Fed), U.S. STOCK MARKET

Category: Stocks

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