Elliott Wave InternationalmyEWISocioniomics.Net

Consumer Confidence Hits a 6-Year High: Bullish for Stocks?
Why, of course it is! But please read on to understand why it's a trick question.

By Vadim Pokhlebkin
5/17/2013 4:15:00 PM

To decipher the meaning of economic reports like consumer confidence is the bread and butter of "fundamental" analysis. Inevitably, positive data are supposedly bullish for the stock market, while negative economic reports are bearish. But is this accurate? What a strange question, you may say -- of course it is! Stocks don't fall after good reports, or rise after bad ones...do they? Well, take a look at these financial news headlines and guess when they were published...

Filed Under: Bob Prechter, bull market, buy and hold, consumer confidence, consumer price index, consumer spending, Elliott wave, market forecasts, U.S. Federal Reserve (the Fed)

Category: Stocks


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


NASDAQ's 15% Drop in 2000: a Snapshot of Market History or a Picture of its Future?
Is increased stock market volatility just ahead?

By Bob Stokes
3/27/2013 5:15:00 PM

From March to April 2000, the NASDAQ declined 15%. Many investors bought the dip in the months after the peak, but it was only the beginning of a larger decline. In the 2000-2002 price plunge, the technology-heavy index lost a whopping 78%. Do investors today have a similar mindset to the prevailing market psychology of 2000? Recent sentiment measures say "Yes."

 

Filed Under: Bear market, buy and hold, Dow Jones Industrial Average (DJIA), Elliott Wave Theorist, financial forecast, history, investor psychology, market crash, Nasdaq Composite, Robert Prechter, sentiment, VIX, volatility

Category: Stocks


Think Lower U.S. Trade Deficit Is Bullish for Stock Market?
The latest figures show that the U.S. trade gap has narrowed, and many see that as a bullish sign

By Vadim Pokhlebkin
1/2/2013 2:00:00 PM

Before you join the crowd in thinking that shrinking trade gap is good for the U.S. economy and the stock market, see this eye-opening chart. 

Filed Under: bull market, buy and hold, Club EWI, deficit, Dow Jones Industrial Average (DJIA), economic depression, Nasdaq Composite, New York Stock Exchange (NYSE), QE2, S&P 500

Category: U.S. Economy


Is Apple's Drop into Bear Market Territory a Harbinger for the Broader Market?
The bearish mood that took a bite out of Apple may tug on the overall market.

By Bob Stokes
12/6/2012 4:30:00 PM

In the past few years, Apple, Inc., stock seemed to defy Newton's law of gravity as it ascended to its all-time intraday high of $705. But in light of recent market action, investors are wondering if Apple can keep up with its hype. The money-manager favorite just had its worst single session decline since 2008. At least one investment letter was not surprised by Apple stock's retreat.

Filed Under: Bear market, buy and hold, Elliott wave, fundamental analysis, hedge funds, market forecasts, Nasdaq Composite, stock indexes, technical analysis, volume

Category: Stocks


Buy and Hold: Why Even Blue Chips Can Bust Your Portfolio
Why "Blue Chip" does not mean "safe"

By Bob Stokes
8/16/2012 5:15:00 PM

The problem with a "buy and hold" strategy is that once a share begins to fall, the investor never knows how far the price will drop. The stock might take years to recover, if it ever does. EWI's indicators reveal that...

Filed Under: 1929 Stock Market Crash, buy and hold, Citigroup, Dow Jones Industrial Average (DJIA), Elliott wave, General Motors (GM), South Sea Bubble

Category: Stocks


Day of Reckoning Approaches for Public Pension and Hedge Funds
Learn how to protect your portfolio in the tumultuous financial times ahead

By Bob Stokes
7/20/2012 4:45:00 PM

Make no mistake; the buying opportunity of a lifetime is ahead. As an investor, your goal is to be ready for it. Before then, U.S. markets will likely experience severe turmoil, and most investors will throw in the towel (that is, if the markets don't knock them out first). Many investors had a similar mind-set as stocks were approaching...

Filed Under: buy and hold, Elliott wave, hedge funds, herding, investment decisions, investment strategy, market forecasts, mutual funds, pension funds, personal finance, risk management, stock indexes

Category: Stocks


Asian-Pacific Stocks: Don't Get Too Comfortable
Egypt, Israel and Turkey: This month's Asian-Pacific Financial Forecast also includes forecasts for those markets

By Vadim Pokhlebkin
6/29/2012 5:30:00 PM

It's always darkest before the dawn, goes the saying. Yet if that's true, then wouldn't the opposite be just as true? "Asian Stocks Head for Biggest Gain This Year on Europe Progress‎," reported the June 29 San Francisco Chronicle. How much longer will we see "sunny" headlines like this one? The latest, July issue of our Asian-Pacific Financial Forecast shows you what no one else does...

 

Filed Under: ASX All Ordinaries, Bank of Japan, BRIC, buy and hold, Chinese markets, diversification, Elliott wave, Indian markets, investment strategy, SENSEX, Shanghai Composite Index, Taiwan index

Category: Asian Markets


S&P 500: Sound and Fury for What?
After 12 years, investors came up empty handed. What's next?

By Bob Stokes
6/21/2012 2:00:00 PM

Ever since 2002, S&P 500 investors suffered through years of hand-wringing for nothing. The sad truth is...

Filed Under: buy and hold, CRB index, Fibonacci, investment decisions, long-term trend, market forecasts, mutual funds, S&P 500, volatility

Category: Stocks


India, Pakistan, Sri Lanka, Indonesia: How Elliott Wave Analysis Turned BULLISH When Few Dared. Part I
EWI's Asian-Pacific stock market analyst explains the unique benefits of Elliott wave analysis for emerging market investors

By Vadim Pokhlebkin
4/26/2012 3:15:00 PM

Today, you truly have the world at your fingertips. It’s easier than ever for you to get exposure to global markets, especially given the explosion in ETFs. But how do you decide which market is most worthy of your attention? And how do you know if your forecasting source is qualified and objective? With that in mind, I sat down with EWI's Mark Galasiewski, a monthly contributor to the "Asian-Pacific Stocks Section" of our Global Market Perspective.

Filed Under: Asia Dollar Index, ASX All Ordinaries, Bank of Japan, BRIC, buy and hold, Chinese markets, diversification, Elliott wave, Elliott Wave trading, emerging markets, Indian markets, investment decisions, investment strategy, Nikkei, SENSEX, Shanghai Composite Index, stock indexes, Taiwan index, technical analysis, technical indicators

Category: Global Markets


Are Stock Buybacks a Bullish Sign? See This Chart for Answer
As is often the case, mainstream finance is looking at the wrong trend indicators

By Vadim Pokhlebkin
2/15/2012 5:15:00 PM

Most investors see share buybacks like this one as bullish for the broad stock market. Says one investment strategist: "If the corporate community really agreed on the idea we’re heading to a recession, they wouldn’t be buying back their stock." That logic makes perfect sense…until you dig a little deeper.

Filed Under: bull market, buy and hold, Dow Jones Industrial Average (DJIA), Elliott wave, Nasdaq Composite, S&P 500, Wall Street

Category: Stocks


Can You Bank on Blue Chips for the Long Run?
Even blue chips are vulnerable when change comes.

By Bob Stokes
1/9/2012 6:00:00 PM

Companies favored by the conventional wisdom as good for the long run may not even live to see the "long run," let alone perform well along the way. In the just published January Financial Forecast, you'll see a chart of a well-known "blue chip" which appears to be ready for a "meltdown"...

Filed Under: buy and hold, Dow Jones Industrial Average (DJIA), Elliott Wave Theorist, financial forecast, Gold

Category: Stocks


What Were YOU Reading at the Start of 2011? Chart-stopper alert!
Here's what helped EWI analysts set the stage for falling stocks when almost everyone else was going "all in"

By Editorial Staff
10/17/2011 1:15:00 PM

Do you remember mainstream financial news from back in January and February of this year? It had one clear message: the bear market in US stocks was D-E-A-D. Here, the following headlines from the time say plenty...

Filed Under: Bear market, bull market, buy and hold, Dow Jones Industrial Average (DJIA), Elliott wave, Elliott Wave Theorist, Nasdaq Composite, Robert Prechter, S&P 500

Category: Stocks


See How an Investment Can Lose 90% -- Over and Over
It Happens Time and Again When Manias Reach Their Ends

By Bob Stokes
7/27/2011 5:15:00 PM

A few who take the first "bath" realize that it's time to get out. But many "hang on" all the down. Some will try to catch the bottom -- repeatedly. But to their dismay, the price keeps falling...
 

Filed Under: buy and hold, Citigroup, Fannie Mae, mania, risk management, stock indexes, trading lessons

Category: Stocks


400 Analysts and Economists Are Bullish. But Before You Join Them, See This Chart
Most investors have very short memory. You don't have to be one of them

By Vadim Pokhlebkin
5/4/2011 5:30:00 PM

Please read these financial news headlines and then take a guess as to when they were published...

Filed Under: bull market, buy and hold, credit crisis, Elliott wave, housing prices, International Monetary Fund (IMF), nonfarm payrolls, U.S. Federal Reserve (the Fed), U.S. Treasuries, unemployment

Category: Stocks


Earthquake, Tsunami, Oil-shock, Middle East Wars, Debt Melt-Downs
Will the Market Reward That Much "Unbending Loyalty"?

By Nico Isaac
4/8/2011 4:30:00 PM

The public's commitment to US equities is starting to resemble a country western song. Investors have chosen to "stand by their stocks," come what may in global politics and finance, including one of the most politically unstable climates in recent history, as civil protests and military conflict spreads across the Middle East and North Africa. But like the lyrics says: Been down so low, there's only one place left to go -- up.

Filed Under: bull market, buy and hold, Dow Jones Industrial Average (DJIA), eurozone, housing prices, inflation, investor psychology, pension funds, sentiment, U.S. dollar, Wall Street

Category: Stocks


Happy 2nd Anniversary, "Bull Market": How Many More Do You Have Left?
Elliott Wave International's March 2011 Financial Forecast research publication tells you whether or not the stock market's upside momentum really supports the case for a long-term bull market

By Nico Isaac
3/10/2011 10:45:00 AM

March 9 was the second anniversary of the rally in U.S. stocks off their March 9, 2009 bottom. And, judging by the slew of "Happy Birthday, Bull!" headlines splashed across the mainstream financial media circuit, one can safely assume that the last remaining fence-sitters have finally jumped off and joined the "buy-and-hold" party. But that's exactly the problem with conventional approach to market forecasting: As a rule, mainstream bears get more bearish at the bottom, while bulls only turn more bullish as market tops. And when the turn comes -- surprise!

Filed Under: bull market, buy and hold, diversification, Dow Jones Industrial Average (DJIA), Elliott Wave Principle, Elliott Wave Theorist, Elliott Wave trading, momentum, quantitative easing, Robert Prechter, sentiment

Category: Stocks


What Does It Mean, "The News Doesn't Make the Market"?
It's not the news that creates trends in stocks and other financial markets

By Vadim Pokhlebkin
2/15/2011 9:30:00 PM

At EWI's Message Board, we receive great questions from subscribers and free Club EWI members daily. Here's one that deserves an expanded answer: "Can you please explain what you mean by the phrase, 'The news doesn't make the market, rather the market makes the news'?" This is a radically different concept than the conventional assumptions about how the financial world works. EWI's president Robert Prechter pioneered the very idea that the news is irrelevant to markets, and has written extensively about it; he calls it "socionomics." Here's an essay by Prechter on the topic.

Filed Under: bull market, buy and hold, Campaign for Independent Thinking, Dow Jones Industrial Average (DJIA), earnings, Elliott Wave Principle, Nasdaq Composite, Robert Prechter, S&P 500, social mood, socionomics, trading lessons

Category: Stocks


Robert Prechter Dispels 10 Popular Investment Myths, Part VIII
The world's foremost Elliott wave practitioner tests economists' "Claim #7: ''Peace is bullish for stocks'” -- and brings you another surprising conclusion.

By Vadim Pokhlebkin
12/27/2010 1:45:00 PM

This is Part VIII of the series "Robert Prechter Dispels 10 Popular Investment Myths," where EWI president uses two charts to dispel another investment myth: that times of peace are bullish for stocks.

Filed Under: 1929 Stock Market Crash, buy and hold, Dow Jones Industrial Average (DJIA), Efficient Market Hypothesis (EMH), Elliott Wave Principle, fundamental analysis, Random Walk Theory, Robert Prechter, S&P 500, social mood, socionomics

Category: Stocks


New Report: It's Dangerous to Diversify – Find Out Why

By Gary Grimes
12/15/2010 1:45:00 PM

Despite near-unanimous endorsement among mainstream advisors, the strategy of portfolio diversification has a huge, glaring flaw: Namely, when large sums of liquidity begin to flow into global investment markets, formerly disparate trends become strongly correlated. And markets that go up together ultimately go down together; in turn, the value of diversified portfolios goes down with them.

Filed Under: buy and hold, Campaign for Independent Thinking, diversification, liquidity, risk management

Category: Stocks


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© 2013 Elliott Wave International

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.