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Robert Prechter on Herding and Markets' "Irony and Paradox"
To anyone new to socionomics, the stock market is saturated with paradox.

by Editorial Staff
2/9/2010 4:45:00 PM

"Have you ever watched a dog interact with its owner? The dog repeatedly looks at the owner, taking cues constantly. The owner is the leader, and the dog is a pack animal alert for every cue of what the owner wants it to do. Participants in the stock market are doing something similar. They constantly watch their fellows, alert for every clue of what they will do next. The difference is that there is no leader. The crowd is the perceived leader, but it comprises nothing but followers. When there is no leader to set the course, the herd cues only off itself, making the mood of the herd the only factor directing its actions."

Filed Under: Robert Prechter, interest rates, t-bills, Treasury bonds, Fed, oil, earnings
Category: Stocks


What's Behind The Fall In Oil Prices? See CHART

by Nico Isaac
1/22/2010 4:30:00 PM
In just two short trading days (January 21 and 22) oil prices have gone from boiling to toiling. Crude fell more than 4% to land at its lowest level in one month. According to the mainstream experts, one main factor is to blame for turning the blue skies in oil gray: A doubly-bearish January 21 Energy Information Administration (EIA, for short) report revealing these two details:
Filed Under: Crude oil, oil, Energy
Category: Energy


A Crude Oil Call Then: A Long-term Picture Now
A historical perspective on oil since the American Civil War (CHART)

by Nico Isaac
12/14/2009 4:30:00 PM
I'll cut right to the chase: On Monday, December 14, crude oil prices fell below the psychologically important $70/per barrel mark to close at a fresh, two-month low. It was the market's ninth consecutive down day and the longest losing streak since 2001. As for what caused crude's bearish beating -- the mainstream experts cited one main factor...
Filed Under: Energy, Crude oil, oil
Category: Energy


Oil's Recent Selloff Defies One Kind of Logic (CHART)
... And obeys another

by Nico Isaac
11/13/2009 4:00:00 PM
Just when you think you've got a handle on the way certain fundamentals affect the market of your choice -- POOF! The rules change. Take, for example, the supposed set-in-stone logic that prices of crude oil rise when two things happen: The U.S. dollar loses and gold gains. As recently as late October 2009 -- with oil prices soaring to their highest level for the year -- this correlation was a constant mainstay of the mainstream financial media. Here, the following news sources from the time...
Filed Under: Crude oil, oil, Energy, u.s. dollar, Gold
Category: Energy


If Stocks Tank Shouldn’t Gold Soar?
In a word: No.

by Jeff Reckseit
11/2/2009 4:15:00 PM

Large banks and more recently pension funds have suddenly become infatuated with gold.  They chant the mantras that gold bugs have known for years:  gold is a store of value; owning gold is financial insurance;  an ounce of gold will always buy a good suit.  The idea is that if the economy continues to weaken and share prices decline, a strategic allocation of the precious metal will hedge and offset some of the losses in the financial sector.

Filed Under: Banks, pension funds, Gold, Currencies, oil, Grains, Meats, softs, collectible cars, dollar rally
Category: Precious Metals


Crude Oil Outlook: Check Your Crazy Hat At The Door
Will oil prices revisit $80 soon?

by Nico Isaac
10/28/2009 5:30:00 PM

There are some jobs out there where having a split-personality would seem to actually improve your work performance. What got me thinking about that was the recent Dr. Jekyll and Mr. Hyde-like collage of news headlines regarding the presumed relationship between crude oil and equities.

Filed Under: Energy, Crude oil, crude, oil
Category: Energy


Crude Oil: Is A Breakthrough or Breakdown Coming?

by Nico Isaac
10/13/2009 2:30:00 PM
Over the last three months, crude oil prices have acted like a dog with a shock collar around its neck. One minute it's barreling up a hill at warp speed straight for the mailman at the top of the driveway. And then... ZAP! It's jolted by an invisible electric fence and sent scampering right back down to the place it started. Talking numbers: the market has been range bound between $75 and $65 per barrel.
Filed Under: Crude oil, oil, Energy
Category: Energy


U.S. Dollar: Kiss Goodbye or Reversal at Hand?
Remember how bearish people were on oil ten years ago? Today, it's the U.S. dollar.

by Jim Martens, Senior Currency Strategist
10/13/2009 11:45:00 AM

Remember how bearish people were on oil ten years ago? Today, it's the U.S. dollar. This recent headline on DrudgeReport.com, "Kiss the Dollar Goodbye," complete with a picture of a smooching President Obama, is a fair reflection of the sentiment toward the buck. But here's what it likely means...

Filed Under: u.s. dollar, oil, obama, currency, forex
Category: Currencies


Crude Oil Analysis: No "Funny" Business
Just the facts, please...

by Nico Isaac
8/10/2009 3:00:00 PM
Most of the time, reading the mainstream news articles on a certain financial market is like watching some "Laurel and Hardy" comedy skit of errors. Picture it: The pair attempt to break into a house. Laurel goes in first through a window, which falls shut before Hardy can get through. Then, Laurel walks outside the front door to let Hardy in, only to have it lock on them both...
Filed Under: Crude oil, oil, Energy
Category: Energy


Crude Oil: Tour de Forecast

by Nico Isaac
7/20/2009 3:30:00 PM
According to mainstream economic thought -- fundamentals are to financial markets what tire pressure is to a Tour de France bicycle racer. To wit: Inflated (i.e. positive) news makes it easier for a market to soar up those steep mountain hills (i.e. price charts). AND, deflated (i.e. negative) news makes prices fall behind and struggle to climb.
Filed Under: Crude oil, peak oil, oil, Energy
Category: Energy


Crude Oil Tumbles: How Low Could It Go?

by Nico Isaac
7/10/2009 6:15:00 PM
I'm sorry, but there are only three possible ways a person could NOT know about the "demand crisis of 2009" long since underway in the energy smarkets. To wit: One, said person was born yesterday. Two, said person thinks "Crude" is the name of a Norwegian Heavy Metal band. Or three, said person lives on planet Mars
Filed Under: Crude oil, crude, oil, Energy, demand
Category: Energy


Crude Oil Opportunity: Come On In, the Water's Fine

by Nico Isaac
6/3/2009 5:15:00 PM
According to the financial mainstream, fundamentals are to markets what the moon is to the ocean's tides: Negative data drive prices down and ebbing out; while positive data draw them up and advancing in. Here's the problem: Tides don't regularly shrug-off or ignore the lunar pull. If they did, no one in their right mind would ever go swimming in such unpredictable waters...
Filed Under: Crude oil, oil, Energy
Category: Energy


Russian Stocks: What's Driving the "Mystery" Rally?
How can the country's stocks rally while the economy keeps contracting

by Vadim Pokhlebkin
5/26/2009 3:00:00 PM
To most observers who compare the performance of Russia's stock market vs. its economy over the past couple of years, it must look as mysterious as the proverbial "mysterious Russian soul." See for yourself...
Filed Under: Russia, rts, emerging markets, oil
Category: Stocks


Crude Oil: Is the Bull Market In Black Gold Back?

by Nico Isaac
5/22/2009 5:30:00 PM

Over the last year, the fundamental experts have changed the "rules" of the game regarding Crude Oil quite often. Back in 2008, as prices rallied to never before seen heights, they delegated black gold to official "Safe Haven" duty. After oil took a flying leap DOWN from their mid-2008 peak, the experts renamed the game: Oil, once the VICTOR of recession, was now its greatest VICTIM.

Filed Under: save haven, black gold, oil, recession
Category: Energy


Is The Bottom In For Falling Oil Prices? Find Out NOW

by Nico Isaac
3/10/2009 4:45:00 PM
Over the last year, crude oil has thrown the mainstream energy experts for more loops than a knitting needle. One huge whopper of a loop: the severe 70%-plus freefall in oil prices from the July 2008 high to a recent five-year low...
Filed Under: Crude oil, crude, oil
Category: Energy


Crude Oil, Copper, Corn, and More: All In One Place

by Nico Isaac
3/6/2009 2:00:00 PM
As the lines on your computer screen continually flash red across a large scope of the commodity markets, some of you are probably thinking: "What in holy heck happened to the 'safe-haven' premium of this sector?"...
Filed Under: Commodities, Crude oil, Copper, oil, Corn, bob prechter
Category: Commodities


Crude Oil & Stocks: SEEING Is Believing (Chart)

by Nico Isaac
1/14/2009 5:00:00 PM
According to the mainstream experts, crude oil and U.S. stocks have pulled a major "Star Wars." Meaning: As did Luke Skywalker and Darth Vader, those two financial markets have switched from mortal enemies into eternal allies...
Filed Under: Stocks, Crude oil, dow jones industrial average, oil
Category: Stocks


Crude Oil: A Gusher Of An Opportunity (UPDATE)

by Nico Isaac
12/19/2008 11:15:00 AM

One day, crude oil prices suffer their biggest weekly loss in energy trading history. The next day, crude oil prices soar to their highest level in nearly two weeks. All the while, the global economic slump continued to grow. Any questions?

Filed Under: Crude oil, energy futures, oil, crude
Category: Energy


Stocks & Crude: A "Rare" Alignment?

by Nico Isaac
12/1/2008 5:30:00 PM

According to the mainstream experts, the joined status of stocks and crude (to the downside) is as rare an event as Hallye's Comet. A myth-busting chart of the 52-week correlation between oil and stocks since 1996 strongly DISAGREES...

Filed Under: Crude oil, dow jones industrial average, oil, us stocks
Category: Energy


Crude Oil Prices: About To Cross A Line

by Nico Isaac
11/19/2008 4:15:00 PM

Fact: When crude oil prices were rocketing to never-before-seen heights back in July 2008, the mainstream pundits saw no end to the red-hot winning streak in black gold. Find out how our analysts saw the oil market cross the "line in the sand" from bull-to-bear beforehand...

Filed Under: Crude oil, oil, Energy, Stocks
Category: Energy


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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.