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The New York Stock Exchange Purchase Announcement Sends a Major Market Clue
A big market signal may be overlooked

By Bob Stokes
2/13/2013 5:45:00 PM

There are well-known market indicators which have stood the test of time. Many are technical, some are seasonal and others are sentiment indicators. Yet there's one sentiment indicator that most contrarian investors may overlook. And this one involves the New York Stock Exchange itself. Learn more.

Filed Under: CNBC, Elliott Wave Theorist, financial forecast, investor psychology, Magazine Cover Indicator, New York Stock Exchange (NYSE), sentiment, steve hochberg, stock indexes, technical analysis

Category: Stocks


Looking Down from the Top of a Sky-High Stock Market Indicator
A new spin on the venerable skyscraper indicator

By Bob Stokes
12/5/2012 5:30:00 PM

Did you know you can forecast stock prices simply by gazing upon a big-city skyline? The popularity of the venerable skyscraper indicator has grown over the years, but it's long been a contrarian indicator for Elliott-minded investors. EWI readers have referenced the skyscraper indicator for years. Once again, it appears to be flashing an important signal about a historic trend change on the horizon.
 

Filed Under: Elliott wave, , Magazine Cover Indicator, market forecasts, sentiment, social mood, stock indexes, wisdom of crowds

Category: Stocks


The Expected Housing Recovery Faces a Brick Wall
Re-emergent house flippers are set to flop.

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

Two years before the housing bust became painfully obvious to U.S. homeowners, EWI's publications warned subscribers that the housing market had reached extremes and was about to bust.  Now, lofty expectations for home prices have returned. So have house "flippers." Is it different this time? Is it safe again to speculate in U.S. real estate?

Filed Under: deflation, economic indicators, home sales, housing prices, Magazine Cover Indicator, mania, subprime lending

Category: U.S. Economy


Today's Sentiment Mirrors the Start of One of the 20th Century's Worst Bear Markets
A look at the 1973-74 market serves as a warning

By Bob Stokes
10/26/2012 3:15:00 PM

All agreed: Market prices are headed higher. Yet in that very month, the stock market started a slide. It later became the worst bear market since the Great Depression. The chart shows how mistaken the consensus view can be -- which brings us to today.
 

Filed Under: Bear market, Dow Jones Industrial Average (DJIA), Elliott Wave Theorist, great depression, investor psychology, Magazine Cover Indicator, Robert Prechter, sentiment

Category: Stocks


A Surprising Group of Conservative Investors Is Scooping Up Stocks
Is this a contrarian indicator?

By Bob Stokes
10/10/2012 5:45:00 PM

Extreme optimism among investors is notable enough. Now, a surprising group of risk-averse investors is scooping up equity shares.

Filed Under: central banks, Elliott wave, herding, history, investor psychology, Magazine Cover Indicator, sentiment, U.S. STOCK MARKET

Category: Stocks


Facing the Market's Music: The Mother of All Contrarian Indicators?
Was the extraordinary Facebook hype a sign of unfriendly market days ahead?

By Bob Stokes
5/23/2012 5:00:00 PM

The bigger story goes beyond a rough start for Facebook: the market has lately been unfriendly to several social media stocks. Take a look at this chart and commentary from the...

Filed Under: cultural trends, Elliott wave, investor psychology, Magazine Cover Indicator, Nasdaq Composite, Traders, trading lessons

Category: Stocks


"Dow 15,000": You CAN Judge A Trend By Its Cover
The "magazine cover indicator" is not to be overlooked

By Nico Isaac
2/14/2012 5:00:00 PM

You can judge market sentiment in more ways than one. For example, cover pages of popular periodicals can give you a glimpse of the prevailing mood in the market. When a financial trend is so strong, or in force for so long -- or both -- that it makes the cover, the trend is usually fully acted upon, and therefore close to a reversal. Here at Elliott wave International, we've often used this phenomenon to help us gauge how extreme market sentiment has become -- and therefore, how close is the market in question to a reversal.

Filed Under: bull market, Chinese markets, credit crisis, Dow Jones Industrial Average (DJIA), Elliott wave, Elliott Wave Principle, housing prices, Lehman Brothers, Magazine Cover Indicator, Shanghai Composite Index, social mood

Category: Stocks


From Hero to Zero: Public Figures on Magazine Covers
The Asian-Pacific Financial Forecast shows why being on a magazine cover is not as glamorous as you might think

By Nathaniel Williams
10/27/2011 9:00:00 AM

Paul Montgomery"s magazine cover indicator shows that media often laud leaders near the peak of their popularity, after which they often have nowhere to go but down.

Filed Under: Magazine Cover Indicator

Category: Asian Markets


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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.