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


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


Triple Top: The S&P 500 Goes Nowhere for 13 Years
Something's got to give, and it likely will.

By Bob Stokes
4/19/2013 4:45:00 PM

Technical analysts describe a triple top formation as a textbook "reversal" pattern. After the third peak, the downward price trend that follows may be steep and break below the two prior lows. If that break occurs, prices could descend into free-fall territory. In his March 2013 issue of The Elliott Wave Theorist, Robert Prechter refers to "the 13-year triple top ... from 2000 to 2013." What's more, this pattern does not stand alone.

Filed Under: Bear market, Bob Prechter, bull market, Elliott Wave Theorist, market crash, S&P 500, technical analysis

Category: Stocks


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


It's True Love for the Dow Industrials
Will stock market bulls suffer a broken heart?

By Bob Stokes
3/14/2013 4:30:00 PM

Most stock market investors are head over heels for the Dow. Even though the market has already trended higher for four years, market participants believe prices have more room to climb. Some investors are prepared to embrace equities even if prices decline. Extreme market sentiment (bullish or bearish) usually indicates that the crowd has already acted. Yet, sentiment is just one of the three pillars of market forecasting.

Filed Under: Bear market, bull market, CNBC, Dow Jones Industrial Average (DJIA), Elliott Wave Theorist, investor psychology, market forecasts, Robert Prechter, S&P 500, sentiment, short selling

Category: Stocks


U.S. Stocks: Today's Market Sentiment Starkly Contrasts 2009's
How extreme sentiment can signal a trend ready for change

By Bob Stokes
1/24/2013 5:30:00 PM

In March 2009, stock prices were at a 12-year low, and you'd have needed to search far and wide to find someone calling for a rebound.  Most investors feared that more of the same was ahead. Instead, stocks rallied. Investor sentiment is now at the opposite extreme.

Filed Under: Bear market, Bob Prechter, bull market, CNBC, Dow Jones Industrial Average (DJIA), Elliott wave, herding, investor psychology, market forecasts, sentiment, VIX

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


The Kiss of Death for the Current Market Trend
Investors have decreased their use of leverage

By Bob Stokes
11/30/2012 4:45:00 PM

Entire bull markets can be heavily sustained by leverage. And when leverage contracts, that's usually a sign that the upward market trend is in trouble. With that in mind, take a look at a chart. 

Filed Under: 1929 Stock Market Crash, bull market, Elliott wave, history, momentum, New York Stock Exchange (NYSE), risk appetite, volume

Category: Stocks


The Elliott Wave Model and "Probabilities Regarding Future Market Movement"
The personality of wave 2

By Bob Stokes
11/28/2012 5:00:00 PM

If the market has been in a second wave, then the strongest leg of a five-wave trend -- wave three -- obviously comes next. Learn what the Elliott wave model reveals about the "probabilities regarding future market movement" for the rest of 2012 and beyond.

Filed Under: Bear market, breadth, bull market, Elliott wave, investor psychology, long-term trend, market forecasts, momentum, Robert Prechter, technical analysis, U.S. STOCK MARKET

Category: Stocks


Prechter: "Every Mania Ends Below the Starting Point."
Who has the odds in the bull vs. bear battle?

By Bob Stokes
9/13/2012 5:45:00 PM

Manias have developed many times in the history of financial markets. No matter in which country or period in history the financial manias occurred, they all have had one thing in common...
 

Filed Under: 1929 Stock Market Crash, Bear market, Bob Prechter, bull market, economic depression, Elliott wave, financial forecast, history, mania, Nasdaq Composite, Nikkei, sentiment, Short Term Update, stock indexes

Category: Stocks


A 4-Chart Lesson in Spotting Trade Setups

By Debbie Hodgkins
7/13/2012 10:30:00 AM

You can find low-risk, high-confidence trading opportunities when you trade with the trend in a market. The trick is to find the end of market corrections, so you can position yourself for the next move in the direction of the trend.

Filed Under: Bear market, bull market, elliott wave junctures, financial forecast, investment decisions, investment strategy, Jeffrey Kennedy, successful traders, trade targets, Traders, trading lessons

Category: Education


Is It Bullish When Stocks "Ignore Bad News"?
You can only answer that if you look at the market's larger context: bullish or bearish.

By Vadim Pokhlebkin
7/6/2012 5:30:00 PM

On more than one recent occasion, I've seen financial TV interviewers ask experts this very question: "Is it bullish when stocks 'ignore bad news?'” The answer the experts give is invariably, "yes." But please read what EWI President Robert Prechter, a market analyst with more than 40 years of market experience, says about that...

Filed Under: Bear market, bull market, Dow Jones Industrial Average (DJIA), risk appetite, Robert Prechter, S&P 500, social mood, socionomics

Category: Stocks


The World Has Suddenly Surrendered to Mass Optimism. Should You?
History shows that at market extremes many of the most opinioned bears and bulls surrender to popular opinion. The market then moves violently AGAINST popular opinion.

By Editorial Staff
4/6/2012 12:15:00 PM

Consider this. A week after the Dow's all-time high in October 2007, Robert Prechter went on Bloomberg to describe "extremes that exceed 1929 or 1987...these are the harbingers of a change to the downside for the stock market." A week before the major low in March 2009, he went on CNBC to say "it's getting crowded on the bear side...we've been in a short position for a long time, I recommended that people get out of it." S&P futures traders were a record 98% bears (only 2% bulls) on the very day of the low Prechter went on TV to call for a major turn to the upside. In other words, people were telling you to sell at the worst possible time. What about now? Here's what WE think.

Filed Under: Bear market, Bob Prechter, bull market, Elliott wave, Elliott Wave Principle, Elliott Wave Theorist, Elliott Wave trading, herding, market crash, market forecasts, Robert Prechter, quantitative easing, Robert Prechter, S&P 500, stock indexes, stock market cycles, U.S. Federal Reserve (the Fed)

Category: Stocks


Capital Safety: Is There Such a Thing as "TOO Safe"?
See the latest capital safety tips from Robert Prechter in his new Elliott Wave Theorist

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

We all know that the stock market has been rising for 3 years. Many economic measures -- unemployment, consumer spending and confidence, etc. -- also show strong improvement. Yet is that a good reason to stay bullish on stocks? Some people might say the answer is obvious enough to render the question silly. But before you give a reply...

 

Filed Under: Bob Prechter, bull market, diversification, Dow Jones Industrial Average (DJIA), Elliott wave, Elliott Wave Theorist, S&P 500, safe haven

Category: Stocks


Asian-Pacific Stocks: The Trend IS Your Friend -- But How Do You Know When the Trend Might END?
PLUS, Special Section: Apple, Inc. (AAPL), the Global Bellwether -- all inside EWI's March 2012 Asian-Pacific Financial Forecast...

By Vadim Pokhlebkin
3/4/2012 11:30:00 AM

Here's a question that any stock market investor wants answered: How do you know when a rally (or decline) may end? If you look to the economy for an answer, you'll likely be disappointed. Just think back to mid-2007, when the economy was strong -- but, out of the blue, the stock market began a decline that became a crash. Conversely, recall how bad the economy was in March 2009 -- right when stocks hit bottom and began a three-year rally. What's the alternative, then?

Filed Under: ASX All Ordinaries, Bank of Japan, BRIC, bull market, Chinese markets, diversification, Elliott wave, emerging markets, Indian markets, Indian Rupee, investment strategy, Nikkei, SENSEX, Shanghai Composite Index, Taiwan index, technical analysis, technical indicators

Category: Asian Markets


True or False? "Improving Economy is Bullish for the Stock Market"
Yes, it's a trick question. Read on to understand why

By Vadim Pokhlebkin
2/28/2012 5:45:00 PM

"Markets rise on increase in US consumer confidence," said a February 28 Associated Press headline. To decipher the meaning of economic reports like this is the bread and butter of "fundamental" analysis. Inevitably, positive data is 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! Well, take a look at this.

 

Filed Under: Bear market, bull market, consumer confidence, Elliott wave, gross domestic product (GDP), Robert Prechter, S&P 500, VIX

Category: Stocks


A 13-Year Trend Channel Line In Gold Sends A Clear Message
Our February Elliott Wave Finanical Forecast presents a compelling chart of a channel line in gold that goes back to 1999.

By Nico Isaac
2/28/2012 4:00:00 PM

Hedge funds love it. Housewives love it. And now, pooch hounds love it. On February 26, the world's fascination with gold reached unchartered "terrier"-tory when the scene-stealing Uggie the Jack Russell dog from "The Artist" sported an 18-carat gold bone-shaped tag to the 84th Academy Awards. So, as demand for gold continues to soar, the question is: Will gold prices do the same?

Filed Under: bailouts, bull market, Elliott wave, Elliott Wave trading, europe, European debt crisis, financial forecast, fundamental analysis, Gold, Greek debt, precious metals

Category: Gold and Silver


Stock Market Bull: Real or Phony?
Robert Prechter's new Elliott Wave Theorist puts the S&P 500 rally to a "golden" truth test

By Nico Isaac
2/27/2012 5:15:00 PM

On February 24, the S&P 500 rose to its highest level in nearly four years after breaking through its long-standing April 29, 2011, peak. And, according to the mainstream experts, there is just one word to describe the S&P's long-term future: "Ole!"  Are the bulls right?

Filed Under: Bob Prechter, bull market, Dow Jones Industrial Average (DJIA), Elliott wave, Gold, Robert Prechter, real Dow, Robert Prechter, S&P 500, U.S. STOCK MARKET, Wall Street

Category: Stocks


Stocks: Why Is "Good News" from Greece Not Good Enough for Investors?
The answer begins with knowing that the stock market is not moved by cold logic

By Vadim Pokhlebkin
2/22/2012 2:00:00 PM

The February 21 agreement to bail out Greece came and went -- and investors are left wondering. Many think they need to weigh all the possible effects (good and bad) which this new development may have on the stock market. These headlines capture the uncertainty...

Filed Under: Bear market, bull market, European debt crisis, European Union (EU), Greek debt, S&P 500, social mood

Category: Stocks


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


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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.