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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


"Control of Interest Rates" is the Biggest Myth About the Federal Reserve
Bond investors need to prepare for a major change of trend

By Bob Stokes
1/31/2013 4:45:00 PM

Many observers of financial markets hang on the Federal Reserve's every word, and believe the central bank determines interest rates. However, the evidence shows that interest rates are not controlled by the Fed. Bond investors need to prepare for a major change in trend.

Filed Under: all the same market theory, central banks, conquer the crash, Elliott wave, herding, Interest Rates, market myths, Short Term Update, Treasury bonds, U.S. Federal Reserve (the Fed)

Category: Interest Rates


The Stock Market: Meet the New Boss (Same as the Old Boss)
Learn what really governs stock market prices

By Bob Stokes
6/22/2012 5:00:00 PM

It seems logical that hype, news, market opinions from prominent people, government and Fed actions and other events would steer the stock market's trend. And it's true that the markets sometimes have a knee-jerk reaction. But when you look at the price charts that reveal the overall trend, you can easily see that none of these much-hyped news events have a long-term impact on share prices. Technical analysts know that the real boss of the stock market is...

Filed Under: Elliott Wave Principle, Facebook IPO, fundamental analysis, investment decisions, investor psychology, market myths, sentiment, stock indexes, technical analysis, U.S. Federal Reserve (the Fed)

Category: Stocks


4 New Insights From "The Greatest Trader You've Never Heard Of"
Enjoy this excerpt from Peter Brandt's latest update on intraday volatility for his Traders Boot Camp students

By Vadim Pokhlebkin
5/8/2012 4:00:00 PM

Peter Brandt has the quiet confidence of an ex-Marine. If you met him on an elevator, you would never tell that he is "the greatest trader you've never heard of." (That's not an exaggeration.) At least once a week, Peter sends his Traders Boot Camp students an update. Today, Peter sent us another interesting email with 7 bullet points. Here's an excerpt with the 4 most crucial ones...

Filed Under: futures trading, market myths, online trading, technical analysis, trade targets, Traders, trading lessons

Category: Education


Can You Spot the One Financial Myth From This List?
Exposing widely-held but false notions about financial markets and the economy

By Bob Stokes
4/24/2012 5:45:00 PM

In the list, all of the statements are true except one. Can you pick out the myth?...

Filed Under: Elliott wave, Interest Rates, investor psychology, market myths, personal finance, Robert Prechter, stock indexes, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


The Stock Market Is Not Physics: Part III

By Editorial Staff
12/20/2011 10:45:00 AM

We have already seen that economic performance, earnings and inflation do not necessarily coincide with movements in apparently related financial markets. Is there any evidence that dramatic news events that make headlines, such as terrorist attacks, political events, wars, crises or any such events are causal to stock market movement?

Filed Under: Dow Jones Industrial Average (DJIA), Elliott wave, Elliott Wave Principle, investment decisions, investor psychology, market forecasts, market myths, Robert Prechter, social mood, stock indexes, technical analysis, terrorist attacks

Category: Classic Prechter


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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.