Related Topics
Stocks , US Markets
     

Has Panic Finally Gripped Wall Street?

Hardly. You might be surprised at Wall Street pundits' 2019 stock market forecast

by Bob Stokes
Updated: December 20, 2018

Choose your adjective -- rocky, bumpy, jarring -- 2018 has certainly been a volatile stock market year.

As you'll recall, it started with that swift 10% drop in the DJIA in late January and early February. During that time and since then, the stock market has experienced dozens of triple-digit daily price swings.

But, even with the renewed round of volatility that started in October, many investors were unshaken.

Our Nov. 8 Ellliott Wave Theorist had a section titled "There Has Been No Panic" and said:

The stock market has exhibited no sign of panic among investors. On the contrary, intermediate and long term sentiment indicators have hardly budged from expressions of extreme optimism.

Our decades of market observations show that this degree of optimism hardly coincides with a price bottom.

Sure enough, the volatility persisted. One might think that after a tough November and thus far December for the bulls, investors would finally shift from optimistic to at least a little worried.

Well, this Dec. 18 Marketwatch story might surprise you:

Wall Street's really bullish on the stock market in 2019...

Wall Street sees a big rally of 17% from Monday's close.

As you'll recall, the DJIA closed lower by more than 500 points on Monday, Dec. 17.

Even so, that big drop, along with other triple-digit down days, have not been enough to alter much of Wall Street's bullish stance. The mentality that stocks almost always "bounce back" is still alive and well.

How does one explain such optimistic psychology in the face of wild market swings?

Well, another 2018 Elliott Wave Theorist offers insight through a historical parallel:

Keep in mind this comment from stock market historian John Brooks about the 1929-1933 experience:

[It] came with a kind of surrealistic slowness...so gradually that, on the one hand, it was possible to live through a good part of it without realizing that it was happening, and, on the other hand, it was possible to believe one had experienced and survived it when in fact it had no more than just begun.

The market always offers hope. Most investors... wait for the bottom before they give up and liquidate.

The stock market's Elliott wave pattern is revealing how far prices are likely to move before real signs of panic should start to emerge.

Learn what our Elliott wave experts are saying about the market's current juncture. You can do so risk-free. Look below to find out how.


Trying to Get a Handle on All This Stock Market Volatility?

Most investors are wondering whether the "worst is over" or, if the "worst is yet to come."

You don't have to "wonder."

You see, our Elliott wave experts' high-confidence forecast tells you what to expect next, so you can be confidently prepared.

Learn what they are saying now, risk-free. Look below to learn more …

Here's How Your Financial Forecast Service Team Works to Prepare YOU For New Opportunities

Read This, And Then Let Us Show You FFS in Action, 100% Risk-Free

Your Financial Forecast Service team includes three of the best-known market analysts in the world – Robert Prechter, Steven Hochberg and Pete Kendall. If you are familiar with Elliott wave analysis, you know exactly who they are.

No other analysts in the world, anywhere, undertake the depth of research that goes into the Financial Forecast Service. Throughout the month, Bob, Steve and Pete sift through mountains of data, often studying 100 years of data or more. Why? Because a chart of the big, long term waves is the only way to know precisely where in the pattern we are today – and therefore, precisely where we are most likely to go next.

Here's what you get with the Financial Forecast Service, 100% Risk-Free for 30 days

Every Month

At the end of each month, your team of analysts gets together and lets the sparks fly. The result? The Elliott Wave Financial Forecast. It's just one of three essential parts of your Financial Forecast Service. When you get a new issue, you can be sure it contains the most critical information you must know about the markets this month.

Three Days Per Week

In addition, at the end of the U.S. trading session every Monday, Wednesday and Friday, your team updates its monthly analysis with the Short Term Update. In STU, they prepare you for the most likely price moves in the next 3-5 trading days.

Latest Research

Finally, once every month, Robert Prechter sends you his very latest research about Elliott waves in the markets and society. For 30+ years, The Elliott Wave Theorist has delivered more groundbreaking market research than any other publication on the planet. One month Bob might prepare you for a multi-year move in a market; the next he will deliver a jaw-dropping study that challenges everything you thought you knew about investing. Whatever he writes, it will help you hone your grasp of the psychology behind the markets – and give you an enormous advantage over other investors.


Prepare for Risks and Opportunities That Will Surprise Most Investors

See our eye-opening forecasts for stocks, bonds, gold, USD and more.

Risk-Free, Start Your Subscription Now

$59

for 1 month of unparalleled market insights