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Why Trend Extrapolation Doesn't Work in Financial Markets

Futurists nearly always extrapolate past trends, and they are nearly always wrong. You cannot use extrapolation under the physics paradigm to predict social trends, including macroeconomic, political and financial trends. The most certain aspect of social history is dramatic change.

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If the Fed Stops Easing, Will Gold Start Wheezing?

Ask a mainstream economist about the relationship between central bank monetary policy and precious metals, and you'll hear something like: A hawkish Federal Reserve is to gold prices what kryptonite is to Superman. End the money printing and low interest rates, and you take the gravity-defying power out of gold.

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The Looming Financial Flameout: Phase II

This chart updates an earlier version published in the January 2007 issue of The Elliott Wave Financial Forecast. At that time, the chart was a warning for subscribers. An epic turn in the economy and financial markets began a few months later. That turn is clear to see on the updated chart taken from page 4 of the May 2013 Financial Forecast.

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EURUSD: Lots of Ups and Downs, Zero Net Progress

Here's what's interesting. Since the start of May, the euro bulls have tried to rally EURUSD higher at least five times. On May 8, we saw the latest attampt at a rally. It went as high as 1.3195. Then on May 9, the market fell again. That has been the fate of every rally, so far ...

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On EWI's Brand-New Service -- Elliott Wave Junctures

"I just had to write in as this one [lesson] on high-confidence setups just blew my mind. It gave me an 'aha' moment.

One of those very rare moments where you feel you have just learned something of inestimable value."

— Sunil G., Roseville, CA

I Want 'Aha Moments' That Help Me Spot Trading Opportunities



© 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.