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Stocks: Running Scared, But Opportunities Still Present
Elliott Wave International tries to answer the question -- just WHAT, exactly, is the "economy" and "the markets"?



By Vadim Pokhlebkin Thu, 13 Mar 2008 18:00:00 ET	Email \| Print \| RSS \| My Updates	Bookmark and share It!

Most people talk about the economy like it’s something that exists separately from them. Like it’s a hot-air balloon floating up in the sky. That’s us, here on earth, feet on the ground, and there’s the economy – up there, see it?

Economy expands, economy contracts; economy enjoys cheap labor and dislikes high interest rates. And lately, “Economy is not responding to the Fed’s economic stimulus.”

But just what IS economy?

Economy is people. Us – you, me and that guy over there. “Economy” is all of us getting up in the morning and going to work. Without us, there is no economy. If we feel like working, and earning, and borrowing, and spending, the economy hums along and maybe even grows a little. If we don’t feel like doing any of those things, the economy stalls.

Same goes for “the markets:” They are also made of people – traders and investors.

That’s what came to mind this morning as I was sipping my coffee and watching CNBC. Right now, the people sitting around the table were saying, “markets” are not feeling like taking on any more risk.

Translation: Traders and investors are feeling scared. Have you noticed that market sell-offs are usually faster and stronger than rallies? That’s because fear is stronger than greed, markets’ other engine. And they are wondering why the Fed’s interventions are not working?

Just what, exactly, “markets” are so scared of is another subject. Fear aside, for stocks traders the question always is – are there any potential trades right now?

Of course. There are always opportunities – as long as you feel like putting money on the line. Understandably, most of those have been on the short side lately. Just today (March 13), for example, Elliott Wave International's Prime Stocks Flash service issued an update for GDX, Market Vectors Gold Miners ETF, and supplemented it with this chart (some labels have been erased for this publication):

Right now, says Prime Stocks Flash, the top Elliott wave count for GDX strongly hints that the recent price action "can be an ending diagonal." If you're familiar with Elliott, you understand exactly what this implies for the trend.

There are two other potential interpretations of the wave pattern in GDX. Read about them in detail and see all the charts online now – just look below for fast subscription steps.

(Editor's Note: Other recent Prime Stocks Flash updates include: RIG, AMAT, SSRI, GS, PRU, HPQ, DZZ, Sox Index, Retail/ANF, EEM, PAAS, Oil/Oils/OIH, NDC/DJI and GS.)

Tags: Economy, Stocks, fed's interventions, GDX, RIG, AMAT, SSRI, GS, PRU, HPQ, DZZ, Sox Index, Retail/ANF, EEM, PAAS, Oil/Oils/OIH, NDC/DJI

Flash - High-Probability Trading Opportunity Alerts

Analyzing the markets day in and day out is a labor of love for some (we know a few!). But many people are interested solely in the fruits of that labor – those hard-to-find, high-probability trading opportunities.

Whichever category you belong to, you probably don't have time to scan the markets for high-probability trading opportunities all day long, day after day, all through the year. That's what Flash does for you.

Flash puts a team from the world's largest market analysis firm to work for you. We scour the markets on your behalf, monitoring several potential set-ups at a time. When we identify a low-risk, high-probability trading opportunity, we immediately broadcast a Flash alert.

Each Flash tells you EXACTLY what we recommend and why. You read the short, concise Flash, and then decide to take action (or not) as you see fit.

Then you can relax! Each Flash includes a specific stop level to limit your risk. Plus, we carefully monitor each open Flash and alert you to adjustments as market action warrants.

Prime Stocks Flash
We scan dozens of sectors, hundreds of groups and thousands of individual stocks trading on the U.S. exchanges. When we spot a high-probability trading opportunity in an intermediate-term time frame, we alert you with a Flash. Then we diligently monitor each Flash for you, letting you know when to make the next move.

Big 5 Trader's Flash
We alert you to the high-probability trading setups in the “Big 5” – S&P/Dow, Nasdaq, T-bonds/notes, gold/silver and U.S. dollar. We intensely scrutinize each short-term move, looking for a wave pattern that portends a reversal. When one unfolds, we immediately construct a trading strategy and alert you with a Flash.

Big 5 Investor's Flash
Big 5 Investor’s Flash is similar to Big 5 Trader’s Flash, except we look for high-probability trading opportunities unfolding in an intermediate-term time frame. We watch the same “Big 5” – the S&P/Dow, Nasdaq, T-bonds/notes, gold/silver and U.S. dollar – and alert you with a Flash when opportunity knocks.

Best of all, for the value Flash brings to you, it’s a bargain. And the more Flash services you subscribe to, the less each one costs.

Add Flash to your trading arsenal now – whether you do your own analysis or not – and start getting the markets’ high-probability trading opportunities delivered directly to your desktop.

Visit EWI’s Flash Selection Tool to choose your Flash services:

If you prefer, call Customer Service at 800-336-1618 (from within U.S.)
or 770-536-0309 (from outside U.S.).
Please mention code SS-FRStocks.

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If you choose to take any recommendations from an EWI Flash Service, we suggest you keep the following guidlines in mind:

For best success, you should never commit more than a small portion of your available risk capital (perhaps 10%) to any given position. Some of our opinions will be wrong. You should not act on any recommendation unless you can afford to lose the money you place at risk. You should not place at risk any money earmarked for necessary expenditures. As a publisher of information and opinion, Elliott Wave International does all it can to serve you to its utmost ability. No publisher can guarantee error-free copy or distribution. All losses and/or profits that might accrue from your decision to invest or trade in the financial markets are yours regardless of any publishing and/or notification errors that may occur. This fact requires that you monitor your market positions to the extent necessary to insure that your risk does not exceed the limits you have established.

Home > Stocks Stocks: Running Scared, But Opportunities Still Present Elliott Wave International tries to answer the question -- just WHAT, exactly, is the "economy" and "the markets"?

Tags: Economy, Stocks, fed's interventions, GDX, RIG, AMAT, SSRI, GS, PRU, HPQ, DZZ, Sox Index, Retail/ANF, EEM, PAAS, Oil/Oils/OIH, NDC/DJI

Flash - High-Probability Trading Opportunity Alerts

Home > Stocks
Stocks: Running Scared, But Opportunities Still Present
Elliott Wave International tries to answer the question -- just WHAT, exactly, is the "economy" and "the markets"?