We've written about this market insight many times since its introduction in 2002. You can see and read about it yet again in the November Elliott Wave Theorist: The evidence for the EWI's "All the Same Markets" analysis continues to build.
In his second edition of
Conquer the Crash (2009), Robert Prechter noted that the financial press had recently been full of stories "about how 'liquidity is driving up all the markets.'"
As Prechter explained, EWI was "the first firm to introduce this idea.
Conquer the Crash, completed in March 2002, presented this illustration and accompanying commentary" --
As shown in [this chart], the Commodity Research Bureau (CRB) commodity index has tracked the S&P, with a slight lag, since mid-1998. Gold and silver have also joined in the latest stock rally. As I see it, this correlation means that most assets lately are moving up and down more or less together, probably as liquidity expands and contracts.
Conquer the Crash (1st ed., p. 204)
In May 2004, Barron's magazine published an article by Prechter and Pete Kendall that spelled out the "All the Same Market" theme. From there, The Elliott Wave Theorist and The Elliott Wave Financial Forecast continued to show subscribers charts of financial markets that were unfolding in parallel.
Prechter further explained: "Our main focus has been to recognize the topping phase of this liquidity binge." The most recent evidence is the ten-chart compilation from market activities across the globe during the week of November 5-12.
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Elliott Wave Theorist for immediate access to these charts, as well as Prechter's timely forecasts and several archived issues.
Also, don’t forget to order your copy of
Conquer the Crash as a reference guide to keep you informed and prepared for major changes in the markets and economy.