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STOCK, Drop, and Roll: How Long Will The Bulls Get Burned?
EWI's US Intraday Stocks Specialty Service shows you the critical details that explain where stocks are likely headed in the short term
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By Nico Isaac
Mon, 21 Nov 2011 18:00:00 ET |
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Over the last week, the US stock market has endured one triple-digit surge...after a triple-digit slide -- culminating in its worst five-session performance since September.
Not helping matters is the mainstream analysts' INABILITY to stay in front of the turns. Just look at these two glaringly different headlines published within hours of each other on November 18:
- "US Stocks Advance... as better-than-forecast growth in gauge of leading indicators fueled optimism the economy will weather Europe's debt crisis."
-- VERSUS --
- "US Stocks Fall on European Debt Fears."
According to a recent news source, the constant lurching of prices without warning "is just like a scary movie." (Washington Post)
Well, it doesn't have to be. Elliott wave analysis helps to alleviate the main source of investor fear -- the element of the unknown -- by actually anticipating the market's twists and turns.
- On November 14, US Stocks Specialty Service's 3:34 pm intraday update and chart: "We knew it was important to drop under the 12,030 level to fulfill the wave count potential, and apparently the market is well aware of what it has to do to keep traders off balance and guessing. The added blue labels may hold the answer."
- On November 16, a 12:05 pm US Intraday Stocks Specialty Service update and chart continued: "If the triangle is complete, then 12,030 should provide support to allow the uptrend to continue. If not, further decline will be seen... with the 'already topped' scenario alive."
- On November 17, a US Intraday Stocks Specialty Service update and chart said: "The triangle pattern has officially broken. Trade has dropped below 11,760. Please keep in mind that the two somewhat different counts shown would allow trade to continue to fall in a precipitous manner... as impulsive wave action is notorious for morphing and extending."
- On November 18, a 3:44 pm US Intraday Stocks Specialty Service update wrote: "The Dow has climbed out on a limb all by itself today. The outlook continues to expect lower numbers..." And: "The broader focus [is] down with the potential of seeing the 11,503 level challenged."