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The Fractal of Finance: Seeing Phi in the Stock Market
Scientists say Elliott waves could be the stock market's signature.

By Bob Stokes
6/11/2013 5:15:00 PM

Most of nature's fractals are governed by the Fibonacci sequence. It begins with 0 and 1, and each subsequent number is the sum of the previous two:  0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55 and so on. The Fibonacci sequence also governs the number of waves that form in the movement of aggregate stock prices. Right now, the math of the market reveals a big clue about the trend of stocks.

Filed Under: Elliott wave, Fibonacci, history, market forecasts, phi, Ralph Nelson Elliott, Robert Prechter, stock indexes, technical analysis

Category: Classic Prechter


Get Ahead of the Crowd BEFORE It Moves
Use the Wave Principle to identify the trend of investor behavior.

By Bob Stokes
6/7/2013 5:15:00 PM

Individuals in the market crowd unconsciously take their cues from one another. Most feel like they don't know enough to make independent decisions. So, they look to others for signals -- in the hope that others know more. In turn, the process becomes self-reinforcing.
Robert Prechter put it this way ...

Filed Under: Elliott wave, herding, investment decisions, investor psychology, Robert Prechter, U.S. STOCK MARKET

Category: Classic Prechter


Why Trend Extrapolation Doesn't Work in Financial Markets
History is filled with dramatic social changes.

By Robert Prechter, Jr., CMT
5/14/2013 1:30:00 PM

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.

Filed Under: Elliott Wave Theorist, Robert Prechter, social mood

Category: Classic Prechter


How an Instinct Can Be Financially Dangerous
Beware of what accompanies market tops.

By Bob Stokes
5/9/2013 4:45:00 PM

Teenagers dress and talk alike. This natural tendency to conform carries into adulthood. Nowhere is the human tendency to conform more pronounced than in financial markets. Investors instinctively adopt the market views of people they perceive to be "in the know." Learn why this instinct can be financially dangerous.

Filed Under: 1929 Stock Market Crash, CNBC, Elliott wave, herding, investor psychology, Prechter's Perspective, Robert Prechter, U.S. STOCK MARKET

Category: Classic Prechter


Why You Should Make Wealth Protection a Top Priority
The SafeWealth Group has private long-term relationships with the world's safest financial institutions.

By Bob Stokes
4/29/2013 6:30:00 PM

EWI's analysis strongly suggests that the economy is entering a rare period of deflation. In terms of scale, U.S. history includes only two other such periods.

Filed Under: Elliott wave, Robert Prechter

Category: Classic Prechter


A Historic Sentiment Peak So Extreme It Happens "Only Once in Centuries"
From the April 2013 Elliott Wave Theorist

By Robert Prechter, Jr., CMT
4/24/2013 8:30:00 AM

(From the April 2013 Theorist) Not a single investment market – be it bonds, stocks, real estate, commodities or precious metals – stands anywhere near a major bottom today. Every one of them continues to show characteristics of being on the left or right side of a historic top of sentiment so extreme as to occur on average only once in centuries.

Filed Under: Elliott Wave Theorist, Robert Prechter

Category: Classic Prechter


(Audio) Q&A: Robert Prechter on the Fed, Inflation, Gold and More

By Editorial Staff
4/22/2013 1:30:00 PM

The figure here shows gold and silver prices for 2012 with the dates of the Fed’s unprecedented announcements. Both times, metals bulls got everything they hoped for and feared. Yet both markets peaked shortly after the first announcement, and they fell hard from a lower peak starting the very hour that Fed Chairman Ben Bernanke confirmed the start of his program to more than double his inflating from an already unprecedented rate. During that hour on Dec. 12, from 1:30 p.m. to 2:30 p.m., Robert Prechter was on the phone doing an interview with GoldSeek radio.

Filed Under: Gold, interview, Robert Prechter

Category: Classic Prechter


Prechter: "I'd Love to Turn Long-Term Bullish Again"
The next buying opportunity is going to be the one of a lifetime.

By Bob Stokes
4/17/2013 4:45:00 PM

Hindsight shows that Robert Prechter's August 1983 then-radical forecast of a "once-in-a-generation money-making opportunity" did happen. Yet that was a two-part forecast, so this question remains: Is the "biggest financial catastrophe" that Prechter foresaw still unfolding, or has the Fed confined the damage to the 2007-2009 financial crisis?

Filed Under: all the same market theory, Bear market, bull market, consumer confidence, consumer price index, deflation, Elliott Wave Theorist, Gold, Robert Prechter, soverign debt crisis, U.S. STOCK MARKET, unemployment

Category: Classic Prechter


The Secret Word: Deflation – And the Next Five Years of Financial Turmoil
From EWI's new report, The State of the Global Markets – 2013 Edition

By Robert Prechter, Jr., CMT
1/18/2013 2:30:00 PM

In the first five months of 2012, there were 20 times as many Google searches on “inflation” as there were on “deflation.” This is down from a ratio of 50 times in June 2008. If any theme has been overdone over the past six years, it is the theme of inevitable inflation if not hyperinflation.

Filed Under: deflation, Elliott Wave Theorist, hyperinflation, inflation, Robert Prechter

Category: Classic Prechter


The Tortoise is About to Cross the Financial Finish Line
Slow and safe wins the race

By Bob Stokes
1/4/2013 5:00:00 PM

It's true that a Treasury-bill account yields next to nothing. But at this financial juncture, the well-known saying of humorist Will Rogers has never been more relevant: "I am more concerned with the return of my money than the return on my money." Learn why Bob Prechter says that embracing financial risk because interest rates are low can be a trap.

Filed Under: all the same market theory, Bear market, conquer the crash, derivatives, Elliott wave, history, Interest Rates, investment strategy, long-term trend, market forecasts, mutual funds, personal finance, risk management, Robert Prechter, safe haven, social mood, stock indexes, Treasury bills (T-bills), treasury yields

Category: Classic Prechter


The U.S. Federal Reserve is Going on a Spending Spree

By Robert Folsom
12/14/2012 5:30:00 PM

This past Wednesday, Dec. 12, the Federal Reserve released its FOMC meeting minutes and policy statement. Such releases from the Fed are common, yet this particular statement was uncommon indeed. The central bank announced it's going on a spending spree.

Filed Under: Bob Prechter, Elliott Wave Theorist, Robert Prechter, U.S. Federal Reserve (the Fed)

Category: Classic Prechter


Conquer the Crash: A Book You Can "Judge By Its Cover"
Survive and Prosper in a Deflationary Depression

By Bob Stokes
10/31/2012 5:45:00 PM

In 2007-09, the world saw how quickly financial conditions can reverse. Even so, most economists remained dismissive of deflation. Yet, be aware of what Robert Prechter wrote in the July 2012 Elliott Wave Theorist, "Only one word allows you to make sense of what’s going on in the world, and inflation is not it." Learn what else Prechter had to say.
 

Filed Under: conquer the crash, deflation, economic indicators, Elliott Wave Theorist, inflation, Robert Prechter

Category: Classic Prechter


Why Investors Love Stocks When They Are Over-Valued
How consuming differs from investing, and why it matters to your portfolio

By Bob Stokes
9/27/2012 5:00:00 PM

When stocks are "on sale," investors shun them. But when stock prices rise, investors embrace them -- in fact, the higher prices go the greater the demand. This is why the supply and demand model we all learned in Economics 101 does not work in financial markets. If the traditional economic model doesn't work in finance, what model does?
 

Filed Under: Bob Prechter, consumer spending, Elliott Wave Theorist, herding, investment decisions, sentiment, supply and demand, U.S. STOCK MARKET

Category: Classic Prechter


The Fragile Stock Market: One Glitch Away from Massive Losses
The trading hiccups will multiply when the downturn resumes

By Bob Stokes
8/6/2012 5:15:00 PM

If the Knight Capital glitch happened when the market was relatively calm, imagine what could happen when investors are running for the hills. Read what Robert Prechter is saying...

Filed Under: 1929 Stock Market Crash, Elliott wave, investor psychology, market crash, Robert Prechter, stock indexes, Traders, trading lessons

Category: Classic Prechter


World's 15 Biggest Banks Get Downgraded -- What This Means for "Safe Banks"
Another one of Robert Prechter's Conquer the Crash forecasts comes true

By Vadim Pokhlebkin
6/28/2012 6:00:00 PM

This seems like a good moment for those "safe-haven" banks to toot their horn a little, as it might just get them more business -- just as this quote from Ch. 19 of Robert Prechter's Conquer the Crash had predicted...

Filed Under: debt downgrade, deflation, diversification, Elliott wave, risk management, Robert Prechter, safe banks, safe haven

Category: Classic Prechter


10 Years Ago Today: Prechter's Conquer the Crash Is Published. Read 8 Chapters Free Now
We're sharing 8 Conquer the Crash chapters FREE to celebrate!

By Jill Noble
6/21/2012 7:00:00 PM

Take advantage of this FREE, 8-lesson Club EWI report that can help you prepare your financial future.

Filed Under: conquer the crash, Elliott Wave Education, personal finance, Robert Prechter

Category: Classic Prechter


Happy Phi Day -- Perfect Day for Some Phinancial Fun

By Susan C. Walker
6/18/2012 11:45:00 AM

June 18 (6-18) is that special day when we celebrate the Golden Ratio (0.618...) and all the ways we use it today in wave analysis.

Filed Under: Fibonacci, Robert Prechter, phi, golden ratio

Category: Classic Prechter


Why Your Brain Makes the Wrong Decision at the Worst Time
Neocortex vs. Basal Ganglia

By Bob Stokes
5/31/2012 3:45:00 PM

Is the reasoning function of the brain completely absent during the buying and selling of financial assets? Robert Prechter answers the question this way...

Filed Under: Elliott wave, herding, investment decisions, Robert Prechter, stock indexes, Traders

Category: Classic Prechter


Can Two or More Wave Interpretations be Equally Probable? Robert Prechter Explains
The foremost expert on Elliott waves and author of one of the bibles of technical analysis provides insight

By Bob Stokes
5/22/2012 4:45:00 PM

Elliott wave practitioners know their discipline requires work. Yet that work can yield timely money-making insights...

Filed Under: Dow Jones Industrial Average (DJIA), Elliott wave, Elliott Wave Theorist, Elliott Wave trading, Fibonacci, market forecasts, Nasdaq Composite, New York Stock Exchange (NYSE), Prechter's Perspective, Robert Prechter, S&P 500, technical analysis, Traders

Category: Classic Prechter


Stock Market Turning Points: Has Wall Street Ever Warned You in Time?
Divorce yourself from the crowd. Independence is good.

By Bob Stokes
4/11/2012 5:45:00 PM

When it comes to financial markets, most allow others to do their thinking for them. You've heard the phrase "the blind following the blind." Yes, they both fall into the ditch. At Elliott Wave International, our mission is to keep our subscribers out of the ditch. To do so, we must first...

Filed Under: Elliott wave, herding, Robert Prechter, Wall Street

Category: Classic Prechter


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© 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.