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S&P 500: Rally Killer on the Loose?
Market sentiment extremes can help you identify trend reversals

By Bob Stokes
2/10/2012 6:00:00 PM

What is the "single most reliable indicator of an impending change of direction for a market"? Read what Robert Prechter has to say...

Filed Under: Elliott Wave Theorist, financial forecast, S&P 500, sentiment, Short Term Update

Category: Stocks


Inflation vs. Deflation: See the Chart That Settles the Debate
Inflation has been decelerating for over three decades.

By Bob Stokes
2/8/2012 5:15:00 PM

See the chart that addresses the inflation vs. deflation debate. Then, read the analysis... 

Filed Under: deflation, Elliott Wave Theorist, financial forecast, inflation, rate of change

Category: U.S. Economy


This Indicator Just Hit Multi-Year Lows: What Does It Mean for Stocks?
Where are the bears?

By Bob Stokes
2/6/2012 2:30:00 PM

A bullish consensus appears to be crystallizing. But that doesn't mean one should take a contrarian view for its own sake. One must look at the entire market picture, and ask, "Where are we in the market's main trend?" and "What are other indicators revealing?" We've asked and answered those questions...

Filed Under: bull market, Elliott Wave Theorist, financial forecast, herding, investor psychology, sentiment, Short Term Update

Category: Stocks


Facebook IPO: Will the Frenzy Fuel Share Prices?
Is Facebook worth $75-$100 billion of excitement?

By Bob Stokes
2/3/2012 5:30:00 PM

Should investors be concerned over too much Facebook excitement? Consider that the IPO filing comes after...

Filed Under: Elliott Wave Theorist, financial forecast, investor psychology, risk appetite, S&P 500, sentiment, Wall Street

Category: Stocks


A New Face (Book) of This Tech Boom: Should You Follow The Herd?
EWI's Financial Forecast reveals whether the new dot-com bubble will avoid going bust

By Nico Isaac
2/3/2012 5:00:00 PM

On February 1, Facebook revealed plans to raise $5 billion in the biggest internet initial public offering ever. Soon after, the vast majority of Facebook's 845 million users clicked "like" on the soon-to-be IPO's wall post. So, the big question remains: Does this salvo of social networking and micro-blogging sites really have a new "face"? One, for that matter, that won't turn into a sad, frowning emoticon from another tech boom gone bust?

Filed Under: Bob Prechter, Elliott Wave Theorist, hedge funds, herding, mutual funds, prechter, S&P 500

Category: Stocks


Elliott Wave Analysis: Lessons in Utility from a Long-Time Subscriber
"You must do the research on your research before jumping in with both feet," says a retired career broker

By Editorial Staff
1/31/2012 5:30:00 PM

You've probably come to this website to learn how to use Elliott wave analysis to impove your investment or trading results. Well, you're not alone. People have been using Elliott for decades, and today, we are speaking with one of them: Ms. Alayne Ginsberg, who discovered the Wave Principle back in the 1970s, and has been a fan ever since. Alayne talked to us on the phone from Colorado.

Filed Under: Elliott wave, Elliott Wave Theorist, prechter, Robert Prechter

Category: Classic Prechter


Do Housing Prices Hurt/Help US Stocks?
See an eye-opening chart in Robert Prechter's current Elliott Wave Theorist that sets the record straight

By Nico Isaac
1/31/2012 5:00:00 PM

"Fundamental" analysis of financial markets follows one simple formula: negative economic data equal a fall in stock prices; positive data equal a rise. And, underneath every mainstream finanical news report, this equation lies. Take, for example, the long-awaited release of the S&P/Case-Shiller Index of US Property Values in 20 major cities.

Filed Under: Bob Prechter, debt, deflation, Elliott wave, Elliott Wave Theorist, fundamental analysis, housing prices, inflation, prechter, S&P 500, U.S. STOCK MARKET, Wall Street

Category: Stocks


S&P 500: Momentum Sends a Market Message
Is the bear market rally losing steam?

By Bob Stokes
1/26/2012 5:15:00 PM

Even as prices rallied, the percentage of S&P 500 stocks below their 10-week moving average indicates the advance has been weaker than many investors may realize. Take a look at the chart...

Filed Under: breadth, Elliott Wave Theorist, financial forecast, S&P 500, Short Term Update, technical analysis, technical indicators

Category: Stocks


You've Seen Housing Starts This Bad Before -- If You're Ninety Years Old
Many know about home prices, few know about housing starts

By Robert Folsom
1/23/2012 5:45:00 PM

The difference here is that Prechter examines mostly long-term data, which is why he's able in turn to reveal the very long-term economic story. Most conventional economists only scrutinize marginal changes in monthly data. It doesn't even occur to them to study a 100-year chart, much less glean the trends that emerge from many such charts...

Filed Under: Bob Prechter, Elliott Wave Theorist, home sales, housing prices

Category: U.S. Economy


Why U.S. Stocks Went Sideways in 2011
Using Fibonacci Projection to time the next BIG stock market turn

By Bob Stokes
1/23/2012 5:45:00 PM

Many scientists, mathematicians and others have observed that Fibonacci ratios are widespread in nature -- from galaxies to the human form to the DNA molecule. Another natural form that displays Fibonacci ratios is the price pattern of the financial markets...

Filed Under: Elliott wave, Elliott Wave Theorist, Fibonacci, market forecasts, phi, Traders, U.S. STOCK MARKET

Category: Stocks


Most Dangerous Stock Market Myths: Part Three, The Crude Oil Connection
Are higher oil prices bearish for stocks? These myth-busting charts set the record straight

By Nico Isaac
1/19/2012 4:30:00 PM

As I write, the wheels on one of the most dangerous stock market myths go round and round in the mainstream finanical press. SEE this news item from January 12: "A drop in oil prices and strong bond auctions in Europe drove US stocks to a slightly higher close today." (Irish Examiner) The problem is, there is no consistent inverse correlation between oil prices and stock prices. It's time for this particular notion to meet its maker.

Filed Under: crude oil, Elliott Wave Theorist, fundamental analysis, prechter, Robert Prechter, S&P 500, U.S. STOCK MARKET

Category: Energy


Can You Bank on Blue Chips for the Long Run?
Even blue chips are vulnerable when change comes.

By Bob Stokes
1/9/2012 6:00:00 PM

Companies favored by the conventional wisdom as good for the long run may not even live to see the "long run," let alone perform well along the way. In the just published January Financial Forecast, you'll see a chart of a well-known "blue chip" which appears to be ready for a "meltdown"...

Filed Under: buy and hold, Dow Industrials, Elliott Wave Theorist, financial forecast, Gold

Category: Stocks


Explosive Third Waves: Is the DJIA "Set-Up" in Place?
Get ready for a major investor psychology shift.

By Bob Stokes
1/6/2012 5:15:00 PM

Time and again, experience shows that when third waves begin, investors are psychologically unprepared. For example, consider the third wave launch on...

Filed Under: Dow Jones Industrial Average (DJIA), Elliott wave, Elliott Wave Principle, Elliott Wave Theorist, Robert Prechter, S&P 500

Category: Stocks


This "Economic Drag" is Holding Back a Recovery
Debt trumps recent positive economic reports.

By Bob Stokes
1/5/2012 4:45:00 PM

Recent positive economic reports are enough to tip someone with an "on the fence" economic outlook onto the bullish side. But is that wise? A less-widely reported (and read) economic story has this to say...

Filed Under: debt crisis, deflation, Elliott Wave Theorist

Category: U.S. Economy


A Hellish Year for Hedge Funds: What Do We See Ahead?
"2011 was a year of horrors" for high-rollers.

By Bob Stokes
1/4/2012 5:15:00 PM

"The reports of hedge-fund dysfunction are starting to appear; the size and number of disruptions will multiply many times in coming months...hedge funds will find themselves unable to..." Read the rest of this quote from the October Financial Forecast...

Filed Under: Elliott Wave Theorist, financial forecast, hedge funds, mutual funds, risk appetite

Category: Stocks


Did Frank Sinatra Do It "His Way" or the Dow Industrial's Way?
Parallels between the Chairman of the Board's career and the stock market's price pattern

By Bob Stokes
12/30/2011 2:00:00 PM

Read the fascinating story of how Frank Sinatra's life and career aligned closely with the bull and bear periods of the stock market...

Filed Under: cultural trends, Elliott Wave Theorist, stock market cycles

Category: Stocks


$15-Trillion and Counting: Will the Debt Mountain Just Grow Higher?
"Anti-spending sentiment is on the rise."

By Bob Stokes
12/23/2011 4:45:00 PM

Many people say that the Federal Reserve will just keep "printing money." But to say that the government will just keep "stimulating" is to ignore the simple truth that institutions consist of people. Even people in authority come under the influence of prevailing psychology -- which today is one of increasing... 

Filed Under: Ben Bernanke, debt crisis, deflation, Elliott Wave Theorist, great depression, monetary policy, monetization, QE2, quantitative easing, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


Prechter: Safety Is a Good Thing (Radio Interview)
Robert Prechter on Bloomberg Radio

By Alexandra Lienhard
12/23/2011 11:15:00 AM

Robert Prechter joins Bloomberg Surveillance Podcast hosts, Tom Keene and Ken Prewitt to discuss how keep your money safe and the likelihood of deflation, among other topics. Enjoy the 12-minute interview.

Filed Under: Robert Prechter, Elliott Wave Theorist, interview, bloomberg, deflation

Category: Stocks


The Stock Market Is Not Physics: Part IV

By Editorial Staff
12/22/2011 9:30:00 AM

Most people's thinking simply defaults to physics when analyzing financial events. But when we take the time to examine the results of applying that model, we find that it is not useful either for predicting or explaining market behavior.

Filed Under: Bear market, bull market, cultural trends, Elliott wave, Elliott Wave Principle, Elliott Wave Theorist, Elliott Wave trading, fundamental analysis, investment decisions, investor psychology, prechter, Prechter's Perspective, Robert Prechter, sentiment, social mood, socionomics, stock indexes, stock market cycles, technical analysis

Category: Classic Prechter


Crude: "War Premium" or Wave Patterns: What Has Kept Us Ahead of Oil's Trend?
See an eye-opening series of charts that reveal the very "crude" connection between oil prices and war

By Nico Isaac
12/20/2011 4:15:00 PM

On December 14, President Barack Obama declared the end of the near-nine-year-long Iraq War. And, according to many mainstream financial pundits, when the U.S. troops leave Iraq, a new bear trend will be "occupying" the crude oil market. Their reason stems from the age-old "fundamental" analysis notion that "war is bullish for oil"; and conversely, the end of war, bearish. So, are they right? Well, take a look at the chart below.

Filed Under: crude oil, Elliott wave, Elliott Wave Principle, Elliott Wave Theorist

Category: Energy