Fear and greed. The human predilection for cyclic, emotional progression and the basis of the Elliott Wave Principle. We are up to our necks in the fear side of the cycle, and for plenty of good reasons. The Sword of Damocles was only hanging by a single horsehair. Just how much weight can that horsehair support?
The most famous line delivered by Pogo was, "We have met the enemy, and he is us." That sentiment perfectly captures what the muck-a-mucks on Wall Street should be thinking as they look around the financial landscape and realize that the credit default swaps they purchased as insurance against their risky securities bets have all blown up.
While a failure in the swaps market could crush many hedge funds that deal in them, Elliott Wave International's Bob Prechter sees an even more basic reason why they will ultimately come to a bad end – that's because they're not really hedgers, they are merely buyers
Announcing EWI's New eBook ...
In this exciting new 45-page eBook, Jeffrey Kennedy shows you – using fresh, real-life market examples – how you can use simple, yet powerful, chart reading techniques to improve your trading.
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