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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


S&P 500 Forms "Golden Cross": Are Stocks Set to Explode Higher?
Moving averages are lagging technical indicators.

By Bob Stokes
2/1/2012 3:15:00 PM

On January 31, the "Golden Cross" formed on the S&P 500 chart. Even though the S&P 500 closed the day in slightly negative territory, the index's 50-day moving average remained above the 200-day. What's our view of moving averages as a forecasting tool?...

Filed Under: Elliott wave, momentum, sentiment, technical analysis, technical indicators, Traders

Category: Stocks


Market Insight: Stock Market Sentiment Snapshot

By Vadim Pokhlebkin
1/19/2012 10:45:00 PM

With the DJIA making gains so far this month, the Jan. 18 issue of Elliott Wave International's Monday-Wednesday Friday Short Term Update takes a look at market sentiment...

Filed Under: Dow Jones Industrial Average (DJIA), Elliott wave, Elliott Wave trading, New York Stock Exchange (NYSE), S&P 500, sentiment, steve hochberg, U.S. STOCK MARKET, volatility

Category: Stocks


New Year, New High Hopes for Stocks
Except, when have we heard that before?

By Vadim Pokhlebkin
1/3/2012 6:30:00 PM

You can probably relate: Every year, come January 1, I just can't help but feel that "every little thing is gonna be all right," as Bob Marley sang. This year, the mainstream financial community is sharing the same sentiment. Here's how our own December 30 Short Term Update summarized it...

Filed Under: Dow Jones Industrial Average (DJIA), market forecasts, Nasdaq Composite, S&P 500, sentiment, unemployment

Category: U.S. Economy


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


Is a Real-Life "Breakfast at Tiffany's" Around the Corner?
Will luxury shoppers turn into Holly Golightlys?

By Bob Stokes
11/25/2011 12:30:00 PM

The trip from prosperity to hard times can be shockingly brief. Only a few city blocks separate Fifth Avenue and the South Bronx...

Filed Under: consumer price index, consumer spending, investor psychology, sentiment

Category: U.S. Economy


3 Pillars of Market Forecasting are Sending ONE Message
It's a market message you need to know

By Bob Stokes
10/25/2011 5:00:00 PM

Each one of the pillars can provide a clear and useful signal; yet at this juncture in the stock market, all three have combined to send a neon-sign warning which should have the attention of every market participant...

Filed Under: Elliott wave, market forecasts, momentum, Robert Prechter, sentiment

Category: Stocks


European Stocks: The Trap Is Being Set
Inside EWI's October European Financial Forecast...

By Vadim Pokhlebkin
10/7/2011 11:45:00 PM

Did you realize that so far this year, France’s CAC 40 stock index has taken back nearly 2 years’ worth of gains in a mere 7 months? Same is true for the pan-European Eurostoxx 50 index. And, as markets dropped in September, less than 10% of futures traders said they were bullish on the DAX, FTSE, CAC 40 and Eurostoxx 50 in August and September. More...

 

Filed Under: CAC40, DAX, Elliott Wave trading, euro, european central bank, European debt crisis, eurozone, FTSE, Greek debt, Irish debt crisis, sentiment, soverign debt crisis, Swiss Market Index (SMI), volatility

Category: European Markets


EUR/USD: Why It Pays to Keep an Eye on Market Sentiment
The more the crowd believes that the trend is here to stay, the more likely is that trend to end

By Vadim Pokhlebkin
9/28/2011 6:45:00 PM

From its Sept. 26 low of $1.3365, the EUR/USD (the euro-dollar exchange rate and the most actively-traded forex pair) has rallied over 300 points into the September 28 high near $1.37. You'll read in the media that the reason for the rally was the optimism about the European debt resolution. But here's an explanation that's not often discussed

 

Filed Under: Elliott Wave trading, euro, eurozone, euro/USD exchange rate, european central bank, European debt crisis, European Union (EU), eurozone, forex, forex trading, sentiment, U.S. dollar

Category: Currencies


Days of Markets Past, Present, and Future
Does past and present market psychology give us insight into the future?

By Bob Stokes
9/22/2011 4:15:00 PM

When did fund managers have that "record commitment to stocks"? Answer: just a few months before the early May 2011 high. Take a look at the chart...

Filed Under: 1929 Stock Market Crash, economic depression, Elliott Wave Theorist, great depression, investor psychology, market crash, market forecasts, Nasdaq Composite, Robert Prechter, sentiment, volatility

Category: Stocks


Why REITs, Dot-coms and IPOs aren’t the Best Bet Now, Part 2

By Susan C. Walker
9/19/2011 3:30:00 PM

So, if REITs don’t seem like a good investment in a bear market, where else do people turn to get a pop for their investment dollars?

Filed Under: Bear market, personal finance, sentiment

Category: Stocks


Asian-Pacific Stocks: Not Immune to Debt Crises Shock Waves, Yet Following Their Own Path
Inside EWI's August Asian-Pacific Financial Forecast...

By Vadim Pokhlebkin
8/5/2011 7:00:00 PM

Most investors erroneously assume that global markets all move in unison. Consider the facts...

Filed Under: BRIC, Chinese markets, Elliott Wave trading, Nikkei, SENSEX, sentiment, Shanghai Composite Index, Shanghai Composite Index, terrorist attacks

Category: Asian Markets


Achtung Baby! NYSE Shareholders Approve Deutsche Boerse Merger
Historically, the urge to merge has coincided with major market peaks

By Nico Isaac
7/7/2011 5:00:00 PM

Well, it's happened: The global financial world has moved one step closer to witnessing the creation of the largest stock exchange on the planet: A near $10-billion merger between the New York Stock Exchange and Deutsche Boerse AG. On Thursday, July 7, news broke that 96% of voting NYSE shareholders said "Yay" to a union with the German entity. So, there's no time like the present to start learning a few key German phrases to welcome Wall Street's would-be financial in-laws. The four expressions below make for a fitting introduction:

Filed Under: New York Stock Exchange (NYSE), sentiment, Wall Street

Category: U.S. Economy


The Gold/Silver Ratio Shows Investors' Rapid Flight From Risk
EWI's July Financial Forecast reveals how the 30% sell off in May fits into the bigger picture

By Nico Isaac
7/1/2011 3:00:00 PM

Imagine that the collective US financial community had its very own Facebook page. And then imagine that the following news feed appeared under Recent Activity: "US Investors are now friends with Risk." You better believe there'd be as many "Likes" and "Thumbs Up" in reply to this status update as to a shirtless photo of Brad Pitt.

Filed Under: gold futures, investor psychology, risk appetite, sentiment, silver

Category: U.S. Economy


Putting a Miserable May Behind: Is the Stock Market Bull Set to Return?
EWI's latest, June Elliott Wave Financial Forecast shows you if today's sentiment indicators truly reflect a market bottom

By Nico Isaac
6/7/2011 5:30:00 PM

Last month, the US stock market suffered four straight weeks of decline for the worst May since August 2010. But now that that miserable run is behind investors, they are taking a page from the playbook of Don Henley's hit song "Boys of Summer." It goes "Don't look back, you can never look back."  

Filed Under: 1929 Stock Market Crash, Robert Prechter, bull market, Dow Jones Industrial Average (DJIA), sentiment

Category: Stocks


Is Your Pension Fund "Going for Broke"?
Can You Count on Your Pension Fund?

By Bob Stokes
5/25/2011 9:45:00 AM

The investment officers who oversee those funds clearly are not afraid of risky investments. They've jumped into them with both feet...All is well when most financial markets are rising. But what if...

Filed Under: cash, diversification, market forecasts, mutual funds, pension funds, sentiment, stock indexes

Category: Stocks


The Third Mania and "Market Madness"
Is the Rally Still Young?

By Bob Stokes
5/23/2011 4:15:00 PM

How about the bigger technical picture? Where are we in the market's key up/down cycles? What is the Elliott wave structure showing us?...
 

Filed Under: breadth, Elliott wave, Elliott Wave Theorist, investor psychology, momentum, oscillators, Robert Prechter, S&P 500, sentiment, technical analysis, trendlines

Category: Stocks


2007-2009 Bear Market: Was It All Just a Bad Dream?
The May issue of EWI's monthly European Financial Forecast looks at near-term trends in Europea markets

By Vadim Pokhlebkin
5/10/2011 4:45:00 PM

In peripheral European stock markets, such as the PIIGS eurozone nations, the rally off the March 2009 low unfolded in near-textbook Elliott waves. But "core Europe" has been another story. In the Eurostoxx 50, DAX, FTSE 100 and CAC 40, rallies from the 2009 low have exceeded typical Elliott wave targets...

 

Filed Under: CAC40, DAX, Elliott wave, euro, euro stoxx 50, eurozone, euro/USD exchange rate, european central bank, European Union (EU), FTSE, sentiment, Swiss Market Index (SMI)

Category: European Markets


EUR/USD: What's Behind the Incredible 4-Day, 700-Pip Drop?
The dollar's dramatic show of strength is not so surprising once you see this chart

By Vadim Pokhlebkin
5/9/2011 4:00:00 PM

Since the May 4 top near $1.4950, the EUR/USD (the euro-dollar exchange rate and the most actively-traded forex pair) has lost an incredible 700 points ("pips" in forex lingo). That's a 7-cent gain by the U.S. dollar against the euro -- in just 4 trading days. You'll find many explanations for this dramatic reversal in the mainstream financial press. But here's one that's not often discussed...

Filed Under: Daily Sentiment Index (DSI), Elliott wave, euro, eurozone, euro/USD exchange rate, forex trading, market forecasts, sentiment, short selling, U.S. dollar, volatility

Category: Currencies