Elliott Wave InternationalmyEWISocioniomics.Net

It's True Love for the Dow Industrials
Will stock market bulls suffer a broken heart?

By Bob Stokes
3/14/2013 4:30:00 PM

Most stock market investors are head over heels for the Dow. Even though the market has already trended higher for four years, market participants believe prices have more room to climb. Some investors are prepared to embrace equities even if prices decline. Extreme market sentiment (bullish or bearish) usually indicates that the crowd has already acted. Yet, sentiment is just one of the three pillars of market forecasting.

Filed Under: Bear market, bull market, CNBC, Dow Jones Industrial Average (DJIA), Elliott Wave Theorist, investor psychology, market forecasts, Robert Prechter, S&P 500, sentiment, short selling

Category: Stocks


Game Over for Hedge Funds: Expect Disastrous Outflows at Just the Wrong Time
Some hedge funds swing for the fences, even as others strike out

By Bob Stokes
11/13/2012 6:00:00 PM

Poor performance has prompted a growing number of hedge fund managers to walk away. Yet, many hedge funds that are still in the game believe that this is the right time to go for broke. But EWI's analysis suggests that the big financial game is deep into overtime -- and the clock is about to run out.
 

Filed Under: Elliott wave, hedge funds, investment strategy, risk appetite, short selling

Category: Stocks


Do Bans on Short Selling Work? See for Yourself
One look at a chart -- and the answer is clear

By Vadim Pokhlebkin
8/9/2012 7:30:00 PM

When panic and fear grip the market, the authorities try their best to stop the bleeding. Their go-to move is to ban short selling of stocks -- a popular speculation method practiced by traders who believe stocks should fall further. To help stop the current wave of the crisis, the eurozone financial authorities have banned short selling, too. Writes our August Global Market Perspective...

Filed Under: AEX, CAC40, DAX, diversification, Elliott wave, euro stoxx 50, eurozone, FTSE, investment strategy, short selling

Category: Global Markets


U.S. Markets: Bedtime for the Bull
How deep will be the sleep?

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

Elliott Wave International analysts aim to pay attention to market signals when it matters -- before the market's behavior switches from one extreme to another. Learn what signals EWI is seeing now...

Filed Under: Elliott wave, financial forecast, investment decisions, market forecasts, oscillators, short selling, Short Term Update, stock indexes, technical analysis, technical indicators

Category: Stocks


How the "Law of the Vital Few" Can Improve Your Trading
The Pareto Principle or the 80/20 Rule

By Bob Stokes
6/18/2012 2:15:00 PM

Career trader Dick Diamond made copious notes of his trades during his 45 years of trading experience. At long last, he learned the specific set-up for the 80/20 trades that made him a success for the past 45 years and counting. Learn more...

 

Filed Under: CRB index, currency, Dick Diamond, Dow Jones Industrial Average (DJIA), forex trading, futures trading, investment strategy, momentum, Moving Average Convergence Divergence (MACD), Nasdaq Composite, New York Stock Exchange (NYSE), online trading, oscillators, risk management, S&P 500, short selling, technical indicators, Traders, trading lessons, trendlines, volatility, volume

Category: Trading Lessons


Why Consider This $4-Trillion-a-Day Market? Part I
Elliott Wave International's forex expert discusses the pros and cons of speculating in currencies vs. stocks

By Vadim Pokhlebkin
4/19/2012 4:30:00 PM

Elliott Wave International presents Part I of the interview with its Senior Currency Strategist, Jim Martens: Jim, our readers often tell us that they want to make money trading the markets. There are lots of options for would-be speculators out there. Your area is forex -- the market which has grown by leaps and bounds lately. Can you explain why I'd want to look at forex and not, say, the more "traditional" stock trading? Jim Martens: ...

Filed Under: Elliott wave, Elliott Wave Education, Elliott Wave trading, euro, euro/USD exchange rate, eurozone, forex, forex trading, online trading, short selling, sterling, Swiss franc, technical analysis, technical indicators, U.S. dollar

Category: Currencies


Apple, Inc. Announces $10B Share Buyback Program -- Bullish for AAPL?
Investors see corporate stock-repurchase programs as bullish. Are they?

By Vadim Pokhlebkin
3/19/2012 5:00:00 PM

Investors view stock-repurchase programs as bullish. Indeed, how can it not be when the firm whose latest rally contributed 1/3 to the NASDAQ's gains this year says it will "support" its own stock? The logic seems sound. But read these two quotes...

Filed Under: Elliott wave, Nasdaq Composite, sentiment, short selling, technical analysis, technical indicators

Category: Stocks


Market Risks and Rewards in a Major Deflation
Plus: Prechter's Perspective on Short-Selling

By Bob Stokes
11/29/2011 4:15:00 PM

It is true that so long as short selling in a major downtrend is allowed, the opportunity will be real indeed for investors who can manage the risk. Just beware of two facts...

Filed Under: Bear market, conquer the crash, european markets, risk management, short selling

Category: Stocks


For Stock Speculators: Your Intraday "Extra Edge"
Learn why one subscriber writes: "It is, by far, my favorite Elliott Wave service."

By Bob Stokes
9/20/2011 5:15:00 PM

Senior U.S. Equity Analyst Tom Prindaville watches intraday market movements like a hawk. He knows when trendlines have been breached, impulsive waves are unfolding, and corrective moves are underway. He identifies and labels waves on an intraday scale in the way our other services label waves on a longer time scale. If you're an experienced stock speculator, find out how to gain that extra intraday edge you've been looking for...

Filed Under: Elliott Wave trading, momentum, short selling, trade targets, Traders, trendlines, U.S. STOCK MARKET

Category: Stocks


Wall Street's "Bullish Bias" vs Government's "Bearish Policies"
The "Bias" and "Policy" both apply to short selling

By Robert Folsom
9/7/2011 5:15:00 PM

In case you're wondering, stocks did rally the day after they imposed the short-selling ban. From there, however, the major U.S. indexes began a free-fall on the order of 25% ...

Filed Under: short selling, Robert Prechter, Elliott wave

Category: Stocks


Europe Bans Short-Selling: A Long-Term Fix for Falling Stocks?
EWI president Bob Prechter provides an insight that the Eurozone's financial authorities would be wise to listen to...

By Nico Isaac
8/16/2011 5:00:00 PM

On August 12, financial officials of France, Spain, Italy and Belgium imposed a temporary ban on short selling. The move is meant to stabilize equity and financial markets after a violent rout has sent European bank shares to their lowest levels since the credit crisis of 2008. So, will this "muscle-flexing" measure save the financial day?

Filed Under: Robert Prechter, conquer the crash, credit crisis, europe, European debt crisis, short selling

Category: European Markets


Amazon Stock: Elliott Wave Analysts Pay No Heed to Lady Gaga's Server-Melting $.99 Album Launch
Whether or not our analysts listen to Lady Gaga, this much is certain: They don't follow her media appearances when applying Elliott Wave analysis for FLASH service subscribers.

By Jill Noble
5/25/2011 5:30:00 PM

The Elliott Wave Principle posits that fractal patterns govern the markets (and broadly-traded stocks), down to the one-minute chart. These patterns typically unfold in 5 wave and 3 wave structures, no matter what the business news includes. 

Filed Under: Elliott wave, Fibonacci, fundamental analysis, Nasdaq Composite, short selling, technical analysis, Traders, trading lessons

Category: Stocks


"The Two Times of Day the Market has a High Degree of Predictability"
Plus Other Market Insights from Trading Pro Dick Diamond

By Bob Stokes
5/11/2011 5:00:00 PM

Afternoon contra moves follow the same general principles as the morning contra moves. This move has the potential to be much more important than the morning.  Learn more... 

Filed Under: breadth, Dick Diamond, Fibonacci, Moving Average Convergence Divergence (MACD), online trading, Relative Strength Index (RSI), short selling, stochastics, technical analysis, technical indicators, Traders, trading lessons, trendlines, VIX, volatility, volume

Category: Stocks


Will Silver Speculators Bring Back the Bubble?
Silver's Rise and Fall: Learn the True "Why"

By Bob Stokes
5/9/2011 4:45:00 PM

Do "margin requirements" explain the metal's swift price tumble? The just-published May Financial Forecast says...

Filed Under: gold futures, mania, short selling, silver, silver futures

Category: Gold and Silver


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


Gold and Silver: Why Are Prices Falling?
The timeline of the selloff reveals whether the recent news headlines are the real culprit

By Vadim Pokhlebkin
5/5/2011 3:30:00 PM

Gold and silver fell hard again on May 5: Gold touched an intraday low of $1463 per ounce (from $1,577 on May 2), and silver fell as low as $35 an ounce (from $49 on April 25.) Investors want explanations, and here are some of the more popular ones...

Filed Under: diversification, Elliott wave, gold futures, hedge funds, inflation, mania, market crash, market manipulation, safe haven, short selling, silver futures, U.S. dollar, volatility

Category: Gold and Silver


Right Trades at the Right Times: Dick Diamond Shows You How
SAVE $500 During the Early, Early Bird Special

By Bob Stokes
5/2/2011 5:15:00 PM

Diamond has established trading principles over his four-decade trading career. Learn and follow his principles, and you'll take your first steps down the path to the right trading choices -- in up and down market trends...

Filed Under: Dick Diamond, Fibonacci, forex trading, futures trading, Keltner channels, Moving Average Convergence Divergence (MACD), oscillators, Relative Strength Index (RSI), S&P 500, short selling, stochastics, stock indexes, successful traders, technical analysis, Traders, trading lessons, volume

Category: Stocks


Trading the E-Minis Using Technical Analysis
Dick Diamond's "Primary Studies" Point the Way

By Bob Stokes
1/24/2011 5:00:00 PM

E-minis are one of Master Trader Dick Diamond's favorite trading vehicles. He calls them the "best day-trading or swing-trading vehicle to come around Wall Street ever!"  Diamond has undertaken what he calls "primary studies" of ten technical indicators, and his approach to E-minis trading is based on what these indicators show him...

Filed Under: Dick Diamond, Dow Jones Industrial Average (DJIA), Fibonacci, forex trading, futures trading, Keltner channels, Moving Average Convergence Divergence (MACD), Nasdaq Composite, New York Stock Exchange (NYSE), online trading, oscillators, Relative Strength Index (RSI), S&P 500, short selling, technical analysis, technical indicators, Traders, trendlines

Category: Stocks


The Trader Who Lost 70% of His Account -- and Made a Comeback
Trading Principles Point the Way

By Bob Stokes
1/18/2011 5:45:00 PM

He established trading principles and vowed to stick by them. As Diamond applied them, he did indeed make a comeback -- which has lasted until this very day.  You can discover a few of those principles in this article...
 

Filed Under: breadth, Dick Diamond, Dow Jones Industrial Average (DJIA), Fibonacci, investor psychology, Nasdaq Composite, New York Stock Exchange (NYSE), online trading, oscillators, risk management, short selling, successful traders, technical analysis, technical indicators, Traders, trading lessons

Category: Stocks


Ban on Short Selling: Are European Markets Now Safe?
"A ban on short selling creates a market with no latent buying power at all," says EWI president Robert Prechter

By Vadim Pokhlebkin
9/23/2010 4:45:00 PM

Sep 15 (Reuters): "The European Union's executive unveiled a blueprint on Wednesday to curb or ban short-selling and tighten controls on derivatives..." If you're wondering whether this will save European stock markets from another meltdown, think back to the summer of 2008, when the U.S. Securities and Exchange Commission made a similar move. Do you remember where the DJIA went shortly after?

Filed Under: European Union (EU), short selling, derivatives, Robert Prechter

Category: European Markets


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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.