Inside the October 2008 Elliott Wave Theorist ...

Have Investors Panicked

and Capitulated?

Robert Prechter examines historical stock activity to identify how and when fear and panic is recorded in stock market price. He even provides unique insight for whom you should vote in November.

Ever since mid-September, we have read that the bottom is in because investors have ‘panicked’ and ‘capitulated.’"

So writes EWI's Founder Robert Prechter in his just-published Elliott Wave Theorist, which dives into stock market history (recent and past) to determine whether capitulation has occurred.

The tragedy of history is that societies learn so little from it, despite its being a profoundly accurate indicator for the future. The one exception is technical analysis, which is actually based on this very premise.

No living person is more well-versed in stock market history than Bob Prechter. Consider his impossible-to-ignore case for deflation. Nobody else we know of said stocks will decline along with commodities while the dollar rallied. Yet, here we stand.

You see pictures of U.S. stocks every day; now take a look at how other global stocks and commodities have declined in tandem – just as anticipated by Bob’s “All the Same Market” thesis.

The Russian and Chinese stock markets are now down more than 70 percent. Commodities, most of which made all-time highs this year, have plummeted in unison like never before: platinum is down 63%, copper 52%, oil 53%, silver 56%, wheat 57%, corn 54%, soybeans 49%, cotton 54% and the CRB index of commodities a whopping 42% in three months, after peaking in July. We warned that the government’s ethanol program would be another fiasco, and corn investors are learning that lesson. Even gold, which is real money, is down 28%. Everyone wants cash, and they are selling everything to get it.”

~ Robert Prechter, October 2008 Elliott Wave Theorist

In this issue, you’ll discover …

• Prechter’s answer to the question, “Have investors panicked and capitulated?”
• An updated chart of the DJIA in real terms, namely gold.
• Fascinating charts that reveal recent “panic” days in U.S. stocks, with Bob Prechter’s analysis to put each day’s activity into perspective.
• A mind-blowing chart, which plots 16 important news items along with stocks, which demonstrates Prechter’s coined term for bear market patterns, the “Slope of Hope.”
• A historical analysis of big down and up days in stocks. When do they most frequently occur, and what do they mean for the larger trend?
• A re-exposition of the buy and hold myth. Yes, EWI’s recommendation for cash has outperformed stocks for eight years running – by a huge spread.
• Why banks will not lend, even with a gun to their presidents’ heads.
• What courses to take; what jobs to seek; what businesses to start.
• Updated commodity charts for platinum, copper, oil, silver, wheat, corn, soybeans, cotton and CRB.
• A candid analysis of politics viewed through a socionomic lens. You might be surprised for whom Prechter recommends you vote.
• All this plus much more.

When you start your risk-free subscription to The Elliott Wave Theorist now, you’ll also get instant online access to Bob’s still-current July Video Theorist and his August and September Theorists, "How to Be One of the Few The Government Hasn't Fooled" and "The Impossible Goes on A Rampage."

Together, these issues (available free to new subscribers) provide EWI’s long-term outlook, explain where U.S. markets have been and where they’re heading next, update EWI's deflationary forecast and tell you how to steer clear of toxic, debt-laden assets.