Traders -- Get the Better of Your Emotions with Elliott Wave Analysis

Our free Elliott Wave Video Crash Course demolishes the idea that news moves market trends, using a major bottom in the U.S. dollar index as proof.

by Nico Isaac
Updated: November 27, 2017

Let’s face it, turning on the morning news these days feels like walking into a mine field. From “the worst political environments ever” (July 7 CBS News) to increased natural disasters, mass shootings, global tensions, divisiveness, and a social landscape fraught with scandal -- who knows what the next explosion will be.

For investors and traders, the stress level is ramped up even more because, according to mainstream financial wisdom, each one of these events has a direct effect on market trends.

But what if those supposed market triggers were actually trailers; what if the news didn’t lead price action -- but in fact, lagged it?

That is the myth-busting premise of one of our most popular free resources, the Elliott Wave Video Crash Course. In the first video of this three-video series, our senior tutorial instructor Wayne Gorman resets the traditional needle and explains:

“Investors are often fooled by a deluge of information: economic conditions, GDP data, political news, and other events, which lure them into the market just at the worst times, when it’s a time to sell and forces them out of it at just the best times to buy.”

Wayne provides this stunning example from one of the most monumental times in the U.S. dollar’s history. In 2004-5, after four years of relentless selling, news surrounding the dollar was the epitome of doom and gloom. Wayne asks you to go back to that time to get a sense of how deeply entrenched negative sentiment was:

“Let’s assume that you’ve just seen this March 21, 2005 cover of Newsweek “The Incredible Shrinking Dollar” and you see this picture in the article:

“Now, it’s two weeks later and you’re reading the New York Times and you come across this editorial: ‘The recent rally of the United States dollar notwithstanding, the greenback has nowhere to go but down... The dollar is heading down, no matter what.’”

You can practically feel the bearish pressure of the time, which would’ve made it next to impossible to see any other outcome for the U.S. dollar other than further demise.

But then, Wayne Gorman shows a different picture from the same time, a chart from our December 31, 2004, Short Term Update, where our analysts labeled the decline in the U.S. dollar complete and called for a bottom.

Wayne Gorman drives the story forward:

“This is a chart of the U.S. Dollar Index about one year after Short Term Update’s forecast and as you can see, the US dollar did advance off of that low in 2004.”

“Why Use the Elliott Wave Principle?”

That’s the title of the first video from our Elliott Wave Video Crash Course. And the answer is: Because traditional, macroeconomic models to forecasts are wrong. From the Crash Course,

What do Hitler rising to power, World War II, the Holocaust, the biggest corporate bankruptcy in U.S. history, anthrax attacks, and the 2004 Indian Ocean tsunami which claimed the lives of 250,000 + people have in common?

Answer: They all preceded stock market rallies. Which goes completely against what mainstream wisdom expects.

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