Related Topics
Stocks , Investing
Share This Page         

How Investors Get Fooled by Financial Headline “Flip-Flops”

Did you see this headline switch within just 17 minutes?

by Bob Stokes
Updated: June 11, 2019

Hard-nosed journalists love to call attention to a politician's "flip-flops."

It goes something like this: "Here's what you said on the campaign trail, but last week, you said just the opposite."

But what if it's the journalists doing the flip-flopping, specifically, financial journalists (although, not necessarily the same journalist)?

Fnancial headline flip-flops occur when the angle on the news is reversed to fit a financial market's changing price action.

Here's an example from June 7, when the latest U.S. jobs figures missed expectations. The source is a well-known financial network:


Looking at the top two "breaking news" items, the one from "27m ago" attributed the Dow futures downturn to the weaker-than-expected jobs report. Then, the notification from "10m ago" turned the disappointing jobs report into a positive when the Dow futures turned up!

Yes, in just 17 minutes, the same news was used to justify the market going down, and then up.

Such flip-flops happen more often than most investors realize. The flip-flops are generally not noticed because each market-action explanation seems to make sense at the time it is made.

As you might imagine, the mainstream financial press uses other news besides a jobs report to justify the market's price action. But this next example also involves jobs and a quick change of opinion:

U.S. Stocks Surge as Jobs Report Spurs Optimism on Economy

June 5, 2009; 13:39 GMT (Bloomberg)

Markets Slide on Jobless News

June 5, 2009; 14:31 GMT (UPI)

As you can see, these headlines happen to be from different sources, less than an hour apart.

What you need to know is that EWI's research reveals that, beyond maybe a temporary price spike, the news does not have a lasting causal effect on financial markets in the first place.

If anything, it's just the opposite: The stock market's price action helps to shape the character of the news! In other words, positive headlines generally flow from bull markets, and negative news generally follows bear markets.

That's because the real driver of the stock market is investor psychology, which unfolds in repetitive chart patterns according to the Elliott wave model. This repetition makes the market predictable!

Learn what our new June Elliott Wave Theorist says about the stock market's most likely path for nearly the next two years. Yes, the new issue gives you a road map for stocks all the way into the year 2021.

Learn how to get started with a risk-free trial, just below.

Prepare Now for Big "Swings" in the Stock Market

The just-published June Elliott Wave Theorist lays it all out.

You'll see a chart that forecasts the price path for the Dow Industrials across the next two years. Yes, this is a major forecast. That chart is accompanied by detailed commentary.

Here's a Theorist quote:

As long as the market continues along the projected path, you should be able to use the remaining swings to your advantage …

Get the important details with a risk-free trial. Learn more just below …

Elliott Wave International’s Financial Forecast Service

All month long, FFS shows you the patterns in U.S. stock indexes, bonds, gold, silver, the U.S. dollar, as well as market psychology and cultural trends. We show you where the trend is now, and when prices should turn -- specifically, we show the pattern at multiple degrees of trend, with precise risk/reward calculations. If you have fewer surprises, you can be better prepared.

Here’s how it works:



Subscribe now and read the current issues within FFS.



Fine-tune your portfolio plan.



Relax. Watch the markets with your targets in mind.

Your Financial Forecast Service Team Helps Put YOU in Control of the Market’s Trends and Turns

Your Financial Forecast Service guides -- three of the best-known market analysts in the world:

  1. 1. Robert Prechter, Author of 16 market-related books, New York Times Best-Selling Author and Editor of Elliott Wave Theorist
  2. 2. Steven Hochberg, Editor of the Short Term Update and Co-editor of The Elliott Wave Financial Forecast
  3. 3. Peter Kendall, Author of The Mania Chronicles and Co-editor of The Elliott Wave Financial Forecast

As featured in:

Here's what you get with the Financial Forecast Service

Every Month

At the end of each month, you get a 30-60 day look ahead at the markets. Elliott Wave Financial Forecast lays out expected trends and turns in stocks, gold, USD and bonds.

Three Days Per Week

At market close every Monday, Wednesday, and Friday, you get the Short Term Update, alerting you to what’s changed and what’s upcoming in the next several days.

Latest Research

Every month, Robert Prechter sends you his latest research about waves of social mood in the markets in the Elliott Wave Theorist, so you always know the full picture.

You can be ready for risks and opportunities that catch most investors by surprise

Risk-Free, Start Your Subscription Now


for 1 month of unparalleled market insights