» 2011 » March

“If you were fortunate enough to have read the first edition of Robert Prechter’s Conquer the Crash, your money was safe and sound as stocks, real estate, commodities and many bonds plummeted.” Conquer the Crash, 2nd edition, (quote from inside book sleeve) The New York Times best...

Last week I expressed concern about the wave pattern forming on the XJO. I suggested that if it was an impulse wave forming for the decline from the top of the 17th February then it had some potentially very bearish consequences. Fortunately the index only formed a 3 wave pattern for the decline h...

I found this week’s Chart of the Day article of interest so have added it to the market wrap. “Today’s chart illustrates how the stock market has performed during the average pre-election year. Since 1900, the stock market has tended to perform well during the first seven to eight months ...

Elliott Wave International has just announced the beginning of their popular commodity FreeWeek event, where non-subscribers can test-drive some of EWI’s most popular premium services. Now through noon Wednesday, March 23 (Eastern Time), you’ll get access to all of EWI’s hottest d...

Announcement: Elliott Wave International has released a free issue of Robert Prechter’s Elliott Wave Theorist. It includes more of Robert Prechter’s experience than you’ll ever read...

What does it mean when Conti turn cycles and Fibonacci levels of support and resistance at one level are sliced through like a hot knife through butter?  Does that mean that they are no longer useful and are to be thrown on the trash heap?  I answer that with a resounding no.  What it means is th...

We can now add the recent uprisings in North Africa and the Middle East to the category of life imitating art — specifically, music lyrics. Those who lived through the 1980s might be forgiven for hearing an unbidden snatch of music run through their heads as they watched first Hosni Mubarak an...

Here’s one of the big advantages of using the Wave Principle when trading: you can increase your understanding of how current price action relates to the market’s larger trend. Other tools fall short in this regard. Several trend-foll...

Last weekend, in spite of technical indications to the contrary I suggested that the 19 day Conti cycle would be the bottom of the down cycle. It was a judgment call that I made at the time with the appropriate warning.  As the subsequent price action proved, this judgment was premature as (assumin...

Conventional economic wisdom is founded on one core concept: namely, that events that exist outside the market (part of “market fundamentals”) trigger trend changes in the financial markets. Because of this belief, you have the mainst...

I thought that readers would be interested in yesterday’s Chart of the Day post. Today’s chart illustrates how the recent rise in earnings has impacted the current valuation of the stock market as measured by the price to earnings ratio (PE ratio). Generally speaking, when the PE ratio is h...