Often, as traders and investors we start off with an open mind about playing the field, so to speak. We watch the news, listen to friends and colleagues — and we try to apply what’s known as “fundamental” market analysis to make our trading decisions. Soon, though, we start to realize that the “bullet-proof” logic of “fundamental” analysis is not Kevlar, but a piece of cardboard. We see markets fall after good news; rally after bad; and go sideways, defying both bulls and bears. That’s when we realize that trading is not as easy as it seems.
Elliott Wave Analysis Can Help You See Countertrends. Pattern in Focus: the Zigzag.
May 14, 2021 by Leave a Comment
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off?
May 8, 2021 by Leave a Comment
As Elliott Wave International has noted many times, the mainstream financial press always tries to find a reason for a given trading day’s stock market action.
In other words, if stocks happen to be up for the day, many financial journalists will say it was because of this or that “positive” news. If stocks happen to be down for the day, you got it, these journalists will ignore the positive news and search for something “negative” that happened in the country or world and say that was the reason stocks went down.
Rise of the “Know Nothings”
May 1, 2021 by Leave a Comment
With the longest “Bull market” in history in full swing young investors are flocking to the market with no experience of ever having seen a full-fledged crash only “corrections” that are quickly reversed into higher and higher valuations. Twenty-somethings were still in elementary school in 2008 so it is a distant memory… let alone 2002-3 or 1989. With no experience in dealing with a crash, they are plunging into the market at record levels.
Are Investors “Courting Doom”?
April 29, 2021 by Leave a Comment
Since the start of the pandemic, millions of people have opened trading accounts. Perhaps, you have as well. When stocks only go up – as they have over the past year – trading seems easy. That’s why many traders today use lots of margin debt. And why not? Borrowing to buy stocks can work out well during an uptrend. Yet, highly leveraged portfolios can be deeply wounded during a fast-moving downtrend. When this bull run ends, we’ll hear lots of stories about traders who got caught completely unprepared. Don’t let it happen to you.
Too Many Bulls?
April 20, 2021 by Leave a Comment
We know from experience that whenever investor sentiment gets too lopsided — in other words, if there are “too many” bulls or “too many” bears — it inevitably means that a market reversal is near. Back in January, we ran an article on the extreme bullishness of the market and then we saw a correction but it didn’t last long enough and once again we are looking at a bullish etreme. Today we are bringing you an article from Elliott Wave International which looks at how bullish the current market is.
Should Stock Markets Fear Inflation or Deflation?
March 31, 2021 by Leave a Comment
You can’t go ten minutes on financial media these days without coming across a reference to inflation. That is, consumer price inflation to be more exact — the measurement of changes in the prices of consumer goods and services that the entire world has been hoodwinked by central banks into thinking is the definition of inflation. The proper definition of inflation is the expansion of money and credit in an economy. On that definition, most major economies have been experiencing high inflation for decades.
Bitcoin: Let’s Put 2 Heart-Pounding Price Drops into Perspective
February 27, 2021 by Leave a Comment
Bitcoin’s price fell hard, from above $58,000 to $45,000, and some are wondering if this is the start of a crash. Well, the word “crash” was also used back in January, when the cryptocurrency fell from $42,000 to below $30,000. However, prices bounced back. Let’s see how Elliott wave analysis can help put both price drops into perspective.
Spotting the Slide in Silver
January 26, 2021 by Leave a Comment
With bitcoin’s ups and downs stealing the spotlight lately, it’s easy to forget about gold and silver, the traditional “stores of value.” Meanwhile, action in precious metals has been quite lively lately, as well. For example, on January 6, the price of silver hit an intraday high of $27.97 and then took a swift slide. Here’s what the Elliott Wave has to say about it.
Market Participants are Extremely Bullish
January 11, 2021 by Leave a Comment
With the current political upheaval in this country, it is difficult to see how the market can be so bullish. In today’s article by Elliott Wave International, we see that the market has “Great Expectations” for 2021. But as we saw in the previous article, Why Most Investors Miss Major Stock Market Turns, often when market-participants are most bullish is at the peak. And its not just amateurs that make this mistake, even “professionals” get caught up in the euphoria. This makes sense in a strange sort of way. When everyone is “fully invested” there is no more money left to flow into the market so it has to go down. And when everyone has taken their money out of the market and put it in “safe cash” there is plenty of money available to drive the market up. Recently Forbes published an article entitled 4 Stock Market Sentiment Indicators: Euphoric-Plus. The old market adage “when everyone else is buying you should be selling” might apply here. Also at the end of this article, you can get free access to the online version (really free- no shipping) of the Elliott Wave Classic, Elliott Wave Principle: Key to Market Behavior ~Tim McMahon, editor
Why Most Investors Miss Major Stock Market Turns
December 18, 2020 by Leave a Comment
Is Dow 100,000 just down the road? One financial commentator makes the case. At the same time, realize that extraordinarily bold forecasts usually occur at a particular juncture during a market’s trend. ~Tim McMahon, editor
