The word “fractal” often means different things to the lay public compared to mathematicians. The public tends to think of fractal art while mathematicians think of the formula that generates the art. The mathematical concept is difficult to define formally, even for mathematicians, but the key feature of a fractal is that if you “zoom in” nothing changes, the same pattern just repeats over and over. The interesting thing is that fractals appear quite frequently in nature. From things as small as DNA, to Snowflakes and Crystals, to Pineapples, Ocean waves and Mountain Ranges, fractals are everywhere. Interestingly, they are also present in the stock market as we look at Minute Charts, compared to Hourly, Daily, Weekly, Monthly, etc.
Seeking Certainty in Uncertain Times?
July 10, 2020 by Leave a Comment
What seems like ages ago but in reality was just the beginning of this year… life was simple. The market was humming along, unemployment was at record lows, inflation was moderate and life was good. And now just a few months later, there are riots in the streets, unemployment is at record highs, and people are filling up the hospital’s ICUs.
Over the years, we have experienced many ups and downs but rarely in such close succession. But our first line of defense is always the “trendline” (no pun intended). A trendline can tell you both the market direction and its parameters. And if you have read much of what we do, both here and at Financial Trend Forecaster you will know that understanding the trend and using trendlines is a key part of our function.
Emerging Markets and Epidemics
May 21, 2020 by Leave a Comment
The global disruption associated with the pandemic far surpasses other major health scares in modern history.
Even so, you may recall 2009 news articles similar to this one from the New York Times (June 11, 2009):
It came as no surprise [on June 11, 2009] when the World Health Organization declares that the swine flu outbreak had become a pandemic.
The disease has reached 74 countries …
And, going further back in time, the World Health Organization provided this July 5, 2003 update on the Severe Acute Respiratory Syndrome, known as SARS:
To date, 8439 people have been affected, and 812 have died from SARS.
The reason for briefly reviewing the swine flu and SARS is to point out that, as surprising as it may be, both outbreaks marked not the start, but the end of a downtrend in emerging markets stocks.
Deflationary Psychology Versus the Fed: Here’s the Likely Winner
April 23, 2020 by Leave a Comment
Most economists believe the Fed can prevent financial crises and depressions. [EWI’s analysts] disagree. Socionomic theory proposes that naturally fluctuating waves of social mood regulate financial optimism and the economy. They are unconscious and cannot be managed.
Crude Oil’s 2020 Crash: See What Helped (Some) Traders Pivot Just in Time
April 8, 2020 by Leave a Comment
Since the start of 2020, crude oil has gone from “black gold” to “black days,” plummeting 70% for its “worst quarter on record”. As of March 30, oil prices circled the drain of a two-DECADE low near $20 per barrel. Is there any way an oil trader or active oil investor could look at the market’s crash and NOT see what one March 12 CNN article coined “a nightmare scenario”?
Is the Buying Opportunity Here Yet?
March 13, 2020 by Leave a Comment
With the market down so sharply many are speculating that it will rebound just as sharply but market sentiment might be indicating something else altogether.
Did the Oil Crash Wreck the Stock Market?
March 12, 2020 by Leave a Comment
Crude oil took a 30% dive on Sunday, March 8. Yet what’s happened in oil this year is so much bigger than that headline-grabbing, one-day move. In January, oil was $64 a barrel. It hit $27.34 intraday on Monday, March 9, so the price of oil fell 57% in just two months. Talk about a swift decline.
Spotting a 178-Year-Old Firm’s Collapse… 2 Years in Advance
October 30, 2019 by Leave a Comment
On Sept. 22, Britain’s Thomas Cook, the world’s 2nd largest travel agency, collapsed. The 178-year-old firm blamed it on many factors: weather, terrorism, Brexit… But would you believe that Elliott waves foresaw the coming demise as early as 2017? In the following article, we’ll look at the unbelievable chart that predicts the collapse.
Spotting High-Confidence Trading Opportunities
September 26, 2019 by Leave a Comment
You know that there are hundreds of technical indicators out there. Sometimes you may have so many flashing signals on your screen that it looks like the motherboard of the Starship Enterprise. Here’s help in choosing the right one. In this free video lesson, the editor of Elliottwave International’s “Trader’s Classroom” service shows his favorite moving average pattern: the “Pinch.”
Summer of Love for Gold Bulls: How “Quandary” Became Clarity
August 8, 2019 by Leave a Comment
As mainstream experts struggled to see the direction in gold, Elliott wave analysis saw a clear, bullish triangle. Then, gold prices rocketed to six-year highs!
