In today’s editorial, David Banister takes a look at Gold and where it could be going. He provides an excellent possible scenario that matches with my views and experience exactly. He is projecting a rally to the $1500 range with a pull back from there and a major take-off for the final wave to the […]
Efficient Market Hypothesis: R.I.P.
August 19, 2010 by Leave a Comment
Of all the belief systems of Wall Street, few can claim the devoted following of the Efficient Market Hypothesis, the idea that stock prices adhere to the same laws of supply-and-demand that govern retail products. Once coined the theoretical “Parthenon” of economics, this notion has consistently endured the test of time —– until now. Academics […]
Understanding Robert Prechter’s ‘Slope of Hope’
July 19, 2010 by Leave a Comment
What’s the opposite of climbing the “wall of worry”? Now is a good time to learn why it’s called the slope of hope.
The Bear Market and Depression: How Close to the Bottom?
July 12, 2010 by Leave a Comment
“People are more bearish than I have ever seen them. This has to be a bottom.” The first half of this statement may well be true for many market observers. If one has been in the market for less than 14 years, one has never seen people this bearish. But 14 years is a short time. What about the past 100 years of stock market history?
20 Questions with Robert Prechter: Long Decline Ahead
July 2, 2010 by Leave a Comment
The following article is an excerpt from Elliott Wave International’s free report, 20 Questions With Deflationist Robert Prechter. It has been adapted from Prechter’s June 19 appearance on Jim Puplava’s Financial Sense Newshour. Jim Puplava: I want to come back to government spending, but first I want to move onto the stock market. In your […]
DJIA’s 200-Day Moving Average: Will the Dow stay above or below this demarcation line?
June 23, 2010 by Leave a Comment
Moving averages are one of the most widely followed indicator in technical analysis. Simply put, when the price of an index or stock stays above a particular price moving average line on a chart, that price level serves as support — a level where buyers reside. If the price falls below a moving average line […]
Prechter Called the Uptrend ‘Out’ in April
June 9, 2010 by Leave a Comment
Even non-sports fans have heard by now about the recent debacle known as “Baseballgate” — with two outs in the ninth inning, the first base umpire called “SAFE” when the runner was clearly “OUT.” The missed call cost Detroit Tiger pitcher Armando Galarraga a perfect game. But the Biggest, Baddest Call of all was not made on a sports field. It was made in the field of finance — specifically on the stock market. To wit: The mainstream “umpires” of finance stood near first base, and in April made this emphatic call for the uptrend in stocks.
‘Defensive’ Stocks: Are They the Ticket in a Downturn?
June 3, 2010 by Leave a Comment
Approximately three out of four stocks go down in a bear market. This ratio doesn’t just apply to high beta names; historically, 75 percent of all stocks go down when the general market falls. On May 20, when the DJIA lost 376 points, 99 percent of stocks fell. Yet a financial TV host recommended “defensive” names the day after. Wouldn’t his viewers be better served if he said, “You may want to step aside for now”?
Bigger Than A ‘10% Correction’?
May 26, 2010 by Leave a Comment
Not a word was said about caution. Not a word was offered about even the possibility of a major trend change in the market…
