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September 7, 2012:When an Over-Ripe Market is Ready to Spoil
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What does the true state of the economy mean for your investments? EWI's free report, The Economic Rot Beneath, reveals important economic numbers that you are not currently reading in the mainstream headlines - but you should be. For instance, did you know stocks priced in real money (gold) are down 87%? Or that U.S. manufacturing jobs are half of what they were in 1979? Or that housing starts per capita are back to 1922 levels? Learn what's really going on in the U.S. economy.Download your free report now >> |
On December 14th, Prechter explained good earnings appear at market tops once again in CNBC:
Big Picture: Stocks in Free Fall Territory
And see EWI's long-term forecast in the updated "Free Fall" chart - August 18, 2011
In the May 2008 issue of his monthly Elliott Wave Theorist, Robert Prechter showed this chart of the Dow Jones Industrials. As you can see, prices go back to the 1970s.
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Please note that on the day this chart published (May 16, 2008), the Dow closed at 12,987 -- barely eight percent below the Dow's all-time high of the previous October.
Yet, as you can also clearly see, Prechter labeled the white space below the May 2008 price level as "Free Fall Territory."
At the time, no one else dared to publish such a bearish forecast. This was before the Lehman bankruptcy, the bailout binge, the home foreclosure crisis, and certainly before the worst of the stock market collapse.
In his June 2011 Theorist, Prechter published an update to the chart above, and here's the major difference: The updated chart "telescopes out" by one full degree of trend. Prices go back to the 1930s. The scale of the white space surrounding this chart's "free fall territory" label will show you what Prechter truly means.
His commentary in that issue also observed that
- "the March-April [2011] rally was one of the most passionate bouts of stock buying I have ever witnessed."
Bob Prechter made this observation not in admiration, but as a warning.
We believe this warning is still valid! Please take the time to read Pechter’s excellent book Conquer the Crash to understand how market psychology works and can still lead to another major crash soon.
In his monthly Elliottwave International Elliott Wave Theorist newsletter, Prechter explains the limited upside possibility and the major downside target for DOW. He believes March lows will not hold. Please read his excellent book Conquer the Crash to understand why. Prechter turned bullish in February 2009 with a DOW target of 10000 in his Elliott Wave Theorist newsletter. Now he thinks the bear market rally has already ran it’s course as we near the upper end of the target range (11600) he has presented back in August 2009. Subscribe to his short term update to learn support and resistance levels.
Have We Seen the Stock Market Bottom? The Big Picture
Robert Prechter explains the big picture with two unique charts that reveal the answer to the question: Where is the stock market bottom?
Housing Bubble - What Caused it?
Housing prices have been inflated along with stock prices for the last few decades due to credit inflation that FED has fostered. Here is a summary of what caused the housing bubble and why deflation hit housing.
Is it a Bear Market Rally?
Prechter on Bloomberg, June 19, 2009:
After predicting the last few months of bull market back in February, Prechter is expecting a pullback and then a rally into the summer to complete wave 2 with great crowd optimism that will lead to the wave 3 crash.
Stock Market Bottom Call - February 2009
Stock Market Top Call - October 2007
Become a member at Elliottwave International to get access to upto date financial forecasts:
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