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Stock Market Timing

May 3, 2013: On Tuesday afternoon (April 23), Robert Prechter, a famed market technician known for calling the roaring bull market of the '80s, the 1987 crash and the March 2009 stock market low, published an urgent new issue of his Elliott Wave Theorist.

This issue is so powerful -- and so urgent -- that EWI has unlocked the first two pages for you to read with no obligation to buy.

Every issue of the Theorist provides you with a unique look at tomorrow's news today. This issue meets that high standard and more. It's one of the most powerful and revealing issues of the Theorist subscribers will ever read. Now, Prechter is not always right. Unfortunately, no market analyst is. But there's one thing his readers know for certain: When Prechter revs up his urgency, he sees something big on the horizon.

Due to the timely nature of this issue, EWI cannot make the first two pages available indefinitely, so they've set a date of May 8 to end this special promotion -- at which time the first two pages will no longer be available for free.

Please follow this link to get instant access to the first two pages of Prechter's urgent market letter

November 1, 2012:

U.S. Stocks On a Collision Course with Market History
The past offers answers about the future; market patterns do repeat themselves.

Next time you look at a clear night sky, keep in mind that what you see is the distant past.

Most stars are so distant that it takes millions of years before the light is visible to us.

Even so, astronomers can learn much about the future of the universe by studying the past.

NASA astronomers announced they can now predict with certainty the next major cosmic event to affect our galaxy, Sun, and solar system: the titanic collision of our Milky Way galaxy with the neighboring Andromeda galaxy.
NASA, May 31, 2012

That collision is expected in some 4 billion years.

The Hubble Space Telescope also recently revealed the farthest-ever view of deep space. NASA noted, "The images allow us to follow the development of the universe."

And back here on earth, Elliott wave practitioners study the market'spastprice patterns to determine the probable development of thepresenttrend.

You see, price patterns repeat themselves at all degrees of trend.

Indeed, Robert Prechter recently discussed how past wave patterns are similar to what's unfolding now:

The ... rallies of 1929-1930 and 1938-1939 are good examples.
The Elliott Wave Theorist, September 2012

Both of those rallies came after steep market declines. Likewise, the present rally of three and a half years commenced after the 2007-2009 market plunge.

Be aware: Both of those past rallies in turn fell back into severe market declines.

The Dow Industrials lost 86% on just thesecondleg of the 1929-32 bear market, and surrendered 41% during the 1939-42 downtrend.

U.S. markets are likely on a similar collision course with history. The present price pattern is unfolding at a larger degree of trend than those previous two periods.

Position your portfolio for what Prechter calls "History in the Making."

To that end, EWI offers you a no-obligation education in Elliott Wave analysis. See below for details.


Crash Course

Learn the Why, What and How of Elliott Wave Analysis

The Elliott Wave Crash Course is a series of three FREE videos that demolishes the widely held notion that news drives the markets. Each video will provide a basis for using Elliott wave analysis in your own trading and investing decisions.

Access the Elliott Wave Crash Course now >>

September 7, 2012:

When an Over-Ripe Market is Ready to Spoil
Reliable internal measures tell a story investors need to know

Anyone who enjoys eating fruit knows there's a fine line between ripe and over-ripe.

If it sits in the fruit bowl too long, over-ripe turns rotten.

As experienced investors know, the stock market goes through similar phases. An overbought, or over-ripe, market can spoil quickly.

Take a look at this chart for example (wave labels removed), and ask yourself, is the stock market on the verge of spoiling?

Overbought Stock Market

The Aug. 10 Financial Forecast Short Term Update provides commentary to go with the chart.

[An] indicator that has moved to an overbought condition is 10-day NYSE Trin (advance/decline ratio divided by the up/down volume ratio). Wednesday's close [Aug. 8] was .937, which was the most overbought level since March 26, when 10-day Trin closed at .900 (see gray vertical line). That was five days prior to the April 2 S&P top. It's certainly possible that Trin becomes even more overbought prior to a market high, but it doesn't have to. Current levels are the exact opposite of those that attended the August, October and November 2011 lows, as marked on the left side of the chart.

EWI also looks at several other internal measures.

A healthy bull market sports broad participation among different sectors and indexes. Up days are consistently accompanied by high volume; momentum is strong.

The indicators EWI watches suggest this market is indeed overbought and still ripening.


Economic Rot

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.

Stocks in Free Fall Territory

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:

Elliottwave International

 

 

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Trading the Stock Market - Stock Market Timing

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