Dow Rallies, Dow Falls: What's Driving Volatility?
Last Friday (February 5) was yet another interesting day to compare the stock market action with the explanations from conventional analysts. (This show never gets old, I swear.) Around midday, the Dow was down almost 170 points; everything pointed to another grim day. But then the blue chips reversed and closed higher. Don't look for a good "fundamental" explanation: There was none.
U.S. Dollar Soars To A Seven-Month High: Will This Comeback Story Stay?
It's the comeback story seen the world over, and no, I'm not talking about the New Orleans Saints winning the Super Bowl. I'm talking about the long-time currency underdog -- the U.S. dollar -- overcoming the mainstream odds to pull off a surprising rally to seven-month highs.
Copper Prices Plunge: Is The Bull In Trouble?
On Friday, February 5, the words "hammered," "catastrophe" "punished" and "plunged" were used to describe the recent action in Copper prices. As I write, the red metal stands at its lowest level in three-months. This is the complete opposite of the "red hot" performance widely expected of copper for the start of 2010...
1 Point Explains Why 2010 Will Stand Out for Investors
The very center of the wave structure—the most volatile point in an impulse—should occur in 2010 when the market reaches a third-of-a-third wave on many levels. Find out why that's so important.
Soybean Prices: Will the Past Predict the Future?
Unlike the stock market, Soybeans experienced little of the slight gains of the first days of February. With such gloomy news, Soybeans' problems will likely persist, right?
Gold Prices In Free Fall: Safe Haven My Asparagus
On Thursday, February 4, gold prices took a front-row seat on the Nosedive Express: In just two hours of morning trading, the yellow metal plummeted more than $40/ounce -- its fastest price drop in more than 14 months. As for why -- well, according to the mainstream experts, a slew of negative economic news took the wind out of gold's upwardly-mobile sails; namely:
EUR/USD Falls Hard: What's Next? Find Out FREE
On February 4, the EUR/USD fell hard. The mainstream forex analysts blamed it on Mr. Trichet's statement, but Elliott wave patterns in the EUR/USD foretold the euro weakness way in advance. Here's your FREE chance to read latest Elliott wave forex analysis now.
U.S. Stocks: Will The Bears Relinquish Control?
In case you were hiding out Tiger Woods' style far away from the mainstream media over last month, let me be the first to say: January saw an abrupt end to the US stock market's record-setting winning streak. Last count, the Dow Jones Industrial Average plummeted 4% in its worst monthly loss in a full year.
"Anger in the Air"
Pessimism On Display, Politically and Financially:
Dare We Ask, "What Could Follow?"
Latest Forex Forecasts, Yours FREE Now: Here's How
Free Forex Forecasts from Bob Prechter's Elliott Wave International! Now through 12 noon on February 10. You know how confusing it can be to gauge forex market trends by watching news reports. Tired of the guesswork? Then try something different right now, free, with EWI's most popular Specialty Service, Currencies. Get instant FREE access now.
CRB Commodity Index: Wave Patterns Tell An Exciting Tale
Here's the thing: On January 31, 2010, the Reuters/Jefferies CRB Index of Commodities pulled a lemming: prices dove head first over a cliff to land at their lowest level in four months. Fact is though, no outside factors have been behind the market's fall, as the chart shown here makes plain...
GDP Up, DJIA Down: What Happened?
Last Friday (January 29) was a great day to watch the stock market and compare the price action against the explanations from analysts. Throughout the day, investors and analysts simply focused on the news stories that best fit that hour in the market... This seems like a flawed approach, and here's why.
The Dow: A Pattern Repeats Itself. Will History Do The Same?
Most fairytales have a catch word or phrase that, when repeated, makes all the danger and pain magically -- "poof!" -- disappear into thin air: "Rumpelstiltskin," "Beetlejuice," "There's no place like home, there's no place like home." Today, the mainstream financial world lives in a fantasy where such a word exists, too; that word is "different."
Why Topping Markets are Slow to Top
Unlike commodities, stocks don't just blow off. So what do they do, and why does it take them so long to do it?
Don’t Be Like Isaac Newton
Newton dominated scientific thought for 300 years but didn't "get" crowd psychology
Coffee Prices Cool To A Three-Month Low: Now What?
In the theory of "market fundamentals," bullish news events cause prices in a financial market to rise; and, bearish news events trigger declines. In reality, however, this is not always the case. Take the Coffee market, for instance. At the very start of 2010, coffee prices were boiling to their highest level in seven months.
EUR/USD Breaks Below Major Price Point
On January 27, the EUR/USD (exchange rate between the euro and U.S. dollar and the most widely trade forex pair) slipped below $1.40 for the first time in six months. In other words, the dollar, considered by most analysts all but doomed a short while ago, now stands at a 6-month high against its main competitor. Ironic? Paradoxical? You bet. Here's more on that from Robert Prechter.
Forex: How to Trade Around Fed's Decisions on Interest Rates
Around data releases, forex; traders often buy the U.S. dollar -- but then sell it just as quickly (or vice versa). Trading at such moments can be dangerous, but it helps if you know Elliott wave analysis. Watch this classic free 8-minute video where the editor of EWI's intensive Currency Specialty Service Jim Martens explains how.
Part II: Trade What You SEE, Not What You BELIEVE
This is part two of the January 18 interview with Roberto Hernandez, a talented S&P trader. "I agree with Bob Pechter that this bear market is not over. My oscillators are pointing down, so we are at the very least looking at a substantial correction. But the volatility will definitely increase again. And as I said before, if you are not experienced with trading in volatile markets, this is not the time to cut your teeth as a trader."
Will Sugar's Winning Streak Continue?
And the award for best performing commodity of 2009 goes to... sugar. Last year, sugar prices skyrocketed 128%, to land at their highest level in nearly three decades. No sooner had the market accepted this honor than the financial blogosphere became log jammed with post after post debating whether the great "Sugar Rush" was here to stay.
Do You Know What Drives Severe Market Declines?
Will the next major move in the U.S. stock market be similar to the move depicted by the chart of the SASE Index?
By Plunging 500-Plus Points, The Dow Fulfilled Its Near-Term Script
The VIX reading was one of the indicators that led EWI analysts to publish a bullish outlook for stocks in the period from March-June of 2009, in our Elliott Wave Financial Forecast publications. In March, with U.S. stocks circling the drain of a 12-year abyss, we anticipated a powerful rally that would bring the Dow Industrials to the 10,000 level at minimum, with an accompanying surge in positive sentiment readings.
EWI's Asian Markets Analyst to Give 2010 Outlook in Cairo
Elliott Wave International analyst Mark Galasiewski will use Elliott wave analysis to describe what lies ahead for Asian and Middle Eastern markets at the Fortress Markets Forum 2010 Outlook in Cairo, Egypt, on January 29, 2010.
What's Behind The Fall In Oil Prices? See CHART
In just two short trading days (January 21 and 22) oil prices have gone from boiling to toiling. Crude fell more than 4% to land at its lowest level in one month. According to the mainstream experts, one main factor is to blame for turning the blue skies in oil gray: A doubly-bearish January 21 Energy Information Administration (EIA, for short) report revealing these two details:
Bernanke's Burn Notice -- Why Now?
Like a spy who gets a burn notice (as depicted in USA Network's hit series, Burn Notice), suddenly he lost his support. No one trusts him anymore. Why the sudden turnaround in his fortunes?
A Comment On Today's Triple-Digit Stock Market Decline (Update)
On Wednesday, January 20, the DJIA took a 100-plus point leap over the equity cliff edge. As for why, well, the experts of Wall Street set their sites 7,400 miles to the east, on China. Here, the following headlines from the day step in:
Trade What You SEE, Not What You BELIEVE
You may already know Roberto Hernandez's name; some of you may have even met him at Dick Diamond's trading course where Roberto is Dick's assistant. Here, Roberto gives you his thoughts on trading in challenging markets -- like the ones we saw during the 2007-2009 crash.
Coffee: Knowing When A Pattern Will End
When coffee prices soared to near 16-month highs in early January 2010, the mainstream experts cited one main factor for continuing to provide upward support: Mother Nature. But then suddenly, on January 11, the "weather-related" wind at coffee's back vanished. Coffee prices turned down in a powerful decline to the near one-month lows we see today.
The Fed-led Long Bond Rally That Never Was
If aliens landed on earth today and asked, "Take Us to Your FINANCIAL Leader," the final destination would not be the White House. It'd be the Eccles Building, the famous headquarters of the Federal Reserve Board. The story goes that the Fed is the all-knowing, infinite-power wielding "OZ" of the U.S. economy. With the flip of its monetary-policy switch, the central bank can manipulate the course of any financial market in the direction of most benefit.
Forex (VIDEO): Elliott Wave Pattern "With A Twist"
In this classic 5-minute video, the editor of Elliott Wave International's Currency Specialty Service Jim Martens tells you about so-called flat corrections -- a common Elliott wave pattern that sometimes comes "with a twist," as Jim explains using charts of the U.S. Dollar Index and the GBP/USD (cable).
Socially, What Happens During a Bear Market?
What does a grand-scale bear market -- the kind that Elliott Wave International predicts within this decade -- look like in everyday life? Reporters have asked Bob Prechter this question in many ways.
I Heard the News Today (Oh Boy)
How about bigger news? Consider what happened on November 22, 1963 in Dallas, Texas. Look at the Dow Jones chart here ...
Forex (VIDEO): What Time Frame Is Best For Trading With Elliott?
Watch this free 7-minute video where the editor of Elliott Wave International's Currency Specialty Service Jim Martens answers a frequent subscriber question, using charts of the yen (USD/JPY) and Canadian dollar (USD/CAD) as examples. FREE video.