Dow Theory is a time-honored market analysis tool. Its name comes from Charles H. Dow, co-founder of The Wall Street Journal.
With the recent news of airstrikes on Syria and a threat of a global war, this question is extremely relevant. But does war really cause stock markets to rise and fall?
There’s a widespread assumption that supply and demand drive oil prices. Almost all economists base their oil forecasts entirely on this premise, and so do many speculators.
If the oil industry ramps up production and increases supply, economists expect a drop in oil prices. If production decreases, or some other factors hint at supply constraints, they anticipate a rise in oil’s price.
The primary Fibonacci ratios that I use in identifying wave retracements are .236, .382, .500, .618 and .786. Some of you might say that .500 and .786 are not Fibonacci ratios; well, it’s all in the math. If you divide the second month of Leonardo’s rabbit example by the third month, the answer is .500, 1 divided by 2; .786 is simply the square root of .618.
After two decades of Mania Era asset bubbles and sentiment extremes, what now seems normal to many investors is actually highly abnormal. That’s right — many investors no longer fear asset bubbles. That is why too many will be caught off-guard when the Mania Era inevitably ends. Many investors are not frightened by the phrases “stock market bubble,” “housing bubble” or any other type of financial bubble.
By Monday, Feb. 26, the stock market rally that carried major indexes out of the depths of the recent sell-off came to within 1000 points or so of the DJIA’s Jan. 26 all-time high of 26,616. The next day, on Feb. 27, a major financial publication published this headline (Forbes): U.S. Stock Market Surge – ‘The Bull Market Is Back’
Every active stock market investor wants to know: Where are prices headed next? Most will scour the financial headlines, tune into financial television and talk to their broker or financial advisor in hopes of finding the answer. But, alas, this quest for market insight often leaves investors just as uncertain as before.
Did you know that the vast majority of portfolios are built on false assumptions? These false assumptions — or Market Myths — have been passed down across generations. They are so baked into investor psyche that no one ever thinks to challenge them… but we do. Do earnings really drive stock prices? Can the FDIC actually protect you? Is portfolio diversification a smart move? Download Market Myths Exposed now and find out whether your portfolio is built on flawed foundations. We guarantee you’ll be shocked to find the truth.
On January 23, Bitcoin fell below $10,000. That’s the second time in recent days that prices dipped below this psychologically important threshold. The headlines picked up on the drama: “Bitcoin tumbles below $10,000 and is now down 25% on the year…” (CNBC, Jan 23)
“The names may change, but the psychology remains the same.” By Elliott Wave International Have you ever compared chart patterns from history with financial markets today? Elliott Wave International can show you the unique value of doing exactly that. Why? Because patterns on market charts repeat themselves. It happens across the globe, regardless of time […]
“How to draw a trendline” is one of the first things traders and investors learn when they study technical analysis. Typically, they quickly move on to more advanced topics and too often discard this simplest of all technical tools.
When you are watching a pattern develop on a chart, how can you be sure that your Elliott wave count is correct? Elliott Wave International’s Senior Analyst Jeffrey Kennedy spent years designing his own technique to improve his accuracy. He came up with the Kennedy Channeling Technique, which he uses to confirm his wave counts.