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.
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.
“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 […]
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.
Get 7 free lessons that teach you techniques that you can immediately apply to find high-confidence trades – from one of the world’s foremost market technicians, Elliott Wave International’s Jeffrey Kennedy.
If there’s ever been a time to resist the impulse to follow the investing crowd, now is that time. Large speculators are making a bet that’s four times larger than what they made in January 2008. Take a look at this chart.
The Federal Reserve announced last month that they would start to reduce their $4.5 trillion balance sheet in October, thereby starting the process we call Quantitative Tightening (QT). As expected, they are aiming to do it gently and quietly, by not reinvesting bonds as they mature, starting with sums of around $6 billion of Treasuries and $4 billion in Mortgage-Backed Securities (MBS). The scale of non-reinvestment will gradually increase. Once in full swing, the Fed’s balance sheet could reduce by up to $150 billion each quarter.
Here at Ellliotwave International we studied investors behavior for nearly 40 years. A huge benefit of all that study is being able to study today’s stock market to the major market market tops and bottoms of the past. This Mutual Fund Vs Money Market Ratio ( 30 years of historical chart) shows extreme sentimental indications which shows how riskier the investments in today’s stock market compared to 2000 and 2008.
In 2013, our chief commodity analyst Jeffrey Kennedy co-authored an invaluable resource titled “Visual Guide to Elliott Wave Trading” in which he explained how combining Elliott analysis with technical methods enables traders to identify price action moving with, and against the larger trend.
The market itself provides its own clues about its future price action. One such clue is found in higher-beta small cap stocks vs. lower-beta blue chips. Get our take.