Dow Theory is a time-honored market analysis tool. Its name comes from Charles H. Dow, co-founder of The Wall Street Journal.
The basic Elliott wave pattern for financial markets is five waves in the direction of the main trend with corrections, i.e., moves against the trend, unfolding in three waves.
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’
“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 […]
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.
We all love a bargain… Except when it comes to stocks. The reason boils down to uncertainty. We know what our fruits and vegetables should cost at the grocer’s — but we’re far less certain about how much to pay for a blue-chip stock or shares in an S&P 500 Index fund.
Stock picking is losing favor. On the other hand, passive investing is growing in popularity. This fits with the stock market’s Elliott wave pattern. The mania is not over, but the end might be closer than many investors realize