Tag: elliott wave international

"Harvard Economist Is Pulling His Money From Bank Of America"

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An excerpt from a new article by Terry Burnham, a former Harvard economics professor.

By Elliott Wave International

EWI's president Bob Prechter has been warning about the safety of the U.S. banking system for a while.

Enjoy this excerpt from a new article by Terry Burnham, a former Harvard economics professor, author of "Mean Genes" and "Mean Markets and Lizard Brains", who spoke at last year's Socionomics Summit in Atlanta.

Mr. Burnham's article appeared on pbs.org on January 30 and was quickly picked up by Zero Hedge.

Last week I had over $1,000,000 in a checking account at Bank of America. Next week, I will have $10,000.

Why am I getting in line to take my money out of Bank of America? Because of Ben Bernanke and Janet Yellen, who officially begins her term as chairwoman on Feb. 1. Continue reading ""Harvard Economist Is Pulling His Money From Bank Of America"" →

Snapchat and the Disappearing Bears in the Stock Market

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See what happens in the financial markets when the bears vanish

By Elliott Wave International

If Inspector Gadget or Maxwell Smart had lived in the digital age, their bosses would have used the smartphone app Snapchat to deliver their secret missions.

Snapchat is a popular app with about 8 million users that lets your smartphone send a photo that self-destructs seconds after your recipient views it. As of September 2013, users were sending about 350-400 million vanishing messages a day -- which compares with the 127.5 million shares that changed hands in the Dow on Jan. 27, 2014.

But when Evan Spiegel, the Stanford student who came up with the idea, unveiled it to his product design class in 2011, his classmates gave it a thumbs-down. Disappearing photos? Who will use it? Little did his classmates know how the app, originally called Picaboo, would go on to capture the attention of teenagers and young adults. And even a few older folks who want to connect with them, such as 51-year-old Senator Rand Paul, who recently signed up to woo younger voters.

The idea of the disappearing photo applies beautifully to the situation in the stock market today. Pessimists on stocks are disappearing quickly. And so are bearish analysts. Not in 10 seconds, but they are still doing a version of a Snapchat disappearing act. Here's how The Elliott Wave Financial Forecast describes it (emphasis added) in this excerpt from our just-released 2014 State of the Global Markets report: Continue reading "Snapchat and the Disappearing Bears in the Stock Market" →

Happy 100th Birthday, Fed

Posted on by The INO.com Team

Excerpted from Elliott Wave International's market analysis

By Elliott Wave International

On December 23, the U.S. Federal Reserve celebrated its 100th birthday. When legislation creating its existence was signed on December 23, 1913 (in a sneaky move during a holiday week), Congress granted the Fed a monopoly on creating dollars backed by debt.

The ongoing QE program is an unprecedented use of that power. This chart of the Fed's stated capital of $55 billion compared to its total assets of $4 trillion shows the extent to which the Fed is the focal point of dollar creation and therefore credit creation.

As John Hussman at HussmanFunds.com points out, this ratio puts the Fed's leverage at a mind-boggling 73-to-1, making the average hedge fund manager (at 2.48-to-1, according to BofA Merrill Lynch's November survey) look like a conservatively invested widow by comparison. Continue reading "Happy 100th Birthday, Fed" →

Historic Optimism in the Stock Market - What Does it Mean?

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By: Elliott Wave International

How do you know when the market is getting ready for a change? This quote from Bob Prechter's best-selling book, Conquer the Crash, looks at investor psychology at extremes in the markets:

The engine of high stock market valuation is widely shared optimism. The greater the degree of the advance that is ending, the greater the optimism at its peak. Optimism also tends to remain strong in the early stages of a bear market.

Today, how optimistic are market participants? Bob dedicated an entire issue of his Elliott Wave Theorist market letter to looking at the level of optimism in the markets today. These two charts, excerpted from that letter, show just a piece of the story. Learn how you can get the entire issue, with 15 eye-opening charts, for free. Continue reading "Historic Optimism in the Stock Market - What Does it Mean?" →

15 Hand-Picked Charts to Help You See What's Coming in the Markets

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Everyone uses gas: See this chart that shows why its price is heading lower

By Elliott Wave International

Have you ever seen price charts that tell a story clearly? Here is a perfect example from Robert Prechter's most recent monthly publication, The Elliott Wave Theorist.

By combining headlines from newspapers with the price chart for retail automotive gasoline, Prechter paints a clear picture -- that you can see for yourself -- as to why gas prices will probably go much lower.

Prechter chose 14 more charts like this one to explain to his subscribers where the f Continue reading "15 Hand-Picked Charts to Help You See What's Coming in the Markets" →