Tag: elliott wave

Apple's iPhone, Germany, the Fed: Why It's All Irrelevant to the Market's Trend

Posted on by The INO.com Team

A lot of people know that R.N. Elliott discovered the Wave Principle.

Yet few are aware that Elliott made another observation during his years of studying the stock market.

As the Wave Principle forecasts the different phases or segments of a cycle, the experienced student will find that current news or happenings, or even decrees or acts of government, seem to have but little effect, if any, upon the course of the cycle. It is true that sometimes unexpected news or sudden events, particularly those of a highly emotional nature, may extend or curtail the length of travel between corrections, but the number of waves or underlying rhythmic regularity of the market remains constant [emphasis added].

R.N. Elliott, R.N. Elliott's Masterworks, pp. 158-159

What a stunning insight: Even major news does not alter the market's main wave pattern! This seems to defy logic because most people believe that news and events are the very things that drive the stock market. Continue reading "Apple's iPhone, Germany, the Fed: Why It's All Irrelevant to the Market's Trend" →

When an Over-Ripe Market is Ready to Spoil

Posted on by The INO.com Team

Anyone who enjoys eating fruit knows there's a fine line between ripe and over-ripe.

If it sits in the fruit bowl too long, over-ripe turns rotten.

As experienced investors know, the stock market goes through similar phases. An overbought, or over-ripe, market can spoil quickly.

Take a look at this chart for example (wave labels removed), and ask yourself, is the stock market on the verge of spoiling? Continue reading "When an Over-Ripe Market is Ready to Spoil" →

The Surge Higher in U.S. Markets: "The Stage is Being Set"

Posted on by The INO.com Team

Elliott Wave International has long observed that external events do not alter the dominant trend of financial markets -- not even major events like wars, natural disasters, terrorist attacks, political assassinations or any other news that makes headlines.

Now, it is true that news can sometimes have a near-term effect on market prices. Continue reading "The Surge Higher in U.S. Markets: "The Stage is Being Set"" →

Witness the Epic Battle Between Investor Hope and Investor Fear

Posted on by The INO.com Team

By Elliott Wave International

Can an investor ever know enough about financial markets to make a truly informed decision?

Even professionals must cope with imperfect knowledge, and the constant uncertainty that comes with it. That's why every investor looks to others for signals about what to do. Continue reading "Witness the Epic Battle Between Investor Hope and Investor Fear" →

The Day of American Austerity: What Will It Look Like?

Posted on by The INO.com Team

By Elliott Wave International

Since the start of the European sovereign debt debacle, the word "austerity" has been bandied about a lot.

It wasn't an everyday word, and may send some people to the dictionary. Merriam-Webster defines "austerity" this way: enforced or extreme economy.

But even knowing this definition might leave one wondering how "austerity measures" relate to Europe's debt crisis. The Associated Press (5/13) provided this overview: Continue reading "The Day of American Austerity: What Will It Look Like?" →