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May 23, 09:59 AM
Robert Prechter's new, 21-page Elliott Wave Theorist (published monthly since 1979) shows you 23 charts that explain why "The monetary-financial world seems to be setting up for an epic battle." Start your risk-free trial subscription now -- and get your 2nd month FREe >> 
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Facing the Market's Music: The Mother of All Contrarian Indicators?
Was the extraordinary Facebook hype a sign of unfriendly market days ahead?

By Bob Stokes
5/23/2012 5:00:00 PM

The bigger story goes beyond a rough start for Facebook: the market has lately been  unfriendly to several social media stocks. Take a look at this chart and commentary from the...

Filed Under: cultural trends, Elliott wave, investor psychology, Magazine Cover Indicator, Nasdaq Composite, Traders, trading lessons

Category: Stocks


Five Fatal Flaws of Trading
Preview some tips from Jeffrey Kennedy, head of EWI's brand new Elliott Wave Junctures service.

By Jill Noble
5/18/2012 5:30:00 PM

While there is no magic formula, EWI Senior Instructor Jeffrey Kennedy has identified five fundamental flaws that, in his opinion, stop most traders from being consistently successful. For more information from Jeffrey Kennedy on improving your trading, preview EWI's brand new service, Elliott Wave Junctures.  

Filed Under: Club EWI, Elliott Wave Principle, investment decisions, investor psychology, Relative Strength Index (RSI), stochastics, successful traders, Traders, trading lessons

Category: Education


Big Money Poll: Will the 84 Percent Get It Right?
Stock market: most money managers are optimistic about the next 6-12 months

By Bob Stokes
5/18/2012 5:30:00 PM

Ten days before the most recent stock market top (May 1), an April 21 Barron's online headline read: "...Big Money Poll Finds Money Managers Are Bullish." But since the start of the month, the Dow Industrials has given back over 900 points. What gives?...

Filed Under: Dow Jones Industrial Average (DJIA), Elliott wave, investor psychology, mutual funds, Robert Prechter

Category: Stocks


Good-bye Stock Trades: Look Who's Had Enough
Since 2008, stock trading has continued to fall. What do we see ahead?

By Bob Stokes
5/14/2012 5:30:00 PM

During Q1 of 2012, trading on the New York Stock Exchange was down 23 percent vs. last year. But if many individual investors have stayed out of the market, how has the S&P 500 more than doubled? Moreover, what do we see ahead?...

Filed Under: banks, credit default swaps, Elliott wave, financial forecast, investment decisions, investor psychology, liquidity, risk appetite, Robert Prechter, stock indexes

Category: Stocks


3 Heavyweight Bulls: Is the Bear On the Ropes?
Stock market bear: going down for the count?

By Bob Stokes
5/2/2012 4:30:00 PM

What a way to kick off May: the Dow Industrials close at a four-year high and three icons of the 1990s bull market basically say we've only just begun. Is investor psychology too optimistic?...

Filed Under: Dow Industrials, Elliott wave, financial forecast, herding, investor psychology, market forecasts, monetary policy

Category: Stocks


The Manic-Depressive Stock Market: What to Make of It
The psychology of the market may be teetering on the edge

By Bob Stokes
4/26/2012 4:45:00 PM

The stock market: one week it acts like Dr. Jekyll, the next week it's Mr. Hyde. What do we make of these dramatic fluctuations?...

 

Filed Under: Bear market, Efficient Market Hypothesis (EMH), Elliott wave, herding, investor psychology, market crash, market forecasts, Nasdaq Composite, risk management, Robert Prechter, U.S. STOCK MARKET, volatility

Category: Stocks


Can You Spot the One Financial Myth From This List?
Exposing widely-held but false notions about financial markets and the economy

By Bob Stokes
4/24/2012 5:45:00 PM

In the list, all of the statements are true except one. Can you pick out the myth?...

Filed Under: Elliott wave, Interest Rates, investor psychology, market myths, personal finance, Robert Prechter, stock indexes, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


S&P 500: We've Seen a Pullback, But...?
Should we expect more?

By Bob Stokes
4/9/2012 4:45:00 PM

Some market participants are saying that the correction may have a little more to go, yet they also think a pullback will be shallow and the market will soon continue its climb. In other words: the quotes above represent the language and market sentiment of the 1990s. We know how that decade turned out...

Filed Under: Dow Industrials, financial forecast, history, investor psychology, mania, Nasdaq Composite, S&P 500, sentiment, Short Term Update

Category: Stocks


1937 Stock Market Action: A Model for Today?
Market price forms repeat

By Editorial Staff
3/20/2012 5:30:00 PM

Filed Under: Elliott wave, investor psychology, market forecasts, Robert Prechter, technical indicators, U.S. STOCK MARKET

Category: Stocks


The Apple of the Stock Market's Eye: Just How High is High?
Everyone loves Apple shares, but for how long?

By Bob Stokes
3/9/2012 5:45:00 PM

Excitement over Apple shares has coincided with a stock market rally that just turned three years old. And some say that this rally leader could reach $1,000 a share. What does our analysis reveal about "Applemania"?...

Filed Under: herding, investor psychology, Short Term Update, steve jobs, Traders

Category: Stocks


That Bullish Feeling: "As Comfortable as Cotton Pajamas"
Is a trap being set?

By Bob Stokes
2/24/2012 5:00:00 PM

Are consumers and investors letting their guards down at exactly the wrong time? Well, the evidence about the economy shown in the two charts speaks for itself...

Filed Under: consumer confidence, Elliott Wave Theorist, investor psychology

Category: U.S. Economy


This Indicator Just Hit Multi-Year Lows: What Does It Mean for Stocks?
Where are the bears?

By Bob Stokes
2/6/2012 2:30:00 PM

A bullish consensus appears to be crystallizing. But that doesn't mean one should take a contrarian view for its own sake. One must look at the entire market picture, and ask, "Where are we in the market's main trend?" and "What are other indicators revealing?" We've asked and answered those questions...

Filed Under: bull market, Elliott Wave Theorist, financial forecast, herding, investor psychology, sentiment, Short Term Update

Category: Stocks


Facebook IPO: Will the Frenzy Fuel Share Prices?
Is Facebook worth $75-$100 billion of excitement?

By Bob Stokes
2/3/2012 5:30:00 PM

Should investors be concerned over too much Facebook excitement? Consider that the IPO filing comes after...

Filed Under: Elliott Wave Theorist, financial forecast, investor psychology, risk appetite, S&P 500, sentiment, Wall Street

Category: Stocks


S&P 500: The First 50-Point Drop
Investors don't always get what they expect.

By Bob Stokes
1/24/2012 5:00:00 PM

Investors are used to seeing prices rebound from dips. But the next time around, that rebound may not occur...

Filed Under: Elliott wave, investor psychology, S&P 500

Category: Stocks


The Stock Market Is Not Physics: Part IV

By Editorial Staff
12/22/2011 9:30:00 AM

Most people's thinking simply defaults to physics when analyzing financial events. But when we take the time to examine the results of applying that model, we find that it is not useful either for predicting or explaining market behavior.

Filed Under: Bear market, bull market, cultural trends, Elliott wave, Elliott Wave Principle, Elliott Wave Theorist, Elliott Wave trading, fundamental analysis, investment decisions, investor psychology, prechter, Prechter's Perspective, Robert Prechter, sentiment, social mood, socionomics, stock indexes, stock market cycles, technical analysis

Category: Classic Prechter


3 Convicts and the Stock Market
Beware the pitfall of linear thinking

By Bob Stokes
12/21/2011 5:00:00 PM

Nowhere is change more evident than in financial markets. The change is often slow and marginal, but sometimes it's sudden and immense. The latter sort always catches the majority of investors off guard. Why?...

Filed Under: Elliott Wave Principle, financial forecast, investor psychology, Robert Prechter, U.S. STOCK MARKET

Category: Stocks


The Stock Market Is Not Physics: Part III

By Editorial Staff
12/20/2011 10:45:00 AM

We have already seen that economic performance, earnings and inflation do not necessarily coincide with movements in apparently related financial markets. Is there any evidence that dramatic news events that make headlines, such as terrorist attacks, political events, wars, crises or any such events are causal to stock market movement?

Filed Under: Dow Jones Industrial Average (DJIA), Elliott wave, Elliott Wave Principle, investment decisions, investor psychology, market forecasts, market myths, Robert Prechter, social mood, stock indexes, technical analysis, terrorist attacks

Category: Classic Prechter


The Stock Market Is Not Physics: Part I

By Editorial Staff
12/12/2011 5:45:00 PM

People default to physics when predicting social trends. The Law of Conservation of Momentum makes possible our modern technological world. People rely on it every day. Despite its use in so many areas, however, it is inapplicable to predicting social change.

Filed Under: cultural trends, history, investment decisions, investor psychology, social mood

Category: Classic Prechter


Is a Real-Life "Breakfast at Tiffany's" Around the Corner?
Will luxury shoppers turn into Holly Golightlys?

By Bob Stokes
11/25/2011 12:30:00 PM

The trip from prosperity to hard times can be shockingly brief. Only a few city blocks separate Fifth Avenue and the South Bronx...

Filed Under: consumer price index, consumer spending, investor psychology, sentiment

Category: U.S. Economy


The Market Fools the Majority "at the Most Important Times" -- Like Now?
At major stock market tops and bottoms, it pays to join the minority.

By Bob Stokes
11/14/2011 5:00:00 PM

In the world of finance, the market has a deviously clever mind of its own -- forever fooling the majority by taking nearly any path except the one most investors expect. For example...

Filed Under: Dow Industrials, Elliott wave, investor psychology, market forecasts

Category: Stocks