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Elliott Wave page launch
The mainstream media is almost unanimous in declaring that the recession is over and many analysts/advisers are saying it is now time to buy stocks, after the market has rallied more than 50%. Where were these people back in March 09 when the market started its rally? That would have been the right time to buy stocks and they should have advised people to buy stocks then. I would be very wary about taking the advice of those who did not see the crash coming in 2007, or the rally coming in 2009. One analyst who correctly predicted the crash and subsequent rally was Robert Prechter who recommended shorting the market in July 2007 and covering those shorts in February 2009. Bob Prechter mainly provides his advice to paying subscribers of his advisory service but he is also frequently interviewed on Bloomberg. The following is a link to a Feb 24 article in Bloomberg.com “Prechter advises closing short position on stocks” and below is a video interview conducted on 25 February 2009.
When I was doing my research on Inflation vs Deflation, I found myself slowly drawn more and more to the deflation camp. As a practitioner of Technical Analysis, I was also quite curious to learn more about Elliott Waves, which is primarily what Robert Prechter uses for his analysis and predictions. I decided to download some material from the “free stuff” section of his website to learn more about Elliott Waves. After reading some of the free articles and other free resources, I decided to sign up as a paying subscriber for Elliott Wave International (EWI) financial newsletters. I general do not like to sign up for advisory services as I prefer a DIY approach i.e. learn the techniques and do my own analysis. However, while I am learning, I feel I need a bit of hand holding so it would be good to look at how the experts do their analysis using Elliott Waves. Unlike most US based advisory services, EWI also covers the Asian-Pacific markets and my subscription includes monthly financial forecasts and thrice weekly short-term updates on Asian-Pacific markets including Australia, China, Hong Kong, Japan, Korea and other regional markets. The subscription is also on a month-to-month basis, so I don’t need to commit for longer than one month and can terminate the service anytime, if I don’t need it anymore.
Interestingly, as most economists are expecting a recovery and the return of the bull market, EWI is expecting the bear market to resume and the next leg down (Wave 3) will be even bigger than the Oct 2007 to Feb 2009 fall. To keep interested readers updated, I have also signed up as an EWI affiliate so I put links to free updates on this web site. I have set up a new page called ElliottWave for this purpose. (Disclosure: as an affiliate, I will be paid a commission if readers sign up for EWI subscriptions through this website). Robert Prechter also wrote the New York Times best-selling book “Conquer the Crash” which was first released in 2002. A second edition of this book with 188 new pages (480 pages in total) is due to be released in Nov 2009. The book can be pre-ordered on Amazon.com and a free “Conquer the Crash Collection” from this book, which includes 8 lessons on topics critical to your financial survival is also provided by EWI. Learn more about this resource, and get your free access here.
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Thanks for the great post! keep it coming
Thank you for your kind comment, its a real encouragement for me to keep writing. Sorry I took so long to reply coz your comment went to the spam folder and I did not check it for a while.