Category: Stock Market

8 Indicators in 1: Here’s the Message of the Panic/Euphoria Mode. Prior model extremes occurred in March 2000 and October 2007. Elliott Wave International has been providing market analysis for more than four decades — which includes many bull/bear market cycles. That said, the public’s current market mindset — especially among inexperienced investors — is… Read more Panic and Euphoria

Penny Stocks Hit $2 Trillion Penny stocks are an investment vehicle that really has garnered the attention and speculation of investors in early 2021. They’re plunging headlong into off-exchange shares. I remember back when I started in the early 1980s at Merrill Lynch, there was a guy that walked in the office and he had… Read more Road to Riches via Penny Stocks?

U.S. Stocks: Here’s a Big Sign That “Sentiment Cannot Get Much More Extreme” The stock exposure of the most bearish active investment managers is revealing Relatively few investors want to bet against the stock market rally. As a Feb. 18 financial article says (CNBC): Short interest in the market has fallen to near-record lows. Indeed,… Read more Bullish Sentiment Extreme

Why Next Wave of Margin Calls Will Be FAR More “Disruptive” Than in 2000 or 2007 “Can investors afford to borrow anymore?” Financial history shows that every bear market has been followed by a bull market and vice versa. So, the current bull market will end sooner or later. The prior two bull market tops… Read more Margin Call Tsunami

Here’s Why Blind Contrarianism Failed in 2020. There is only one instance when the investing crowd is right. Yes, there are many times when the market’s Elliott wave structure suggests that an investor should take a position “against the crowd,” or put another way, be a contrarian. Prime examples are at market bottoms and tops.… Read more Contrarian Trade Failed in 2020

Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? When one of these groups acts, “the odds become high for a change of trend” It’s useful to know who is doing what in particular financial markets. You’ll find out why as we proceed, however, let’s first start off with some basic background… Read more Smart Money vs Dumb Money

Fear Grips Stock Market Short-Sellers — What to Make of It “This is easily the lowest wager against rising S&P rises” in the history of the data As you may know, short-selling a stock means that a speculator is betting that the price will go down. This is a lot riskier than taking a “long”… Read more Nobody is Selling Short – Is it a Top?

Gold: See What This Fibonacci Ratio Says About Trend A Fibonacci .618 retracement is a common reversal point in the markets Fibonacci numbers follow a sequence that begins with 0 and 1, and each subsequent number is the sum of the previous two (0, 1, 1, 2, 3, 5, 8, 13, 21, 34, and so… Read more Gold Fibonacci Retracement

This Stock Market Indicator Reaches “Lowest Level in Nearly 20 Years” Here’s what happened “the last time the 10-day put/call ratio made a lower extreme” After a big trend reversal, it’s not unusual for the correction to retrace much of the initial sell-off or rally. Thus, many investors are fooled into believing that the old… Read more Put/Call Ratio at 20 Year Low

When a trend is strong, related markets tend to move in unison. However, when a trend is near exhaustion — a bullish or bearish trend, “non-confirmations” often occur. A non-confirmation occurs when one market makes a new high (or low), but a related market does not. As cases in point, our November Global Market Perspective… Read more Why Non-Confirmations Matter