Is this the start of a global financial crash?
“When the alarm goes off and the dreamers awake, it will be pandemonium in the stock market.” — Bob Prechter, from the just-released Elliott Wave Theorist.
You would agree that markets around the world have served investors a lot of surprises lately:
- Crude oil just fell below $40 a barrel, a 6 1/2-year low.
- Gold — after hitting lows not seen in five years and disappointing just about every gold bug on the planet — is up big and trading above $1160 an ounce.
- The U.S. dollar, doomed to failure by the mainstream consensus a few years ago due to the Fed’s “inflationary” QE policies, is enjoying strength not seen in years.
- Chinese stocks, up almost 60% YTD into their July peak, suddenly crashed, sparking fears of global contagion.
And almost every step of the way, Elliott wave price patterns have guided us and our subscribers:
- Last November, a joint bulletin from our Elliott Wave Theorist and Elliott Wave Financial Forecast called the low in gold and silver to within two days. Last month, on July 24, we issued another bullish bulletin — the exact day of the intraday lows in gold and silver after four years of decline.
- On June 6, 2012, we sent to subscribers a Special Report calling the low in 10-year T-bond yields after 31 years of decline. The top in T-bonds came right around the same time.
- Crude oil has followed its Elliott wave script since 1998, including the all-time high near $150 in 2008 and the more recent secondary peak — one from which oil fell to $40 a barrel this week.
- Wave patterns warned us of the huge declines in commodities — and the huge rally in the U.S. dollar, both against nearly universal disagreement.
Plus, says Bob Prechter in the new Elliott Wave Theorist,
“With rare foresight, our European and Asian analysts predicted the failure of both the Swiss franc peg and the Chinese yuan peg, dramatic events that caught economists completely off guard. You have to know a lot about markets to do these things.”
Yet the credit doesn’t go entirely to our analysts — it goes to the Elliott wave method. For the past 80 years, waves have warned thousands of investors about risks — and new opportunities! — at countless market junctures.
This week’s #1 story is the 1000-point sell-off in the Dow. Both the DJIA and the S&P 500 are now solidly in the red for 2015. Even the white-hot NASDAQ is down 6% for the week. Are the “bubble days” really over?
Even the white-hot NASDAQ ended the day with a 3% decline
Is this a “normal correction” — or are the “bubble days” really over?
Prechter’s new Elliott Wave Theorist — which got published on Wednesday (Aug. 19) — says:
“When the alarm goes off and the dreamers awake, it will be pandemonium in the stock market.”
We invite you to read this special free report “Pandemonium in the Stock Market” from Elliott Wave International. It features analysis and insight into the conditions leading up to the market turmoil we’re seeing right now.
Free Report: Pandemonium in the Stock Market
In this just-released report, you’ll see new excerpts from our two flagship monthly publications, The Elliott Wave Theorist and The Elliott Wave Financial Forecast. Get valuable insight into the volatility we saw in the markets this week. We think you’ll come away better prepared than most investors.
This article was syndicated by Elliott Wave International and was originally published under the headline Stocks Slide Globally. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.