2010 Tea Parties and 1970s Anti-War Rallies: Polar Opposites but Same Mood
Do you think that a few Tea Party rallies is all we're going to see? Think about the massive strikes in Greece, and remember this: In bear markets, rallies, marches and protests become common events.
If The NASDAQ Leads, Will The Rest Of The Stock Market Follow?
I recently sat down to watch Tim Burton's "Alice in Wonderland," and immediately had a strange feeling of deja vu. Then it hit me: Time and again I fall down the mainstream financial "rabbit-hole" and enter a world where nonsense is the rule and reality is the ultimate intruder. Case in point: the widely held notion that a leading Nasdaq is a surefire bullish sign.
What Can Movies Tell You About the Stock Market?
Whether horror films win Academy Awards or not, they tell an interesting story about mass psychology. Research at Elliott Wave International shows that horror films proliferate during bear markets, whereas upbeat, sweet-natured Disney movies show up during bull markets.
Is Perception Reality?
The phrase "perception is reality" has been pronounced so often that some people think that to repeat it makes it true...
How Safe Is Your Bank, Really?
So far in 2010, the number of US bank failures has reached 25, a rate of two per week. This compares to 25 total bank failures for ALL of 2008, and three for 2007. Yet -- no matter how grave the data gets, few people imagine the corporate banking crisis trickling down to average Joe or Jane and their lollipop-dispensing drive-through bank tellers.
All Is Quiet On The Global Front -- For Now
The financial news these days clearly shows that the world economy is on shaky ground. You'd think that because of that, the markets would be as jittery as some of the news anchors are. But they aren't. The DJIA, the world's benchmark stock index, has rallied since early February. And the Chicago Board Options Exchange’s VIX index (the "fear" index) also shows that the markets are not nervous. What does that tell us? Let's look at some historical evidence...
EUR/USD (Forex): Like Watching Grass Grow
For six weeks now, the euro-dollar exchange rate, known to forex traders as the EUR/USD, has gone nowhere. The dollar has gained big since late November, but while we've seen some big ups and downs lately, they made almost zero net progress: Today, the rate stands near $1.3650, where it was in early February. What's next?
All Eyes On The Continuous Commodity Index
Over the last year, the commodity sector took home the gold metal (err, medal) in the financial marketplace's great race higher. This January, the flagship Continuous Commodity Index (CCI) of 17 leading meat, metals, energy, grain, and soft markets rocketed to its loftiest level in seven months. Since then, the commodity "bull run" has stalled, while commodity bullishness has soared.
Paper Trading Is NOT What Will Teach You To Trade
"Some people advocate 'paper trading' as a learning tool. Paper trading is useful for the testing of methodology, but it is of no value in learning about trading. In fact, it can be detrimental, by imbuing the novice with a false sense of security in 'knowing' that he has successfully paper traded the past six months, thus believing that the next six months with real money will be no different. Nothing could be further from the truth. Why?" Elliott Wave International's president Robert Prechter explains more in this important FREE report.
