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What One Big Bear Has Been Waiting For …

  • Written by Syndicated Publisher No Comments Comments
    April 17, 2014

    Most investors are complacent — they do not want to hear what bears have to say.

    Not You!

    You know the value of seeing both sides of the big picture. And maybe you are already wondering how much higher this rally can climb.

    Today we have an eye-opening report for you from Elliott Wave International.

    U.S. stocks have been bouncing off of their mid-April fall into negative territory for the year.

    No major move goes uncorrected; snapback rebounds are typical after such violent swings.

    Numerous technical conditions, however, have aligned to extremes that have never been seen before.

    The market’s internals are sending warning signs that a major shake-up in U.S. stocks is on the horizon.

    Sentiment is pressed to one record extreme after another. Nominal valuations are exploding off of our charts. Stocks priced in any real measure of value, such as a basket of commodities, gold or the U.S. Personal Consumption Expenditures Index (the Federal Reserve’s preferred method of measuring inflation) — ALL show sweeping declines since 1999, revealing a hidden yet very real and ongoing bear market in terms of purchasing power.

    Dow shares priced in gold are down a whopping 70%!

    Cracks are wider than ever in the mood behind the markets. What’s more, U.S. stocks just sent an eye-opening signal that something has shifted, and nominal values (not adjusted for inflation) may soon play catch-up to real values (what you can actually buy with your Dow shares) — as they always have throughout history.

    Elliott Wave Financial Forecast Editor Steve Hochberg wrote in a special BULLETIN on April 10 about an important early-warning signal he has been waiting for.

    We anticipated that the next wave down would be accompanied by even stronger selling intensity, and today’s decline fits this view. The NYSE advance/decline ratio was negative by a 3.5-to-1 margin, which is the strongest downside breadth of the nascent sell-off. NYSE down volume was 88.2% of total volume. The S&P’s wave ii (circle) high occurred at 1872.53, the Dow’s at 16,456.10 and the NASDAQ’s countertrend rally ended at 4185.10. … Today’s decline was coordinated, with the three main stock indexes confirming each other’s sell-off. By day’s end, all the major stock indexes are now down for year.

    Short Term Update BULLETIN, April 10, 2014

    It remains to be seen whether the April sell-off proves to be what Hochberg has been waiting for, in terms of his big-picture outlook, but now is an excellent time to get up to speed — just in case.

    Because IF this is indeed what he’s been waiting for, you WILL want to be along for the ride — not left behind.

    Much of EWI’s research shows FAR greater extremes than April’s sell-off. It’s some of the most refreshing, myth-busting — and sometimes downright scary — market analysis you will read anywhere.

    Now that it’s spring, and the bears have awoken and are stirring in the markets, it’s a great time to check in on EWI’s somewhat unconventional view.

    You can now read EWI’s annual State of the U.S. Markets Report, an in-depth, 24-page overview of EWI’s long-term outlook on U.S. stocks, the economy, bonds, gold, silver and more. It is free to download, print and read at your leisure.

    But you must act now to get your copy of this timely report — before it is too late to avoid the dangerous risks and to catch and ride the lucrative opportunities EWI sees on the horizon.

    This is an extraordinary time to be an investor. The risks are great, but if you know what you’re doing, the opportunities can be greater.

    When trends change, opportunity happens fast. You have to be ready. EWI’s report will help.

    P.S. The report also includes special sections on personal income, employment, consumer spending and strategies for staying safe.  If you want to read more about the report first, click here.

    About the Publisher, Elliott Wave International
    Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world’s largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.

    Images: via Flickr (licence attribution)


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