The maiden monetary policy report by Chairwoman Janet Yellen is neither hawkish nor dovish. This was somewhat expected despite hyped-up market expectations. Along with former Chairman Bernanke, Chairwoman was one of the prime architects of the current policy so it should not have been surprising that her prepared remarks were quiet unexciting given that nothing…
We have hand-picked for you seven of the best trade set-ups of 2013 that are bound to be repeated in 2014. Here is one of seven. The best thing about Elliott wave patterns? Easy: They repeat. They repeat on all timeframes, across dozens of markets, all over the world. Once you know what to look…
Late last year, the US market bottomed on November 16, 2012. Since then it has been powering higher defying all odds. During this time – 196 calendar days or 134 trading days – the index has not had a significant pullback. Before last week’s decline, it had only three shallow pullbacks averaging -3.43% and lasting…
Last week started a volatile period for Nikkei 225. As we noted on May 24th, there are two opposing forces acting on the Japanese economy. One is Abenomics and the other is formed by a combination of fundamental reasons, namely –1) Weak closing of S&P 500 following confusing testimony of Chairman Bernanke; 2) Volatility in…
US stock market has run through many resistance levels created over the last decade and is at a very high level. Most of the broad market indices are either at all time high or much higher than the pre-financial-crisis level achieved in 2007-2008. Dow Jones Industrial Averages, S&P 5oo are at all-time highs. So are…
After making a new high since December 2007, Nikkei 225 dropped -1,143 point or -7.3% on Thursday. Friday turned out to be no better with a yo-yo move. Though Nikkei gained +128 points, it was far lower than the 500 point gain that the index had intraday. In two days, the index dropped -6.4% and…
By reaching a low of 78.915 in the last week of January 2013, the Dollar index made a double bottom – it made the first bottom of 78.725 in early September. The index completed the pattern in late February 2013, by breaking above the intermediate high of 81.515 between the two bottoms made in the…
The U.S. Dollar index is a geometrically average of six currencies weighted against the U.S. dollar. It was created by the Federal Reserve in 1973. The index contains six currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. The euro replaced now-defunct five European currencies – the Deutsch Mark, the…
EWI senior analyst Jeffrey Kennedy shows you how to identify quality trade setups with supporting technical indicators. “I always will be an Elliottician, but other technical tools have merit and are indeed worthwhile: they allow me to build a case, build a more confident reason for making a forecast and for taking a trade; making…
The one simple insight that will change the way you invest forever Some of the greatest problem solvers in history — Albert Einstein, for example — know that the secret to solving complex problems requires simplicity. Einstein’s simple equation (E = mc²) revolutionized math and science because it offered a single simple solution to so…
Slow and safe wins the race Financial historians will eventually describe the past 30 years as a time when investors embraced epic levels of financial risk. Stock mutual funds are now so popular that they outnumber stocks. Bond, real estate and other types of mutual funds also exploded in number. Many financial instruments — such…
A key economic index turns south The federal government defines the Producer Price Index (PPI) as “the average change over time in the selling prices received by domestic producers for their output.” With help from the Federal Reserve’s massive inflationary policies, the PPI has climbed even as the economy began to fall in 2008-09. All…
Senior Analyst Jeffrey Kennedy shows you how these volatility indicators support pattern recognition As a technical trader, are you able to view financial market fluctuations clearly and reliably? At Elliott Wave International, we hold that the Elliott Wave Principle is the most effective tool for analysis. Yet the Wave Principle works well with other technical…
The Reserve Bank of India (RBI) and the Indian Ministry of Finance seem to be at loggerhead. The government is concerned with the slowing growth and is trying to implement growth policies and dropping strong hints to RBI to provide some help. In its mid-year economic analysis presented in Parliament on Monday, the finance ministry said it…
That would be, drumroll please, Chicago Fed President Charles Evans, again. This is via MarketWatch: In a speech to the C.D. Howe Institute, an independent not-for-profit economic research firm based in Toronto, Evans said policy makers should vow low rates until unemployment falls below 6.5%, as long as inflation is not forecast to rise above…