When an Over-Ripe Market is Ready to Spoil

Reliable internal measures tell a story investors need to know
Anyone who enjoys eating fruit knows there’s a fine line between ripe and over-ripe. If it sits in the fruit bowl too long, over-ripe turns rotten. As experienced investors know, the stock market goes through similar phases. An overbought, or over-ripe, market can spoil quickly.

Take a look at this chart for example (wave labels removed), and ask yourself, is the stock market on the verge of spoiling?

U.S. Economy: The Financial Tectonic Plates Are Shifting Once Again

Financial changes can happen with lightning speed History books call the period after the War of 1812 “The Era of Good Feelings.” America was a young nation that had a sense of purpose. National political strife was at a minimum; optimism was in the air. Major advances in technology and engineering brought the country turnpikes…

Basic Elliott Video Lesson — Characteristics of Zigzags

For consistent trading, use Elliott as your metronome. When you are new to trading with Elliott Waves, it can take some time before each pattern is easy to recognize and understand. But as with new music, the more you listen the more the particular rhythm and meaning stand out. There may be as many approaches…

The Personality of Stock Market Waves

Elliott waves don’t merely reflect prices plotted over time. Each wave has its own “personality.” Listen to this video by EWI’s Wayne Gorman to learn more about the psychology behind the waves and how it affects your investment decisions.

Learn How to Apply Fibonacci Retracements to Your Trading

EWI’s new eBook helps you identify trading opportunities Elliott waves often correct in terms of Fibonacci ratios. The following article, adapted from the eBook How You Can Use Fibonacci to Improve Your Trading, explains what you can expect when a market begins a corrective phase. Learn how you can read the entire 14-page eBook below.…

14 Elliott Wave Trading Insights You Can Use Now

Triangles offer an important piece of forecasting information There’s no shortage of books about trading these days, and you could read for months before you come across one that might apply to your trading style. The free 45-page eBook The Best of Trader’s Classroom is specifically for Elliott wave traders and saves you time in…

10 Things You Should and Should Not Do During Deflation

This article is part of a syndicated series about deflation from market analyst Robert Prechter, the world’s foremost expert on and proponent of the deflationary scenario. For more on deflation and how you can survive it, download Prechter’s FREE 60-page Deflation Survival eBook, part of Prechter’s NEW Deflation Survival Guide. The following article was adapted…

Learn Elliott Wave Analysis

Understand the basics of the subject matter, break it down to its smallest parts — and you’ve laid a good foundation for proper application of… well, anything, really. That’s what we had in mind when we put together our free 10-lesson online Basic Elliott Wave Tutorial, based largely on Robert Prechter’s classic “Elliott Wave Principle…