Learn more about Prechter’s 12-page issue – it’s yours for free.

Dear Investor,

The facts are hard to reconcile:

Home values right now are falling in regions where they had been stable for three years… but, the Dow Industrials recently climbed above 12,000 for the first time since mid-2008.

Unemployment is far too high and growth is nonexistent… but, the Federal Reserve will “do whatever it takes” to provide economic stimulus.

Intense political discord is rising in the U.S., even as protests sweep across entire regions of the globe… but, bullish investor sentiment has swelled to historically high levels.

These data points don’t go well together. Still, facts are facts — whether they “reconcile” or not. So, like every individual investor, you have choices to make. Obviously, what you choose depends greatly on what you believe the future holds.

It’s just that right now, the future seems murky in ways few of us have experienced. Then again, “few” is not “all”…

… Meaning, you could have an astonishing stroke of luck, whereby you cross paths with a market pro who’s been around for decades. Maybe even the sort of guy who was “keeping hourly charts by hand back in the 1970s.”

A guy like that will have just about seen it all. He could compare today’s trend with the trends of the past 30 years, because he lived (and worked) through them. Heck, he’d know even more than that, since he learned the trade when he was young from people with decades of their own experience.

You probably know where I’m going with this, so I’ll spell it out. The Elliott Wave Theorist which published in February includes more of Robert Prechter’s experience than I’ve ever read in a single issue — all 30-plus years of it.

What matters is that he uses his experience at a moment when it can do the most good, namely when investors are most vulnerable. After being “net sellers” for three years, the public is moving back into mutual funds. One simple chart in the above-mentioned Theorist reveals the perils of this trend.

So, Prechter has done a comparative analysis of today’s stock market, vs. four primary degree (long-term) examples from his own career. In this you’ll see his familiarity with market history at the deepest level — this includes some of the charts he did by hand years ago.

An experienced voice is the most important when it’s the hardest to hear — and perhaps the least welcome. This doesn’t have to be the case with you. Robert Prechter’s analysis begins and ends with facts about the market — the charts most of all.

You owe it to yourself to read this issue of The Elliott Wave Theorist.
(Don’t delay! It’s only available through March 21!)

Download your copy of Robert Prechter’s 12-page issue — it’s free.

Sincerely,

Robert Folsom, Senior Editor
With EWI since 1992

Published on behalf of Elliott Wave International by
Goran Dolenc
Stocks-For-Beginners.com

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 around the world.

We can now add the recent uprisings in North Africa and the Middle East to the category of life imitating art — specifically, music lyrics. Those who lived through the 1980s might be forgiven for hearing an unbidden snatch of music run through their heads as they watched first Hosni Mubarak and now Moammar Gadhafi try to hold onto power — “Should I Stay or Should I Go” by The Clash. In Libya, where Gadhafi has used air strikes and ground forces against the rebels, The Clash’s other huge hit from 1981, “Rock the Casbah,” describes the current situation so well it’s almost eerie:

The king called up his jet fighters
He said you better earn your pay
Drop your bombs between the minarets
Down the Casbah way

Punk rock played by bands like The Clash, X, The Ramones, and the Sex Pistols had that in-your-face, defy-authority attitude that crashed onto the scene in Great Britain and the United States in the ’70s and ’80s. It’s interesting that the lyrics can still ring true 30 years later, but even more trenchant is how the prevailing mood is reflected by the music of the times, as seen in this chart that Robert Prechter included in a talk he gave last year.

Popular culture reflects social mood, and the stock market reflects that same social mood. That’s why we get loud, angry music when people are unhappy with their situation; they want to sell stocks. We get light, poppy, bubblegum music when they feel happy and content; they want to buy stocks. In a USA Today article about music and social moods in November 2009, reporter Matt Frantz made clear the connection that Elliott Wave International has been writing about for years:

The idea linking culture to stock prices is surprisingly simple: The population essentially goes through mass mood swings that determine not only the types of music we listen to and movies we watch, but also if we want to buy or sell stocks. These emotional booms and busts are followed by corresponding swings on Wall Street.

“The same social elements driving the stock market are driving the gyrations on the dance floor,” says Matt Lampert, research fellow at the Socionomics Institute, a think tank associated with well-known market researcher Robert Prechter, who first advanced the idea in the 1980s. [USA Today, 11/17/09]

In the talk he gave to a gathering of futurists in Boston, Prechter explained how the music people listen to relates to social mood and the stock market:

When the trend is up, they tend to listen to happier stuff (see chart). Back in the 1950s and ‘60s, you had doo-wop music, rockabilly, dance music, surf music, British invasion — mostly upbeat, happy material. As the value of stocks fell from the 1960s into the early 1980s, you had psychedelic music, hard rock, heavy metal, very slow ballads in the mid-1970s, and finally punk rock in the late ’70s. There was more negative-themed music. [excerpt from Robert Prechter’s speech to the World Future Society's annual conference, 7/10/10]

Which brings us right back to punk rock. Although there’s lots of upbeat music in the air now, we can assume that after this current bear market rally, we will hear angrier music on the airwaves as the market turns down. It might be a good time, then, to pay attention to what the markets were doing the last time punk rock blasted the airwaves. Here’s an excerpt from “Popular Culture and the Stock Market,” which is the first chapter of Prechter’s Pioneering Studies in Socionomics.

The most extreme musical development of the mid-1970s was the emergence of punk rock. The lyrics of these bands’ compositions, as pointed out by Tom Landess, associate editor of The Southern Partisan, resemble T.S. Eliot’s classic poem “The Waste Land,” which was written during the ‘teens, when the last Cycle wave IV correction was in force (a time when the worldwide negative mood allowed the communists to take power in Russia). The attendant music was as anti-.musical. (i.e., non-melodic, relying on one or two chords and two or three melody notes, screaming vocals, no vocal harmony, dissonance and noise), as were Bartok’s compositions from the 1930s.

It wasn’t just that the performers of punk rock would suffer a heart attack if called upon to change chords or sing more than two notes on the musical scale, it was that they made it a point to be non-musical minimalists and to create ugliness, as artists. The early punk rockers from England and Canada conveyed an even more threatening image than did the heavy metal bands because they abandoned all the trappings of theatre and presented their message as reality, preaching violence and anarchy while brandishing swastikas.

Their names (Johnny Rotten, Sid Vicious, Nazi Dog, The Damned, The Viletones, etc.) and their song titles and lyrics (“Anarchy in the U.K.,” “Auschwitz Jerk,” “The Blitzkrieg Bop,” “You say you’ve solved all our problems? You’re the problem! You’re the problem!” and “There’s no future! no future! no future!”) were reactionary lashings out at the stultifying welfare statism of England and their doom to life on the dole, similar to the Nazis backlash answer to a situation of unrest in 1920s and 1930s Germany.

Actually, of course, it didn’t matter what conditions were attacked. The most negative mood since the 1930s (as implied by stock market action) required release, period. These bands took bad-natured sentiment to the same extreme that the pop groups of the mid-1960s had taken good-natured sentiment. The public at that time felt joy, benevolence, fearlessness and love, and they demanded it on the airwaves. The public in the late 1970s felt misery, anger, fear and hate, and they got exactly what they wanted to hear. (Luckily, the hate that punk rockers. reflected was not institutionalized, but then, this was only a Cycle wave low, not a Supercycle wave low as in 1932.)

In summary, an “I feel good and I love you” sentiment in music paralleled a bull market in stocks, while an amorphous, euphoric “Oh, wow, I feel great and I love everybody” sentiment (such as in the late ’60s) was a major sell signal for mood and therefore for stocks. Conversely, an “I’m depressed and I hate you” sentiment in music reflected a bear market, while an amorphous tortured “Aargh! I’m in agony and I hate everybody” sentiment (such as in the late ’70s) was a major buy signal.

Popular Culture and the Stock Market. Read more about musical relationships to social mood and the markets in this 40-page-plus free report from Elliott Wave International, called Popular Culture and the Stock Market. All you have to do to read it is sign up to become a member of Club EWI, no strings attached. Find out more about this free report here.

This article was syndicated by Elliott Wave International and was originally published under the headline How Punk Rock and Pop Music Relate to Social Mood and the Markets. 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.

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Filed under: post ]]> http://stocksforbeginners.wordpress.com/2011/03/09/equityfeed-puts-professional-trading-tools-into-the-hands-of-individual-investors/feed/ 0 stocksforbeginners http://stocksforbeginners.wordpress.com/2011/03/09/big-advantages-of-trading-with-the-wave-principle/ http://stocksforbeginners.wordpress.com/2011/03/09/big-advantages-of-trading-with-the-wave-principle/#comments Wed, 09 Mar 2011 07:04:28 +0000 stocksforbeginners http://stocksforbeginners.wordpress.com/2011/03/09/big-advantages-of-trading-with-the-wave-principle/ ]]> What advantages does the Wave Principle offer to traders?

Here’s one of the big advantages of using the Wave Principle
when trading: you can increase your understanding of how
current price action relates to the market’s larger
trend.

Other tools fall short in this regard. Several trend-following
indicators such as oscillators and sentiment measures have
their strong points, yet they generally fail to reveal the maturity of
a trend. Moreover, these technical approaches to trading are
not as useful in establishing price targets as
the Wave Principle.

Here’s another big advantage of using the Wave Principle in
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Indeed, this valuable free eBook shows you how to identify
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The Wave Principle also helps you to identify price levels
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Before you attempt to identify price levels for protective
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• Wave 2 can never retrace more than 100 percent of wave
  1
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• Wave 3 may never be the shortest impulse wave of waves
  1, 3, and 5 

The details and specific instructions for placing protective
and trailing stops are in the BONUS section of the free eBook, "How
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This
article was syndicated by Elliott Wave International and
was originally published under the headline Big Advantages of Trading with the Wave Principle.
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.

Filed under: post ]]> http://stocksforbeginners.wordpress.com/2011/03/09/big-advantages-of-trading-with-the-wave-principle/feed/ 0 stocksforbeginners http://stocksforbeginners.wordpress.com/2011/03/07/comparison-of-oil-etfs/ http://stocksforbeginners.wordpress.com/2011/03/07/comparison-of-oil-etfs/#comments Mon, 07 Mar 2011 14:28:12 +0000 stocksforbeginners http://stocksforbeginners.wordpress.com/?p=83 ]]> I have just posted an article about oil ETFs on the http://www.stocks-for-beginners.com site. Feel free to educated and comment.

http://www.stocks-for-beginners.com/oil-etf-funds.html

Filed under: Uncategorized ]]> http://stocksforbeginners.wordpress.com/2011/03/07/comparison-of-oil-etfs/feed/ 0 stocksforbeginners http://stocksforbeginners.wordpress.com/2011/03/03/breaking-news-bulletin-news-is-not-the-main-driver-of-stock-market-trends/ http://stocksforbeginners.wordpress.com/2011/03/03/breaking-news-bulletin-news-is-not-the-main-driver-of-stock-market-trends/#comments Thu, 03 Mar 2011 19:34:40 +0000 stocksforbeginners http://stocksforbeginners.wordpress.com/2011/03/03/breaking-news-bulletin-news-is-not-the-main-driver-of-stock-market-trends/ ]]> A FREE myth-busting report from Club EWI reveals the real force behind long-term trend in financial markets
By Elliott Wave International

Conventional economic wisdom is founded on one core concept: namely, that events that exist outside the market (part of “market fundamentals”) trigger trend changes in the financial markets. Because of this belief, you have the mainstream experts of finance watching everything from weather patterns to crop conditions, political exploits to the subtlest changes in punctuation in the Fed’s minutes — all in the hopes of anticipating the next big move in commodities, stocks, gold, the dollar, etc. In a nutshell, “positive” news and events cause a rise in prices, while “negative” news pushes prices down. Read more.

Filed under: post ]]> http://stocksforbeginners.wordpress.com/2011/03/03/breaking-news-bulletin-news-is-not-the-main-driver-of-stock-market-trends/feed/ 0 stocksforbeginners http://stocksforbeginners.wordpress.com/2011/03/03/i-have-just-posted-a-fresh-autodesk-inc/ http://stocksforbeginners.wordpress.com/2011/03/03/i-have-just-posted-a-fresh-autodesk-inc/#comments Thu, 03 Mar 2011 07:29:32 +0000 stocksforbeginners http://stocksforbeginners.wordpress.com/2011/03/03/i-have-just-posted-a-fresh-autodesk-inc/ ]]> I have just posted a fresh Autodesk Inc. (ADSK) long-term technical analysis here: http://www.stocks-for-beginners.com/adsk-stock.html

Filed under: status ]]> http://stocksforbeginners.wordpress.com/2011/03/03/i-have-just-posted-a-fresh-autodesk-inc/feed/ 0 stocksforbeginners http://stocksforbeginners.wordpress.com/2011/03/02/a-mega-day-for-gold-and-silver/ http://stocksforbeginners.wordpress.com/2011/03/02/a-mega-day-for-gold-and-silver/#comments Wed, 02 Mar 2011 16:47:51 +0000 stocksforbeginners http://stocksforbeginners.wordpress.com/2011/03/02/a-mega-day-for-gold-and-silver/ ]]> From Adam Hewison, President of INO.com, Co-founder of MarketClub

The gold and silver markets rallied dramatically to the upside as concerns and worries over oil supplies, inflation, and general nervousness in the world markets pushed both metals into new high ground.

I have just completed a new short video where I share with you my upside target zones for gold. The video only takes a few minutes to watch and emphasizes how important technical analysis is in the gold market. Our weekly Trade Triangles have been long gold from $1,368 and it looks as though that position is going to work out well.

We also refer back to a video that I made on September 20th last year, which underscores the importance of cyclic work in the gold market and, how if these same cycles hold true, can predict with a fair degree of certainty when the next cyclic high is going to occur.

I reveal all of this in this new short video that I think you’ll find both informative and educational.

http://www.ino.com/info/683/CD4476/&dp=0&l=0&campaignid=3

Filed under: post ]]> http://stocksforbeginners.wordpress.com/2011/03/02/a-mega-day-for-gold-and-silver/feed/ 0 stocksforbeginners http://stocksforbeginners.wordpress.com/2011/03/02/two-stocks-that-are-ready-to-rocket-higher/ http://stocksforbeginners.wordpress.com/2011/03/02/two-stocks-that-are-ready-to-rocket-higher/#comments Wed, 02 Mar 2011 07:28:07 +0000 stocksforbeginners http://stocksforbeginners.wordpress.com/2011/03/02/two-stocks-that-are-ready-to-rocket-higher/ ]]> These two stocks popped onto our radar screen today thanks to our Trade Triangle technology.

In this short video you will see exactly how to best use our Trade Triangles and with just a few clicks, you’ll be spotting winning trades in minutes.

Some of you may have heard of these two stocks, but the chances are that they have been flying under the radar for the other 99% of traders. The good news is that our Trade Triangle technology is programmed to spot big moves when they begin, not months later after the market has moved and you are kicking yourself for not getting in sooner.

Today’s educational video shares with you how to get the most out of the markets in the least amount of time. I hope you enjoy it.

http://www.ino.com/info/682/CD4476/&dp=0&l=0&campaignid=3

Filed under: post ]]> http://stocksforbeginners.wordpress.com/2011/03/02/two-stocks-that-are-ready-to-rocket-higher/feed/ 0 stocksforbeginners http://stocksforbeginners.wordpress.com/2011/02/28/technical-analysis-of-audjpy/ http://stocksforbeginners.wordpress.com/2011/02/28/technical-analysis-of-audjpy/#comments Mon, 28 Feb 2011 08:54:04 +0000 stocksforbeginners http://stocksforbeginners.wordpress.com/?p=71 ]]> Starting with long term chart, you can find the prior high of Australian dollar (AUD) against Japanese Jen (JPY) just before the last financial crisis broke out at the end of 2007; AUD/JPY exchange rate was around 108 at that time. The latest major low was established in February 2009, when one Australian dollar was worth only 55 Japanese Jens.

The price of AUD/JPY is currently approaching the latest high established in May 2010 around 88 levels, which is representing the 61.8% Fibonacci retracement level as well. If bulls will manage to break through this important resistance, we could expect the price to move further on up to the all time high around 108. This is the most probable scenario since we are in an uptrend and according to technical analysis study we should believe in this scenario. As always, all the risk and money management rules have to be adopted for protection.

A less likely, but not impossible scenario is that AUD will bounce back down from the resistance near 88 levels. We should be careful about the price exiting the trading channel first and then breaking the horizontal support line near 73 areas. If this happens, the uptrend will actually change in the downtrend and we could easily see a double W scenario and the price of Australian dollar moving toward the 55 level again.

Filed under: Forecasts ]]> http://stocksforbeginners.wordpress.com/2011/02/28/technical-analysis-of-audjpy/feed/ 0 stocksforbeginners