Government "Interventions" - A.K.A. Redefining Insanity

This is such a lunatic idea that I hardly know what to say about it. You may not want to buy stocks right now, I know I don't. But, if the Fed buys stocks, then whatever you and I and anybody else "wants" ceases to matter. All Americans own equities. Period. Will they have to notify all of the 110 million U.S. households about the date and location of shareholder meetings?

Euro Vs. Dollar: In a Freefall

You can't look at this week's action in the U.S. dollar without having your jaw drop. We've already commented on the greenback's stunning strength recently despite several major "fundamental" factors that should have sent it crashing. Here's just a quick list:

What Were You Reading at Dow 14,000?

Today, six years after its launch, Robert Prechter's New York Times and Amazon best-selling book, Conquer the Crash, reads like a script. Bob says, "We're about a third of the way through CTC. There are two-thirds left. There is still time for people to get ready, but not much." Here are some highlights of the story Bob foretold in Conquer the Crash.

Admit It: People Herd

On a day when the DJIA fell another 678 points to close below 8,600, it seems appropriate to talk about the herding impulse in humans. We at EWI observed decades ago that the financial markets are anything by rational. Now the mainstream media is also picking up on this fact. So why has the stock market "become a case study in the psychology of crowds"? Here's an eye-opening answer.

Dow Below 9000: The Con(fidence) Game is Up

People have lost confidence, and the markets reflect their concern. Without confidence, the financial house of cards falls down. This is exactly what Bob Prechter writes in his best-selling business book, Conquer the Crash.

Cotton: Futures Forerunner

The votes are in. The ballots are tallied. And the official frontrunner has been declared. (And no, we’re not talking about the 2008 Presidential Election) We’re talking about the current race to determine which market -- out of all the major commodity candidates out there -- is the greatest contender for near-term opportunity. And the winner is: Cotton

European Stocks: The Dance Of The Fearful

Bear markets can destroy very quickly what took years to build. They are fast because they are driven by fear, and fear is stronger than greed, the bull market catalyst. This is what Tom Denham, Elliott Wave International Senior European Equity Analyst, says about this cycle in the opening paragraph of his current, October European Financial Forecast...

Oil Prices Plunge: What “Safe-Haven”?

According to mainstream financial wisdom, when the plane of the U.S. economy runs out of fuel and starts hurtling toward the earth’s surface, one of the few markets said to provide a parachute of safety is … Oil. Problem is, over the last four months, said parachute has failed to open. 

The $700 Billion Dollar Question

Global deflation means global recession. Still, come to think of it, as bad as it may get in the U.S., our financial, service and industrial diversifications would probably make the U.S. dollar and equities a good bet, on a relative strength basis.

Russian Stocks: From Boom To Bust

In the last month, Russia (a.k.a. “the Lungs of Europe”) has come down with an acute case of financial pneumonia. Every effort to clear the airways -- from NINE shut downs of the Russian Trading System Index (RTSI) to $150 billion in cash infusions -- has been for not. Moscow’s main bourse continues to choke, culminating in the code blue event of “Black Monday” (October 6)...

U.S. Dollar: The REAL Bear Market Maverick

Despite all "fundamental" odds, since mid-July, the U.S. dollar has been gaining strength. The euro vs. dollar exchange rate, known in forex trading world as the EURUSD, has fallen from near $1.60 mid-summer to below $1.35 on October 6. This chart illustrates this incredible 25-cent gain by the greenback...

Have You Reached the "Point of Recognition"?

With the Dow dropping more than 800 points over two days, people are reaching the "point of recognition" when they can see that the stock market is moving strongly in one direction.