The Market is Forming Its "Biggest Head and Shoulders Top Ever": Prechter (with Snarky Jew head )

[CrackSmokeRepublican]

Yep... keep this one always in mind... when it the sell-off starts... it will be a mass liquidation... even if you think Precther is full of crap.
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The Market is Forming Its "Biggest Head and Shoulders Top Ever": Prechter


In October 2011, Robert Prechter made a presentation at the New Orleans Investment Conference titled, "Five Years of Financial Turmoil." The first chart he showed is below:
 
 
 
And here's an excerpt of Prechter's comments about the chart:
 
"This shows the Dow Industrial Average going back to 1980. It has formed the biggest head and shoulders top that I think has ever existed in any stock market...we're now heading downward from this formation."
 
Since 2000, the stock market has been in a topping process. Eleven years may seem like a long time for a market to "top," but consider how long the 1980s / '90s bull market was. It takes time for that market optimism to dissipate.
 
What is leading us to believe that the topping process is nearing the end of its rope? The main indicator is the Elliott wave structure of the stock market. You see, Elliott waves themselves are a reflection of the mass psychology of the market.
 
We also examine stock market cycles. Prechter also showed two compelling charts of stock market cycles in his "Five Years of Financial Turmoil" presentation. One of them shows that the three biggest stock market lows of the past 100 years appear to be part of one major stock market cycle. The other chart shows a more frequently appearing supporting cycle. In other words, both cycles are in agreement as to when the next stock market bottom will be.
 
We suggest you take a look at these charts. Plus, find out when we believe the downturn will begin in earnest.
 
You can discover Prechter's forecast in our flagship Financial Forecast Service, which is yours risk-free for 30 days.
 
Plus, you get instant access to our Subscriber Extras, including Prechter's "Five Years of Financial Turmoil" presentation.

http://www.elliottwave.com/freeupdates/ ... chter.aspx

[Timothy_Fitzpatrick]

Good time to buy gold right now. And silver for that matter.

[abduLMaria]

Good time to buy gold right now. And silver for that matter.

the Dow Gold ratio is doing pretty good (for gold).

in 2000, gold was around $300.  what did the Dow hit, 12,000 ?  a ratio of ABOUT 1:40.

Now ... gold @ 1600, Dow @ 12000 ... ratio is about 8.