By Elliott Wave
International
Even non-sports fans have heard
by now about the recent debacle
known as Baseballgate.
With two outs in the ninth
inning, a first-base umpire called
"SAFE" when the runner was clearly
"OUT." But this was no ordinary
missed call; it cost Detroit Tigers
pitcher Armando Galarraga a perfect
game.
And as the blogosphere flooded
with memories of other historic
slip-ups that cost "so and so" star
"this and that" honor. Demands for
the commissioner of baseball to
reverse the bad call grew louder by
the hour.
It was indeed a very bad call.
But the biggest,
baddest call
of all was not made on a sports
field. It was made in the field of
finance -- specifically on the stock
market. To wit: The mainstream
umpires of finance stood near first
base, and in April made this
emphatic call for the uptrend in
stocks:
"SAFE!!"
Call Your Own Shots -- Remove
Dangerous Mainstream Assumptions
from Your Investment Process.
Elliott Wave International's FREE,
118-page Independent Investor eBook
shows you exactly what moves markets
and what doesn't. You might be
surprised to discover it's not the
Fed or "surprise" news events.
Click here to learn more and
download your free, 118-page ebook.
In case you missed the event,
here's an instant replay:
- "Stocks Remain In A
Powerful Bull Market."
(April 10 Bloomberg)
- "Stocks Haven't Lost
Their Appeal As The Market Goes
Up, Up, And Away." (April
21 US News & World Report)
- "You can use any number
of words to describe this bull
market. Frothy is not one of
them. This market is reasonably
priced." (April 21 AP)
- "US Stocks Post Longest
Winning Streak Since 2004. The
recovery should be sustainable
and that will drive the market."
(April 24 Bloomberg)
- "All the economic
reports are pointing up...
despite lingering worries over
debt problems in Greece. Right
now, there is virtually no
evidence of a top." (April
30 USA Today)
Yet from its April 26 peak, the
DJIA turned down in a jaw-dropping
1000-plus point selloff. The market
suffered its worst May since 1940.
The markets have no commissioner
to reverse the bad call of the
financial mainstream. But at least
one team of analysts remained ahead
of the most game-changing moves in
the world's leading stock market,
including a forecast that called the
rally "OUT" in April 2010. Consider
the following insight from EWI
President Robert Prechter:
On April 16,
Prechter published his April
Elliott Wave Theorist titled
""Deadly Bearish Picture." Notice
the dates.
"We can project a
top...between April 15 and May
7, 2010. It is rare to have
technical indicators all lined
up on one side of the ledger.
They were lined up this way --
on the bullish side -- in late
February-early March of 2009.
Today, they are just as aligned,
but on the bearish side."
April 26 marks the high for the
DJIA, followed by the devastating
drop on May 7 -- exactly
within the date range Prechter's
forecast called for.
Call Your Own Shots -- Remove
Dangerous Mainstream Assumptions
from Your Investment Process.
Elliott Wave International's FREE,
118-page Independent Investor eBook
shows you exactly what moves markets
and what doesn't. You might be
surprised to discover it's not the
Fed or "surprise" news events.
Click here to learn more and
download your free, 118-page ebook
