Market Top?

Ulli Uncategorized 4 Comments

Bob Prechter appeared on CNBC a few days ago and discussed seeing a market top similar to the one in 2007. Take a look at the video:

While I believe that the Elliott Wave Theory has merit, it is not a very good timing indicator. Some of Bob’s previous forecasts based on his E-wave analysis have been correct, but were made way early. Given what has happened in the market in 2008, an early exit certainly was better than a late one or none at all.

With the S&P; now having retraced recent gains back to the November level, a trend reversal is a distinct possibility. So far, only sell stops in Asian, Chinese and international ETFs/mutual funds have been triggered, but many more will follow if the markets give back another 2%.

Don’t make any emotional decisions; simply let the market tell you when it’s time to get out.

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Comments 4

  1. International mutual funds and ETFs have triggered a sell stop. (posted Saturday) However, the international index is still +2.97% above its long-term trend line. (posted Friday) So is there a sell signal or not??

  2. Has there been a sell stop triggered for international mutual funds? I see in your Friday blog that the international index trend line is still +2.97%. Would appreciate the clarification. Thanks!

  3. Just some quick calculations on domestic major indexes, based on 52 week highs: DJ -6.5%, Trannys -9.5%, Utilities -7.8%, Nasdaq -7.8%, NYSE -7.9%, SP500 -6.6%, WLSH5000 -6.5, Russ2000 -7.2. Manipulating how one calculates down percentage, could push all these figures, maybe another 1/2% deeper. Sell anyone?? Mo

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