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.
Comments 4
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??
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!
SpeepEZ,
If your fund holding has triggered the sell stop, it should be sold regardless of the position of the international TTI. I'll again elaborate more on that next week.
Ulli…
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