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Investors Hated Gold at Precisely the Wrong Time: What About Now?
a report from Elliott Wave International

From Sannleikur Komist The video below illustrates the contrarian nature of Elliott waves when they reflect the peaks or valleys of overly loved or hated assets. Over the years, Elliott Wave International    Continue reading »

As early as 2011, EWI’s analysis warned that Europe’s deflation was coming –
the latest report from Elliott Wave International

By Elliott Wave International What’s Scarier Than DE-flation?  For the economies of Europe, the past few months have felt like one long ice-bucket challenge that never ends: A perpetual state of shock induced    Continue reading »

Largest steel mill in China bankrupts – capital shortage blamed

As we constantly allude, deflationary pressures create a lack of capital as economies slow causing companies to borrow excessively to stay afloat. Debt is the biggest killer of companies during a depression    Continue reading »

World leaders are just beginning to acknowledge that the global economy is in serious trouble

The global economy has been in serious trouble for a decade or more. All the talk of “green shoots” and “improving economic conditions” has been just rhetoric, in some cases outright lies.    Continue reading »

Deflationary pressure in Australia shuts down biggest coal company for three weeks

One of the characteristics of a deflationary economy is loss of production due to decreased demand. Initially, production losses result in wage reductions and/or reductions in the number of hours worked. Eventually,    Continue reading »

Do you support or oppose the idea of your state peacefully withdrawing from the United States of America and the federal government?    Continue reading »

Deflation Rearing its Ugly Head in Subtle and Not-So-Subtle Ways Around the Globe

By Steve Hochberg and Pete Kendall, Elliott Wave International Robert Prechter of Elliott Wave International has long held that deflation, not inflation, would first ravage the global economy causing massive debt destruction    Continue reading »

Recognizing changing social mood is key to understanding why the herd is causing the stock market to fall

EDITORIAL You have often heard me say that it is “endogenous social mood”, i.e., the subconscious mood of the collective herd that moves markets. It’s not news or current events as so    Continue reading »

Anatomy of a bubble – How the Federal Reserve and the U.S. Congress have created a debt crisis of historic proportion

To understand where the stock market is going we first need to understand from where it has come. Let’s start by comparing the currently in vogue macro economic philosophy, Keynesianism, to a    Continue reading »

Inflation vs. Deflation – Part 1
Which one is controlling the fate of America and will it cause the next Great Depression?

By Sannleikur Komist Question: “Most people who believe that we will slip into a depression seem to think it will be caused by inflation brought on by the collapsing of the dollar. Why    Continue reading »

Dow Jones Industrial Average
Baseline Elliott Wave Count from 1964 to 2014

With every great inflation comes an inevitable deflationary correction, economic yin and yang. Elliott Wave Theory is telling us that the point of deflationary reversal has arrived or will very soon. In    Continue reading »

The Creature from Jekyll Island
The End of the Federal Reserve System – Part 1

By Sannleikur Komist Editor I’m going to tell you a story – a story of corruption, deceit, greed and political intrigue. As it turns out, a true story, one stranger than fiction    Continue reading »

 

10 YR U.S. Treasury Index (yield)
Elliott wave update for week ending 11/21/2014

10 YR Treasury yield

Click here to see wave degree labeling key (popups required) -- Click on chart for larger image.
By Sannleikur Komist

The 10 YR U.S. Treasury yield is completing Minute degree wave [b] and should begin to decline into its final corrective wave [c] at any moment. Some time before the end of the year it should start up into Minor wave 3 of Intermediate wave (3) - a third-of-a-third.

Investors Hated Gold at Precisely the Wrong Time: What About Now?
a report from Elliott Wave International

EWI gold report

From Sannleikur Komist

The video below illustrates the contrarian nature of Elliott waves when they reflect the peaks or valleys of overly loved or hated assets. Over the years, Elliott Wave International has accurately called the fluctuations in gold prices, most recently the 2011 top. Today, EWI is calling for a gold rally, just when everyone else is writing it off.

Dow Jones Industrial Average
Elliott Wave update for week ending 11/21/2014

Dow Jones industrial Average

Click here to see wave degree labeling key (popups required) -- Click on chart for larger image.
By Sannleikur Komist

The Dow Jones Industrial Average made a new high this week confirming the alternate count from last week. Determining where the peaks of the final stock market indexes (the Dow, the S&P 500 and the Nasdaq) will begin to turn down is proving to be a challenging task.

As early as 2011, EWI’s analysis warned that Europe’s deflation was coming –
the latest report from Elliott Wave International

shrinking euro

By Elliott Wave International

What’s Scarier Than DE-flation?  For the economies of Europe, the past few months have felt like one long ice-bucket challenge that never ends: A perpetual state of shock induced by the bone-chilling fact that deflation

“…has become a reality in many European countries.” (Oct. 24, New York Times)

Largest steel mill in China bankrupts – capital shortage blamed

China steel pollution

Dateline: Wenxi, Shanxi, China, 11/17,2014
Media Outlet: Bloomberg News
Article Headline: Haixin Enters Bankruptcy Proceedings Amid Steel Industry Woes
Map View:

As we constantly allude, deflationary pressures create a lack of capital as economies slow causing companies to borrow excessively to stay afloat. Debt is the biggest killer of companies during a depression as dwindling sales and the eventual inability to borrow to meet payrolls drags companies into bankruptcy. This is precisely what has happened to China’s biggest steel company, Haixin Iron and Steel Group.

Evidence of Another Even More Sweeping Housing Bust is Already Starting to Appear

NY Billionaires Row

By Elliott Wave International

Editor’s note: With permission, the following article was adapted from the October 2014 issue of The Elliott Wave Financial Forecast, a publication of Elliott Wave International, the world’s largest market forecasting firm. 

You may review an extended version of the article for free here.

In February, The Elliott Wave Financial Forecast discussed the great boom in New York City’s residential real estate and its keen resemblance to what happened in 1929, when the demand for luxury housing also spiked to previously unseen heights.

World leaders are just beginning to acknowledge that the global economy is in serious trouble

David Cameron

Dateline: Brisbane, Australia, 11/17/2014
Media Outlet: The Guardian
Article Headline: David Cameron: Red lights flashing on the global economy
Map View:

The global economy has been in serious trouble for a decade or more. All the talk of “green shoots” and “improving economic conditions” has been just rhetoric, in some cases outright lies. While it was possible for a long time for world leaders to deny the inevitable, it is no longer. David Cameron is the first major world leader to sound the alarm bell. He won’t be the last.

S&P 500 Index
Elliott Wave update for week ending 11/14/2014

S&P 500 Index

Click here to see wave degree labeling key (popups required) -- Click on chart for larger image.
By Sannleikur Komist

Like the Dow, the S&P 500  is hovering around the area where Intermediate wave (5) equals .618 times wave (1). It appears exhausted and ready to roll over. 

Dow Jones Industrial Average
Elliott Wave update for week ending 11/14/2014

Dow Jones Industrial Average

Click here to see wave degree labeling key (popups required) -- Click on chart for larger image.
By Sannleikur Komist

The Dow Jones Industrial Average stalled out this week. It moved sideways in a very narrow range all week. Next week should not be so sluggish.

Deflationary pressure in Australia shuts down biggest coal company for three weeks

Glencore

Dateline: Sydney, Australia, 11/14/2014
Media Outlet: Sydney Morning Herald
Article Headline: Glencore shuts down coal mines for three weeks
Map View:

One of the characteristics of a deflationary economy is loss of production due to decreased demand. Initially, production losses result in wage reductions and/or reductions in the number of hours worked. Eventually, workers are laid off . Glencore, Australia’s biggest coal exporter, announced on Friday that it will shutdown its 13 mining operations for three weeks. That has never happened before in the Australian market.

Why do 25% of Americans support their state’s secession from the U.S.

Secede from gangster govt

Dateline: United States, 9/19/2014
Media Outlet: Reuters
Article Headline: One in four Americans want their state to secede from the U.S., but why?
Map View:

Do you support or oppose the idea of your state peacefully withdrawing from the United States of America and the federal government?

Deflation Rearing its Ugly Head in Subtle and Not-So-Subtle Ways Around the Globe

draghi what ever it takes

By Steve Hochberg and Pete Kendall, Elliott Wave International

Robert Prechter of Elliott Wave International has long held that deflation, not inflation, would first ravage the global economy causing massive debt destruction and creating political, economic and social unrest. Current events bear out his long term picture… and so does global economic data.

Don’t Get Ruined by These 10 Popular Investment Myths (Part VII)
an educational series from Elliott Wave International

myth vs reality

Interest rates, oil prices, earnings, GDP, wars, peace, terrorism, inflation, monetary policy, etc. — NONE have a reliable effect on the stock market

By Elliott Wave International

You may remember that after the 2008-2009 crash, many called into question traditional economic models. Why did they fail? And more importantly, will they warn us of a new approaching doomsday, should there be one?

Myth #7: “Peace is bullish for stocks.”

Jobless claims up this week – despite retailer’s upbeat outlook for seasonal holiday staffing

unemployment line

Dateline: Wshington, DC, 11/13/2014
Media Outlet: Bloomberg News
Article Headline: Jobless Claims in U.S. Rose More Than Forecast Last Week
Map View:

Jobless claims increased by 12,000 to 290,000 in the week ending 11/8/2014, according to the Labor Department. Still, government analysts claim the economy is doing well. Of course, if you tell that to a recent college grad who can’t find a job in their field, you may get a different opinion. 

The pundits are shunning Gold like the plague, "…gold is headed straight down" says one analyst

WSJ on Gold

Dateline: New York, New York, 11/12/2014
Media Outlet: Yahoo! Finance
Article Headline: Gold is doing something it hasn't done in 17 years
Map View:

Gold analysts are lockstep agreed that it is headed into the cellar. It’s always interesting to watch the media pundits and analysts although it’s not a good idea to listen to their opinions when they are all in agreement. As Robert Prechter says,

“Extreme opinions, shared widely, constitute the single most reliable indicator of an impending change of direction of a market.”

Guess what? They are all in agreement.