Sid Smith's Money Funnies

ELLIOTT WAVE THEORY

About R.N. Elliott and his work and how Robert Prechter has dedicated his life to carrying the info...

Robert R. Prechter, Jr., is President of Elliott Wave International, which publishes analysis of global stock, bond, currency, metals and energy markets. Mr. Prechter has won numerous awards for market timing, including the United States trading championship, and in 1989 was awarded the "Guru of the Decade" title by Financial News Network (now CNBC).

Ralph Nelson Elliott was of that rarest of breeds, a true scholar in the practical world of finance. Financial analyist Hamilton Bolton accurately described the enormity of Elliott's feat when he said, "He developed his principle into a rational method of stock market analysis on a scale never before attempted." Brilliant and persistent, Elliott reached his ultimate achievement late in life by a circuitious route that included fortune in the disguise of disaster.

On Wednesday March 13, 1935, just after the close of trading with the Dow Jones average finishing near the lows for the day, Elliott sent a telegram to Collins and flatly stated the following: "NOTWITHSTANDING BEARISH (DOW) IMPLICATIONS ALL AVERAGES ARE MAKING FINAL BOTTOM."
(It was of course correct.)

By the early 1940s, Elliott had fully developed his concept that the ebb and flow of human emotions and activities follow a natural progression governed by laws of nature. He tied the patterns of collective human behavior to the Fibonacci or "golden" ratio, a mathmatical phenonmenon known for millennia by mathematicians, scientists, artists, architects and philosophers as one of Natures ubiquitous laws of form and progress.

He eventually published several books on The Elliott Wave principle including Natures's Law -- the Secret of the Universe.

The Elliott Wave Theory discovered that "Human beings never change. It has, and has always been, crowd psychology as it waxes and wanes in countable wave patterns that determine markets."

SALUTE TO ELLIOTT WAVE

We drink a toast to Robert Nelson Elliott
And Fibonocci, too -- their paths have crossed.
First, early days and Collins’ stint with Elliott,
Then: Bolton/Tremblay, Elliott and Frost.

Elliott found the way to see Direction.
Count five waves, up, or down, and that’s a trend.
All else, he said, is only a correction,
And must be judged to be so, in the end.

Now Elliott Wavers, everywhere, are waving;
As Robert Prechter bears the torch for R.N.E.
We toast once more to Elliott and to Prechter
It’s thanks to them we own the Golden Key.

Sid Smith Productions, Inc.
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Phone: 323-823-4585
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Quotes by Robert Prechter:

	The FED is impotent -- its cuts never help Chart ais available"
	"Rate cut fever"
	“Markets shrug off the Fed’s efforts to stop the drop”
	“This is as good as it gets -- it’s going to be downhill from here”
	“The Fed has driven the Stock market bears into hibernation”
	“Greenspan’s favorite talking mode is FED speak that is “purposeful obfucation instead of a ‘no comment’ answer”
	“The EW theory discovered that ‘Human beings never change. It has, and has always been, crowd psychology as it waxes and wanes in countable wave patterns that determine markets”

Over the year there have been theories of how to predict the market’s direction and timing,

	Dow Theory		Fundamental		Presidential Terms
	Seasonality		Charting Patterns		Elliot Wave Theory

In my opinion, Elliott Wave theory is the best of the survivors. Based on human emotion and mass psychology, it focuses on the waves of: complacency, risk aversion, greed, hope, and fear. Elliott, (and now Prechter) believe all of these waves are countable and reoccur throughout history.

Click here to go to the Elliott Wave Website
www.elliottwave.com

	"Read Moneyfunnies and sleep well when the market sizzles or fizzles !"