Riding Down the Moody Dow

Cramming for the Downside

by Greg Moses / October 2nd, 2009 (1)

The modern-day Pythagoras of market forecasting Robert Prechter has been predicting a crash of historic proportions, but that’s not the most interesting thing. More interesting is why he sees it coming.

As a theorist of the Elliot Wave, Prechter grounds his forecasts upon a mathematical pattern that tracks impulses of social mood. Everything else is symptomatic.

The background theory of the Elliott Wave is different from the kind of thinking that expects a straight-line series of effects from causes. Instead, the Elliott Wave returns us to pre-modern intuitions of cycles. It must have been clear to …
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http://dissidentvoice.org/2009/10/riding-down-the-moody-dow/

Forget about wave theories. How about the termination of the American buying spree? No jobs, no money, no credit, no home equity. So where are we going here with corporate profits. You can only goose the bottom line so much through layoffs. Eventually, you need to increase sales.

And that is why the market will tank.

Fundamentals, not wave theory.