Why Your Bank Deposits May Be at Risk

By: Elliott Wave International

Elliott Wave International's July issue of The Elliott Wave Theorist reminds us why bank depositors need to prepare for the worst before a nation's financial system is gripped by crisis:

You can't wait until a monetary system collapses to protect your wealth. Just ask the Greeks. One day they were free to access all their savings at banks, and the next day the banks' doors were closed. Depositors' only relief was a dispensation allowing depositors to withdraw up to 60 euros a day.

You may be tempted to think that such a situation is unlikely to occur in Europe's advanced economies like France, Great Britain and Germany.But another severe economic downturn could bring historic bank failures.

Why? Because the banking system never fully recovered from the 2007-2009 financial crisis.

Here's a chart of three of Europe's largest banks: Continue reading "Why Your Bank Deposits May Be at Risk"

Traders and Trendlines: A Match Made In Opportunity Heaven

By Elliott Wave International
It's the start of the winter holidays -- which, if your family is anything like mine, is also the beginning of a long tradition of deeply regrettable line-crossing, i.e.:

  • Crossing that line into interrogating "new" dinner guests as to why they are still single
  • Crossing that line into inviting your recently divorced sister-in-law to "stay as long as" she needs
  • Crossing that line into a third (no, let's be honest) fourth helping of pecan pie

In these cases, crossing "the line" is the first step down a proverbial mine field of emotional and physical discomfort. And there's no going back!

But in the world of technical analysis of financial markets, crossing one kind of line is often the first step to identifying a high-confidence trade set-up. The line I'm talking about is the trendline. Continue reading "Traders and Trendlines: A Match Made In Opportunity Heaven"

Using Elliott Waves: As Simple As A-B-C

By: Elliott Wave International

When Ralph Nelson Elliott discovered the Wave Principle nearly 70 years ago, he explained how social (or crowd) behavior trends and reverses in recognizable patterns. You can learn to identify these patterns as they unfold in the financial markets, and use them to help anticipate where prices will go next. Elliott Wave International has developed a free comprehensive online course -- The Elliott Wave Tutorial: 10 Lessons on the Wave Principle -- which describes these patterns and explains how they relate to one another.

To use the Wave Principle as you analyze the markets, you need a basic understanding of the Elliott method -- the rules and guidelines, the literal shape of individual waves, even when the larger trend may turn.

To get you started, we've included an excerpt from the free Elliott Wave Tutorial, adapted from Elliott Wave Principle by Frost and Prechter, and a short video clip from the live presentation, Tips from a Pro.

Here is your quick lesson excerpted from The Elliott Wave Tutorial: Continue reading "Using Elliott Waves: As Simple As A-B-C"

Japanese Bonds: Yield of Dreams?

By Elliott Wave International

Saber-tooth tiger. Woolly mammoth. Japanese government issued bonds?

Well it's happened. After years of enduring an unrelenting bear market (marked by plunging yields and rising prices) -- the long-battered Japanese government bond has made it on to the endangered financial species list.

Asks one October 26 Reuters: "JGB's on the edge of extinction?"

The prognosis isn't looking good. In late October, the yield on the 10-year JGB plunged below .300% for the first time in six months. While everyone from Japanese retailers to foreign investors continue to abandon the JGB for other higher-yielding assets.

Which begs the question, why is Japan's bond market facing annihilation? Continue reading "Japanese Bonds: Yield of Dreams?"

The Bear Market Meter Is Running

By: Elliott Wave International

As a native New Yorker, I can say with complete confidence: It's true; there's no place on earth like The Big Apple. It's also true that, until recently, most New Yorkers would trip a nun if it meant hailing a Yellow cab first.

Fact is, the NYC Yellow cab used to be the hottest commodity in the five boroughs. When you needed a ride, spotting a cab with its service light on was like finding the last pair of Manolo Blahnik shoes in your size at a Manhattan Sample Sale.

But those days are over in NYC (and nearly every major U.S. metropolis). In the past year alone, street hail vehicles have suffered a series of crippling blows -- including plummeting demand, fleet changes, sliding medallion values, and the "Taxi King" himself -- Gene Freidman -- filing for bankruptcy.

Today Friedman is on the hook for millions of dollars he borrowed to purchase hundreds of taxi medallions. (At one point, he "owned" more than 1000!) Writes an October 26 article in The Federalist: Continue reading "The Bear Market Meter Is Running"