The Fed's Gift of Free Money: Return to Sender

By Elliott Wave International

On June 2, the postman rang once -- and, boy, did he ring.

That day, the Wall Street Journal published a strongly worded letter titled, "Grand Central: A Letter to Stingy American Consumers," which included these notable passages:

"Dear American Consumer,

"This is the Wall Street Journal. We're writing to ask if something is bothering you. The sun shined in April and you didn't spend much money. The Commerce Department here in Washington says your spending didn't increase at all, adjusted for inflation last month, compared to March.

"You've been saving more too. You socked away 5.6% of your income in April after taxes, even more than in March. This saving is not like you. What's up?

"Fed officials want to start raising the cost of your borrowing because they worry they've been giving you a free ride for too long with zero interest rates. We listen to Fed officials all of the time here at The Wall Street Journal, and they just can't figure you out."

Well, on behalf of the "stingy American consumer," we'd like to answer this letter to best of our ability. Continue reading "The Fed's Gift of Free Money: Return to Sender"

Asian Markets Are Flashing Strong "Buy" Signals

By Elliott Wave International

In this informative new interview, Elliott Wave International's Asian-Pacific Financial Forecast editor, Mark Galasiewski, tells you about three new investment opportunities in the region.

Enjoy Mark's insights!


Market Outlook: CHINA

EWI Asian-Pacific markets editor Mark Galasiewski always finds compelling indicators to support his forecasts -- indicators that few others see. This past December he highlighted a little-followed sector index to help support his outlook for Chinese stocks. You can read his analysis in Elliott Wave International's new free report.

Download your free report now ยป

This article was syndicated by Elliott Wave International and was originally published under the headline (Interview) Asian Markets Are Flashing Strong "Buy" Signals. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

3 Ways to Identify Support and Resistance - 5 Chart Examples

By: Elliott Wave International

Today's lesson considers three ways to identify price support and resistance in the markets you trade.

  1. Previous highs and lows
  2. Trendline support
  3. Fibonacci Ratios

These examples are adapted from Jeffrey Kennedy's Trader's Classroom service.

1) Uptrends terminate at resistance while downtrends terminate at support. Previous highs and lows often act as resistance and support.

In ALCOA Inc (AA), the September 2012 selloff found support near the previous July 2012 low.

The February 2013 peak occurred following a test of resistance at the January peak at $9.33. Continue reading "3 Ways to Identify Support and Resistance - 5 Chart Examples"

The Currency War Has Expanded to New Fronts

By: Elliott Wave International

Editor's note: This article was adapted, with permission, from the February issue of The Elliott Wave Financial Forecast, a publication of Elliott Wave International. All data is as of Jan. 30, 2015. Click here to read the complete version of the article, including specific near-term forecasts, for free.

The "Currency War" we discussed in our October issue of The Elliott Wave Financial Forecast and again in the January issue has expanded to new fronts, as world central banks fought to remain economically competitive by trying to push down the value of their currencies.

Singapore became at least the ninth nation to "jump on the easing bandwagon" in January, employing loose monetary measures designed to reduce the value of the Singapore dollar.

Our long term bullish forecast for the U.S. dollar remains on track, and this month the Dollar Index jumped to 95.527, retracing 50% of its decline from 121.020 in July 2011 to 70.700 in March 2008. Continue reading "The Currency War Has Expanded to New Fronts"

How to Tame the Volatile Financial Markets

No matter how volatile the market, a FREE report shows you five ways the Elliott Wave Principle can improve your trading

By Elliott Wave International

Up, down, up, down; 200 points higher, 300 points lower; rinse and repeat!

It isn't easy being an investor in the U.S stock market these days. Honestly, it feels more like being in a clinical trial for mood stabilizers. Or, as the market oracle himself Warren Buffett described it in December 2014:

"Mr. Market is kind of a drunken psycho. Some days he gets very enthused. Some days he gets very depressed. And when he gets really enthused... you sell to him, and if he gets depressed, you buy from him. There's no moral taint attached to that."

Moral taint, no. But, there is a pretty significant learning curve attached to that. To wit: You have to know in quantitative terms what "really enthused" or "depressed" looks like on a price chart -- before the mood swing. As in tangible, objective criteria that signals Continue reading "How to Tame the Volatile Financial Markets"