Prechter: My Charts Say DOW May Plummet To 2,000

Discussion in 'Wall St. News' started by Free Thinker, Sep 21, 2010.

  1. W4rl0ck


    Prechter has called 500 of the last 2 bear markets. :D

    I get the suspicion he doesn't even know EWT.
  2. from wiki:

    While Prechter has his admirers, he has been criticized by media and pundits for his long term record. For example, The Wall Street Journal ran a page one article in August 1993 with the headline, "Robert Prechter sees his 3600 on the Dow – But 6 years late," in reference to Prechter's 1987 forecast for the Dow Jones Industrial Average.[15] Technical analyst David Aronson wrote:

    The Elliott Wave Principle, as popularly practiced, is not a legitimate theory, but a story, and a compelling one that is eloquently told by Robert Prechter. The account is especially persuasive because EWP has the seemingly remarkable ability to fit any segment of market history down to its most minute fluctuations. I contend this is made possible by the method's loosely defined rules and the ability to postulate a large number of nested waves of varying magnitude. This gives the Elliott analyst the same freedom and flexibility that allowed pre-Copernican astronomers to explain all observed planet movements even though their underlying theory of an Earth-centered universe was wrong.[16
  3. W4rl0ck


    So - watched the vid and he's NOT predicting 2000, just saying there's a big H&S in the Dow forming.

    He is saying mutual funds are at all time low cash and investor sentiment is very bullish. So go to cash and PM's. He said the bubble is in junk, muni and corp bonds. Sounds reasonable. As soon as rates start up again, junk bonds are getting toasted.

    Commissar Bernanke can devalue the $US to toilet paper to prevent the market from crashing again. Like he said - the Central Bank Commissariat can buy the entire US market, no problem.