Tommaso: The beginning of the decline could be relatively quiet and just feed on itself. Dipsters buy in the belief that the market will quickly go to new highs. However, with a lengthy decline dipster buying will prove to be the wrong thing to do. It is a lesson that will be learned.
In regard to Elliot, Prechter has written that "The Elliot Wave Principle is a law of probability and relative degree, not a predictor of exact conditions." Edwards and Magee, in their work on technical analysis, also explain that charting can improves one's odds. However, it is not exact either.
In Edson Gould's publication entitled "A Vital Anatomy", he explained that his ". . . approach to the economy is an organic one, not a mechanical one. The economy, in our opinion, is a living thing--an organism. Not a mechanical thing--a machine." He flavored his work with fundamental analysis, technical analysis, and crowd psychology. I believe all these things must be considered in evaluating the marketplace. |
