24/02/2011 – When You FEEL the Elliott Waves, Your Eyes Become Wide Open

I came to work for Elliott Wave International in the late
1980s — before the Internet, before ETFs, before smartphones.
Part of my job was to review the many publications that came
to our offices, in search of articles that spoke to the “mood” of
the markets.

It was a task that constantly searched for an answer to the
question, Is there a large cluster of articles in print
right now to indicate that people are extremely “bullish” or “bearish”? At
that time my searches related mostly to the commodities markets,
but I also kept close tabs on stock market news.

At first it was tedious. When I found groups of articles that
reflected a certain mood, I would clip and save them to a file
for our analysts to review. Yet after several months, I actually
began to develop a feel for the mood patterns in the articles.
I started to use this to see if I could anticipate where the
price trend would go over the next several days or weeks.

The idea was simple: When the mood in the news articles got
extremely bullish – and our Elliott wave counts suggested
that a rally was completed — it would often represent a downside
opportunity; when that mood became deeply gloomy, it was usually
time to get bullish.

I was amazed — my adrenaline was pumping. I actually started
to get a feel for the waves — a feeling for the direction
of the market! I was hooked, so I took it to the next level.

I had read Prechter and Frost’s Elliott Wave Principle – Key
to Market Behavior before I interviewed for my position.
It was interesting, but it didn’t really speak to me.
But after I had personally experienced and understood what
it means to feel the mood of the markets, I read it again.
The second time took on a whole new meaning.

If you read Elliott Wave Principle a long time ago,
or wish to read it for the first time, Elliott Wave International has
just released an online edition of this investment classic,
free to members of Elliott Wave International’s Club
EWI. Membership is free. This is your chance to learn how the
waves of social mood can change the way you invest forever.

Follow
this link to become a member, and to receive FREE online
access to Elliott Wave Principle, and the many other
free investment and trading reports available to Club EWI
members.