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Free Week Is Over, BUT... The Opportunities Have Just Begun

By Nico Isaac
Wed, 25 Jun 2008 12:30:00 ET
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On Wednesday, June 25, Elliott Wave International completed its annual Financial Forecast FreeWeek event. Not surprising in this climate of economic contraction and uncertainty, the number of FreeWeek participants and Club EWI sign-ups this year was overwhelming. 

Thousands of people from all over the world took advantage of instant, no-cost access to the uniquely rich insights and lessons that come with our subscriber-only services. 
Here are just some of those FreeWeek highlights: 
Does the Fed Control the Markets? Answer: NO. Interest rate reductions by the Federal Reserve DO NOT provide a tailwind for equities. Here, the June 20 Short Term Update presented an incredible chart of the Dow Jones Industrial Average over the course of the Fed’s year-long rate-slashing, cash-injecting crusade. The results: Since August 2007, the central bank has cut rates seven times to 2%, and held 14 public loan sales through its Term Auction Facility. But: the Dow is down more than 11% from its October 2007 peak. 
The Dow’s Decline: Summertime has only just arrived, but U.S. stocks are already sweating BULL-ets. Here, the June 2008 Elliott Wave Financial Forecast (published May 30) foresaw the market’s meltdown and wrote: “The next significant event should be a solid break of the 34-year support line. This line crosses just above 12,000.” Flash ahead: On June 20, the DJIA plunged below the psychologically important 12,000-level for the first time since March. 
(Free Week May Be Over, but the opportunities are just beginning. The three main publications of our Financial Forecast Service provide the most comprehensive outlook of the near and long-term trend changes in store for the world’s leading markets. Click here for all the details.) 
Gold Goes Cold: In the June 18 Short Term Update, our analysis went on high alert to gold’s downside potential and wrote: “As discussed Monday, both structures carry the same message: Lower prices ahead.” On June 23, the market bungee jumped off a cliff without a bungee chord, plunging $30 to a one-week low. 
Credit Crisis Over? The “hit bottom” bandwagon rides again as the mainstream experts declare: “Day of reckoning is nigh in credit crisis.” Are they right? The June 20 Short Term Update wastes no time getting to the truth, with a powerful close-up of the S&P 500 versus the Spread between the Moody’s Corporate Bond Indices BAA and the yield on the 30-year US T-Bond. In STU’s words: “As long as spreads continue to deteriorate, the ‘worst’ lies ahead.” 
Crude Oil At A Critical Juncture: In the June 6 Elliott Wave Theorist, EWI President and Theorist editor Bob Prechter himself presented four, jaw-dropping snapshots of Crude Oil alongside several pages of invaluable insight. In Bob’s own words: “I am publishing this issue a bit early to alert you to an opportunity developing in the oil market.” 
(Editor’s Note: A brand-new June 25 Short Term Update includes original price charts and objective analysis of all THREE leading U.S. stock markets, treasuries, gold, silver, the euro, the U.S. dollar, and more. Also, on Friday June 27, the highly anticipated July 2008 Elliott Wave Financial Forecast hits the virtual stands and will be made live, on line. Click here to see tomorrow’s news today.) 

Tags: Federal Reserve, rate cuts, T.A.F, dow jones industrial average, Dow, Gold, Crude oil, credit crisis

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The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.

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