Is this Elliot Wave stuff in any way founded in reality, or is it like divining the future through reading chicken entrails?
I don't know. I gave it some validity because the guy has a PhD.
"Robert McHugh Ph.D. is President and CEO of Main Line Investors, Inc., a registered investment advisor in the Commonwealth of Pennsylvania, and can be reached at www.technicalindicatorindex.com.
Apparently, it is. The trick is actually identifying where you are in the wave patterns. These become apparent generally only after they've occurred, which is what makes it fun to read these sorts of articles identifying wave I,II,III, etc. The theory is based on investor and mass psychology.
The Elliot Wave is a mathematical pattern. Technical analysis of the Stock Market tracks these patterns to predict whether a Bear (falling) market or Bull(rising) market. We have a 50/50 shot of the market going higher or much much lower. I’ve got that queasy feeling myself.
chicken entrails