23 May 2006

Dollar Bottom? Elliott Soup!

Yelnick: Dollar Bottom? Elliott Soup!: "After a precipitous fall, below most pundits' support levels, the Dollar has managed a tickle of an impulse wave back up. The most likely scenario over the rest of the year is for stocks to fall much further, albeit with a possible retest of the recent highs first, and the Dollar to rebound as the Fed continues to increase short-term rates. The STU has been pointing out that all markets have become linked worldwide, with the Dollar going countertrend. Hence they are looking for the Dollar to go quite a ways back up (more than 10% on the Dollar Index) while stocks take their four-year cycle dip (more than 10% down). Let's take a look at what other Ewavers are predicting, and what this means.
Several of you did an excellent job calling the recent stock peak & sharp drop. Dominick is now a reformed bull, having hit this to the day. Prechter also claims a small victory, as he had made May 5 the 'final' turn date about six months ago, and came within a week of it in the Dow and hit it on the head on the S&P. Before we get a bunch of Prechter bashers, remember that the boy who cried Wolf! Wolf! was right in the end. (And yes, the people he was protecting got eaten alive.) Glenn Neely has been watching this ending process with amazement, but last week he notified his readers that the top was nigh, and called it very closely to the day. He now sees the sharp drop as clearly setting up a year-long drop of at least a third off the rise since Mar03. His NeoWave service gives a specific target. He also expects that gold has peaked - the rise of $100 in 10 days is the type of parabolic rise that ends badly; one just never knows how far it will spike. It now appears to have reversed.
What is the implication? Is it the Big One yet? Nope. When the Dollar tru"

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