The Big One is Coming?

Dave Goodboy alerted me to a press release that came across his desk today. An excerpt:

Aliso Viejo, CA (PRWEB) June 16, 2009 — Glenn Neely, founder of NEoWave Institute and prominent Elliott Wave analyst, today announces a startling prediction: The S&P 500 is forming a major top in June, which will be followed by a large decline, eventually pushing the stock market to record lows for the decade. “Technically speaking, according to NEoWave a correction began at last October’s low; the March-June rally is the final leg of that correction,” Neely explains. “The March-June rally is now ending, allowing the bear market to resume. During the next six months, the S&P will decline 50% or more, breaking well below 500!” Currently, the S&P is hovering around 917.

Neely might be right or he might be wrong, but regardless of what might happen in the future if you have a plan predictions are not needed.

5 thoughts on “The Big One is Coming?

  1. I think Robert Drach accurately characterized the financial media last year: “So each day begins like a room of monkeys. One monkey gets scared and screeches and jumps, then they all jump and screech.” — Jeff

  2. My own rule based trading is as close to a trend following model as I have ever traded, yet still I find big picture concepts, especially by innovative thinkers like Neely, helpful, even if only to affirm macroeconomic implications of my models.

  3. Pay attention to heard mentality, just don’t trade the herd’s predictions……….

  4. I think the guy could be right in his thinking. As a trend trader I will be looking to set up trades that go along with that line of thinking. That would be short stock index, long t-bond (for a while), and many commodities will be scorched in a stock collapse, long dollar, short british pound. That is my thinking going into the summer of 2009, but it could be wrong in which case I will get hit on my stop loss points. If the down trend does unfold like I think it could, we might not have a bank left to draw all those millios that we make out of. Just a thought.

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