ADVICE ON INVESTING IN THE STOCK MARKET.

MARKET PANIC AS PER ELLIOT WAVES

A panic is an emotional problem, not an Elliot problem. The Wave Principle simply warns the investor of impeding changes in the trend of the market for better or for worse. Deciding what to look for in the next ten years is more important than trying to predict what  to expect definitely. No matter how we struggle with long term future probabilities, our interpretations must remain tentative until the fifth Minor wave of the fifth Intermediate of the fifth Primary is under way from the 1974 low. As the “fifth of the fifth” nears its terminal point, the Elliot wave analyst should be able to recognize the end of the Cycle bull market in stocks. In analyzing market movements under the tenets of the Wave Principle, remember that it is always the count that is most significant. Our advice is to count correctly and never, never proceed blindly on the assumptions of a preconceived scenario. Despite the evidence presented here, we will be the first to discard our predictions if the waves tell us we must.

We have given this question due thought and come up with the conclusion that apparently it is one of nature’s laws that man at times will refuse to accept the rest of its laws. If this assumption were untrue, the Elliot Wave Principle may never have been discovered because it may never have existed. The Wave Principle exists partly because man refuses to learn from history, because he can always be counted upon to be led to believe that two and two can and do make five. He can be led to believe that the laws of nature do not exist (or more commonly, “do not apply in this case”), that what is to be consumed need not be first produced, that what is lent need never be paid back, that promises are equal to substance, that paper is gold, that benefits have no costs, that the fears which reason supports will evaporate if they are ignore or derided.

Our friend Richard Russell describes the problem this way:

I firmly believe the world’s troubles would be solved (and the earth would resemble heaven) if everyone would take total RESPONSIBILITY for himself. In talking to hundreds of people, I don’t find that 1 in 50 holds himself up, takes responsibility for his own life, does his own thing, accepts his own pain (instead of inflicting it on others). The same refusal to take responsibility spills over into the financial sphere. Today, people insist on their right to everything – as long as you and I pay for it. There’s the right to work, the right to go to college, the right to happiness, the right to three meals a day. Who promised everyone all those rights? I believe in freedom of all kinds, except where freedom becomes license and inflicts damage. But Americans confuse freedom with rights.

As this century progresses, it becomes clearer that in order to satisfy the demands of some individuals and groups for the output of others, ma, through the agency of the state, has begun to leech off that which he has created. He has not only mortgaged his present output, but he has mortgaged the output of future generations by eating the capital that took generations to accumulate.

In the name of a right that does not exist within the laws of nature, man has forced acceptance of paper that represents nothing but costs everything, he has bought, spent and promised at an exponential rate, creating in the process the greatest debt pyramid in the history of the world, refusing to acknowledge that these debts must ultimately be paid in one form or another. Minimum wages that deny employment to the unskilled, socialization of schools that smothers diversity and discourages innovation, rent control that affects housing, extortion through transfer payments, and stifling regulation of markets are all man’s political attempts to repeal the natural laws of economics and sociology, and thus of nature. The familiar results are crumbling buildings and rotting railroads, bored and uneducated students, reduced capital investment, reduced production, inflation, stagnation, unemployment and ultimately widespread resentment and unrest. Institutionalized policies such as these create increasing instability and have the power to turn a nation of conscientious producers into a private sector full of impatient gamblers and a public sector full of unprincipled plunderers.

THE UNIVERSE MEASURED – GURU DISCIPLE CONVERSATION CONTINUES…

“Well, it takes into consideration that all that exist in the universe is based on the value from 0 to 9 and that all measurements above 9 is the same as a value between 0 and 9.”

“You mean that 11 is really 2 because  1 + 1 = 2 right?”

“Right? And 12 is really 3 which is 1+2..”

“So the question of how big or how long or how far is something will always be between Zero and Nine”

“So if a question is asked as how big is the universe ?  The answer would be  9 but 9 of what?”

“9 of whatever you want!”

“I do not understand,  Guruji! Do you mean miles , light years, kilometer or what unit?”

“It  can be whatever the unit is , it still that number which adds up to a number between 1 and 9!”

“So your are saying  that if the universe is 100,000,000 ( million) miles across its really 1 mile?”

“No, its just 1, the word mile is a man made unit for something I do not know of, neither do you!”

“What if I say 800,000,000 miles , then you would say , its 8 whatever units big?”

Correct…but without miles as the unit. Whatever the numbers it will still be a value from 0 to 9″