Sometimes, the fundamentals are a distraction to the real market story. For instance, in late August, the mainstream financial media was busy calculating all the ways the fundamentals or news could raise or lower Asian-Pacific stocks.
"Asian stock markets lower amid US recession fears" -- Associated Press (8/22/11)
"Asian stocks lower after Japan credit downgrade" -- Associated Press (8/23/11)
-and-
"Asian Stocks rise on U.S. spending data" -- Kansas City Star (8/28/11)
"Asian Stocks May Rebound As Bernanke Sounds More Confident Note" -- Bloomberg (8/28/11)
Yet no one was talking about the more important story -- namely, that a crystal-clear Elliott wave pattern was flashing in Asia. No one, that is, except Chris Carolan, EWI's Asian-Pacific Short Term Update editor. In the Nov. 20 issue, he brought his readers up to speed on this forecast and pattern (emphasis added):
In late August, we identified an ending diagonal triangle in the rupee that implied a very sharp dollar rally and rupee decline. We noted then that a sharp dollar rally would be similar to the dollar rally that occurred during the 2008 crash.
Carolan's forecast was radical. But was it accurate?
This "scary chart," as Carolan called it, from the November 20 issue shows "just how powerful this dollar rally has been" -- and how dead on his forecast was. The dollar surged more than 15% from its low in August to push near to its 2008 highs against the rupee.
What's more, Carolan didn't need fundamentals or the news to forecast this big move. He simply applied the Elliott Wave Principle's objective rules and guidelines. Of course, forecasting is based on probabilities, and not all forecasts work out so well, but you can see how useful the Wave Principle can be.
These developments are important right now because they have strong implications for the trend in equities. Get complete analysis of Asian-Pacific markets -- and put the Wave Principle to work for you -- with the intensive, three-times-per-week Asian-Pacific Short Term Update. Learn more below.
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The Asian-Pacific Short Term Update gives you in-depth forecasts and analysis, plus detailed Elliott-labeled charts for Hong Kong, Japan, China, India, Australia and more at least three times per week. You'll also get occasional succinct video updates that deliver tradable opportunities and lessons to subscribers.
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