From: [EMAIL PROTECTED] The DOW and Eliot Wave Theory WERE THE 90'S THE DECADE OF JUNK STOCKS? January 14, 2000 >From Ru Mills, Editor, Rumor Mill News Agency <A HREF="http://rumormillnews.com/">The Rumor Mill News Agency</A> An interesting article has just been posted on the Rumor Mill News Forum. I have pasted it in below. It is about the DOW and Eliot Wave Theory. While I was reading it, I was reminded of a conversation I have recently with one of my Sources. The Source referred to the 80's as the decade of "Junk Bonds". Then he said, "If the people who lost their shirts to the likes of Michael Milken and his junk bonds think the 80's were financially devasting, just wait til they realize that the 90's was the decade of "Junk Stocks", and AOL is at the top of the list!" (The Source made the AOL reference before AOL took over TIME-WARNER with a stock swap.) I don't know anything about the "theory" that is being stated below. The purpose of this email is to ask if anyone on the Ru Mills One List can add any information to this. My Sources tell me that the next significant day in the financial world will be January 21st. I find this date significant for two reasons. Most of you know that Helen Thomas, the UPI White House correspondent, sent out an article whose headline stated, "Clinton making plans to leave the White House January 20, 2000." One of the subscribers to the Ru Mills One List sent me a newsletter from an astrologer who had also zeroed in on January 20, 2000. The astrologer stated that the lunar eclipse of January 20th (read the article on the Forum <A HREF="http://www.rumormillnews.com/cgi-bin/config.pl?read=1034">CLINTON BEWARE THE 20TH OF JANUARY, 2000</A> ) falls on President Clinton's Arab relations. According the the astrologer, the last time this happened, American Embassies were bombed. I find it interesting that my Sources stated that January 21st will be the next significant day in the financial world. According to the astrologer, the lunar eclipse begins on January 20th California time, but in Washington DC, and NYC --- Wall Street --- the lunar eclipse begins JANUARY 21ST!! ...the date my Sources stated would be the next major day in the financial world. I wonder what my Source meant when he stated that the 90's would be known as the decade of "Junk Stocks"? I will post these comments on the Rumor Mill News Forum under the article which I have enclosed below. If you have any comments, please email them to me or post them on the RMNews "Agents Only" Forum. Want to post to the RMNews Forum? Click here to become an RMNews Agent - It's Free! <A HREF="http://www.rumormillnews.com/amform.htm">RMNews - Sign up Today For Free!</A> >From Rumor Mill News Forum <A HREF="http://www.rumormillnews.com/cgi-bin/config.pl?read=1090">The DOW and Elliott Wave Theory</A> The DOW and Elliott Wave Theory Posted By: Loki Date: Friday, 14 January 2000, at 7:52 a.m. This was taken out of Gary North's most recent e-newsletter. It's interesting although I don't know anything about Elliot Wave Theory. I thought some others may have comments about this and the recent manipulation of the market, not excluding Gold and Silver in the C.B.O.T. Also, I believe the DOW is in the 11560 range currently. (Inserted by RMNews: Fri Jan 14 4:27pm ET - U.S. Markets Closed. <A HREF="http://finance.yahoo.com/q?s=^DJI&d=t">Yahoo! Finance - ^DJI</A> DJ INDU AVERAGE ( :^DJI) - More Info: News , Components Last Trade 4:03PM · 11722.98 Change +140.55 (+1.21%) Prev Cls 11582.43 Volume Day's Range 11612.53 - 11750.28 Bid ) The Dow Jones Industrial Average touched 11,568.73 on December 30. Then it fell back. Just one decade earlier, to the week (maybe to the day), the Japanese stock market peaked at just under 40,000. It has never come close to 30,000, except on its downward slide. This 11,568.72 number is curious. Let me explain. I am not a follower of Elliott Wave theory. It's too complex a system for my abilities. But last May, I received a detailed essay from a Jean Comeau of Quebec, a commodities advisor -- registered, he says, in Chicago. He wanted me to post the essay on my site. It was not Y2K- related, I told him, so I didn't. Yesterday, he sent it to me again. His essay said that the Dow's top would be 11,550-11,600. He wrote, "WAVE 5: WHEN DOW JONES HITS 11560 TO 11600 POINTS. END OF MAJOR BULL MARKET, PERIOD. He then got even more specific: Wave 5 or 1999 = Fibonacci number 34 times 339 equals 11526 plus 43 (crash low) equals 11569. I do not pretend to understand this system. Robert Prechter is an Elliott wave theory proponent. I read his book, AT THE CREST OF THE TIDAL WAVE (1995), and I reviewed it in the November, 1995 issue of REMNANT REVIEW. The market has gone far above what he predicted. In fact, he predicted a fall to Dow 1,000, beginning in late 1995 or 1996. But Mr. Comeau's number is highly specific. I do not care that it is 0.28 above 11,568.72. It's close enough. Mr. Comeau is predicting a fall of over 5,000 points in the Dow in the next two months. I think I will ask him to do more writing for me as soon as it falls by 2,000. I am no Elliott Wave aficionado. It's too technical for my taste -- strictly numbers-based. I see no reason to believe that Fibonacci numbers control stock market average prices, especially one market, the Dow Jones Industrial Average. I see no reason to believe that this index, and not some other, is THE number to watch in preparation for a worldwide depression. I think the Federal Reserve can still do a lot to forestall a crash, such as buy S&P 500 futures. The money pouring into the stock market from pension funds today is an ocean. Short of an unexpected crisis -- such as a lock-up of a major bank's computer system or default by some heavily leveraged hedge fund-- I cannot imagine a fall this rapid, now that the Y2K rollover is behind us. Still, I will pay close attention to the Dow. Let's see if it penetrates 11,569. If it does, will it then penetrate 11,600? If it doesn't, I may develop a new interest in Elliott Wave theory -- at least until the end of February. I also listen carefully to two other men who own sophisticated proprietary stock trading systems that call major reversals. Both of them are out of the market. One of them has shorted it. I will keep you informed of their opinions if the overall stock market starts down. If the NASDAQ is the leader, it looks bad for the general stock market. But maybe investors are merely coming to their senses about BUBBLE.COM. Of course, if they come to their senses about price/dividend ratios, it's also bad news for the market. WHY NO POST-Y2K MARKET BOOM? Most people did not act on Y2K. They told pollsters that they would, but they didn't. I think this is why the rollover's good news has not created a boom in the U.S. stock market. The Dow started down on Monday and continued lower on Tuesday, then reversed. The NASDAQ was up on Monday but hit hard on Tuesday. It was down again on Thursday. In 3 days, it fell almost 10% from its high. As Y2K optimism grew in the final weeks of 1999, the U.S. stock markets reflected this. But the pessimism had never been deep. So, we are back to fundamentals. The fundamentals are these: The FED pumped up the money supply in late 1999, and now it is unlikely to stoke the fires of inflation. The money spigot will be tightened. This is a presidential election year. Traditionally, this means more fiat money to fuel an economic boom to get the incumbent's party re-elected. But Mr. Clinton has just reappointed Mr. Greenspan to another term as chairman. Mr. Greenspan's career is going to be longer than Mr. Clinton's. So, I do not expect the FED to play the political game this year, not after the recent Y2K-related expansion of money. Mr. Greenspan is no fan of "irrational exuberance" in the stock market. This market boom -- the NASDAQ especially -- has the marks of a financial bubble. "Infomagic" has called it BUBBLE.COM. | Return to Index | Read Prev Msg | Read Next Msg | Password: Rumor Mill News Forum is maintained by Administrator for RumorMillNews.Com !. Disclaimer: The opinions on this page do not necessarily reflect the views of Rumor Mill News, our publisher, our writers, or our advertisers. The messages posted on the Rumor Mill News Forum reflect the opinions of the readers and writers of the Rumor Mill News Forum. | Home | Latest Rumor | Interviews | Archives | Products | About Us | | Mailing List | Message Board | Guest Book | Links | Contact Us | Designed and Maintained by the Webmaster. --------------------------- ONElist Sponsor ---------------------------- Get great offers on top-notch products that match your interests! Sign up for eLerts at: <a href=" http://clickme.onelist.com/ad/elerts1 ">Click Here</a> ------------------------------------------------------------------------ RMNews, The Uncensored National Rumor
