{"id":92626,"date":"2016-07-08T13:44:00","date_gmt":"2016-07-08T17:44:00","guid":{"rendered":"http:\/\/countingpips.com\/?p=92626"},"modified":"2016-07-08T13:44:00","modified_gmt":"2016-07-08T17:44:00","slug":"why-stock-market-investors-should-expect-the-unexpected","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/07\/why-stock-market-investors-should-expect-the-unexpected\/","title":{"rendered":"Why Stock Market Investors Should Expect the Unexpected"},"content":{"rendered":"<div id=\"inves-17696609\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">July 8, 2016<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><h3 style=\"margin-top: 0px;\"><span style=\"font-size: small;\">Read our forecast for a market rally in the wake of Brexit <\/span><\/h3>\n<h3 style=\"margin-top: 0px;\"><span style=\"font-size: small;\">By Elliott Wave International<\/span><\/h3>\n<p>[Editor&#8217;s Note: The text version of the story is below.]<\/p>\n<div class=\"embed-responsive embed-responsive-16by9\" align=\"center\"><span class=\"LimelightEmbeddedPlayer\"><object id=\"limelight_player_281280\" class=\"LimelightEmbeddedPlayerFlash embed-responsive-item\" data=\"http:\/\/assets.delvenetworks.com\/player\/loader.swf\" type=\"application\/x-shockwave-flash\" name=\"limelight_player_281280\" width=\"600\" height=\"500\"><param value=\"http:\/\/assets.delvenetworks.com\/player\/loader.swf\" name=\"movie\" \/><param value=\"window\" name=\"wmode\" \/><param value=\"always\" name=\"allowScriptAccess\" \/><param value=\"true\" name=\"allowFullScreen\" \/><param value=\"channelId=9ddb168ffe63457387e2a111bf82d74b&amp;deepLink=true&amp;playerForm=b549182c27004e88b54afaf008c55c81&amp;defaultQuality=900&amp;mediaId=\" name=\"flashVars\" \/><\/object><script>\/\/ <![CDATA[\n LimelightPlayerUtil.initEmbed('limelight_player_281280'); \n\/\/ ]]><\/script><\/span><\/div>\n<p>Investors who jump on &#8220;sure things&#8221; in the stock market usually lick their wounds with regret.<\/p>\n<p>The decision of British voters to leave the European Union appeared to represent low-hanging fruit to short sellers.<\/p>\n<p>After the June 23 vote, the Dow plummeted 610 points on June 24 and tumbled another 261 points the next trading session on June 27.<\/p>\n<p>Even professional investors thought the stock market pain would persist. A June 27 Wall Street Journal article focused on Brexit:<\/p>\n<blockquote><p>&#8220;This is likely to be a fairly prolonged process that unfortunately is going to be a bit of a messy negotiation &#8212; that&#8217;s not great for asset prices alone,&#8221; said [a] portfolio manager at Fidelity Investments.<\/p><\/blockquote>\n<p>But, contrary to popular belief, we&#8217;ve observed that events &#8212; even historical ones like Britain&#8217;s decision to leave the EU &#8212; do not govern the market&#8217;s trend. Instead, the market&#8217;s price pattern unfolds according to the Wave Principle, which provides a detailed model for how investors behave.<\/p><div id=\"inves-2308724026\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>Based on the Wave Principle, our June 29 Short Term Update said:<\/p>\n<blockquote><p>Monday&#8217;s [June 27] low marks the end of the pullback from the April-June highs in the Dow and S&amp;P 500. The next Minor-degree advance is starting &#8230; .<\/p><\/blockquote>\n<p>The next day, June 30, the Dow ended the session up 235 points, which carried the index to its fifth straight higher monthly close.<\/p>\n<p>Later that evening, a CNBC headline quoted one of its well-known hosts:<\/p>\n<blockquote><p>This rally wasn&#8217;t supposed to happen<\/p><\/blockquote>\n<p>The article goes on to say:<\/p>\n<blockquote><p>Suddenly out of nowhere &#8212; after a Brexit was supposed to create a disaster in the stock market &#8212; acquirers came out of the woodwork to spend billions to buy other companies, which crushed the short-sellers.<\/p><\/blockquote>\n<p>Indeed, July 1 was another positive day for the Dow with the senior index closing up 19.<\/p>\n<p>Elliott wave-minded investors have learned to expect what takes the majority of investors by surprise.<\/p>\n<p>The July Elliott Wave Financial Forecast says:<\/p>\n<blockquote><p>The coming month could be a big one for the stock market.<\/p><\/blockquote>\n<hr \/>\n<table class=\"body\" style=\"border: solid 5px #EAEAEA; padding: 10px;\">\n<tbody>\n<tr>\n<td valign=\"top\"><a href=\"http:\/\/www.elliottwave.com\/r.asp?acn=9cp&amp;rcn=aa622&amp;dy=aa070816&amp;url=http:\/\/www.elliottwave.com\/Free-Reports\/Elliott-Wave-Video-Crash-Course\"><img decoding=\"async\" src=\"http:\/\/www.elliottwave.com\/images\/club\/web_ads\/2606-CL-Club-2.gif\" width=\"125\" border=\"0\" hspace=\"5\" vspace=\"5\" \/><\/a><\/td>\n<td valign=\"top\"><strong>Learn the Why, What and How of Elliott Wave Analysis<\/strong><\/p>\n<p>Financial media use news and economic events to explain market moves. Steer clear of this misguided approach. Learn what really moves the markets with The Elliott Wave Crash Course.<\/p>\n<p>In this series of three FREE videos, Senior Tutorial Instructor Wayne Gorman demolishes the widely held notion that news drives the markets. Each video will provide a basis for using Elliott wave analysis in your own trading and investing decisions.<\/p>\n<p><a href=\"http:\/\/www.elliottwave.com\/r.asp?acn=9cp&amp;rcn=aa622&amp;dy=aa070816&amp;url=http:\/\/www.elliottwave.com\/Free-Reports\/Elliott-Wave-Video-Crash-Course\"><strong>Access your free Elliott Wave Crash Course now<\/strong><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div>\n<p style=\"padding-top: 10px; border-top: solid 1px #CCCCCC;\"><em>This article was syndicated by Elliott Wave International and was originally published under the headline <a href=\"http:\/\/www.elliottwave.com\/r.asp?acn=9cp&amp;rcn=aa622&amp;dy=aa070816&amp;url=http:\/\/www.elliottwave.com\/Stocks\/Why-Stock-Market-Investors-Should-Expect-the-Unexpected\"><strong>Why Stock Market Investors Should Expect the Unexpected<\/strong><\/a>. EWI is the world&#8217;s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Read our forecast for a market rally in the wake of Brexit By Elliott Wave International [Editor&#8217;s Note: The text version of the story is below.] Investors who jump on &#8220;sure things&#8221; in the stock market usually lick their wounds with regret. The decision of British voters to leave the European Union appeared to represent [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-92626","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/92626","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=92626"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/92626\/revisions"}],"predecessor-version":[{"id":92627,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/92626\/revisions\/92627"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=92626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=92626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=92626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}