{"id":9753,"date":"2010-05-26T17:08:03","date_gmt":"2010-05-26T21:08:03","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9753"},"modified":"2010-05-26T17:08:03","modified_gmt":"2010-05-26T21:08:03","slug":"bigger-than-a-10-correction","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/26\/bigger-than-a-10-correction\/","title":{"rendered":"Bigger Than A ‘10% Correction’?"},"content":{"rendered":"

Every Big Bear Grew From a Cub
\n<\/span> <\/span><\/h3>\n

By Elliott Wave International <\/span><\/h3>\n

The famous “10% correction” that market pundits talk about sounds so nice and tidy, so predictable and tolerable. It’s as if this “cute little correction” came neatly wrapped, looked like an M&M candy character, and smiled at you and your family after you open the box.<\/p>\n

If only it were so.<\/p>\n

“If all the market ever did on the downside was dip 10% once every two years, then investing would be easier than shooting fish in a barrel. Obviously, this is not the case. The fact is that the stock market’s movements are a fractal. Declines come in widely varying sizes.”<\/em> – The Elliott Wave Theorist<\/em>, December 2001<\/p>\n

There is no way to know<\/em> in advance whether a particular market downturn will fall 11%, 35% or 89%. Even the Wave Principle only forecasts probabilities<\/em> — not certainties<\/em>.<\/p>\n

Read Part One of Robert Prechter’s Latest Two-Part, April-May Theorists<\/em> FREE<\/a><\/strong>
\nThe April-May Theorist<\/em> series entitled “Deadly Bearish Big Picture” reveals a lucid picture for 2010-2016. It’s the f<\/strong>lipside of Robert Prechter’s February 2009 Forecast for a ‘Sharp and Scary’ Rally. Click here to download the 10-page part one for FREE now<\/a>.<\/strong><\/p>\n

One thing that is<\/em><\/strong> certain — every bear market reached a 10% drop before prices fell even further.<\/p>\n

And another near-certainty is that too many money managers will use the phrase “buying weakness” when the market falls 10%. On May 7, after the Dow Jones had fallen several hundred points in a few days, two money managers being interviewed side by side said in effect, “Buy.” Not a word was said about caution. Not a word was offered about even the possibility<\/em> of a major trend change in the market.<\/p>\n

On the other hand, it was refreshing to hear a representative of a fund family say, “I don’t know why anyone needs to be a hero, and try to catch the bottom.”<\/p>\n

You may be tempted to jump back in because the market has recently “corrected.” Yet consider what EWI’s Short Term Update<\/em> subscribers\u00a0read on\u00a0May 7 — “. . .we would caution that some of history’s largest stock declines have occurred only after<\/em> stocks were deeply oversold.”<\/p>\n

Two key features of the Elliott Wave Principle is its ability to establish a price target<\/em> for the current trend, and a time range<\/em>.<\/p>\n

In his latest Elliott Wave Theorist <\/em>(a two-part April-May issue), Robert Prechter tells why<\/em> market participants should look far beyond a mere 10%-15% move in the now-unfolding trend.<\/p>\n

Read Part One of Robert Prechter’s Latest Two-Part, April-May Theorists FREE<\/a><\/strong>
\nThe April-May <\/em>Theorist series entitled “Deadly Bearish Big Picture” reveals a lucid picture for 2010-2016. It’s the f<\/strong>lipside of Robert Prechter’s February 2009 Forecast for a ‘Sharp and Scary’ Rally. Click here to download the 10-page part one for FREE now<\/a>.<\/strong><\/em><\/p>\n

\n

This article was syndicated by Elliott Wave International. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts lead by Chartered Market Technician Robert Prechter<\/a> provides 24-hour-a-day market analysis to institutional and private investors around the world.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

By Elliott Wave International – The famous “10% correction” that market pundits talk about sounds so nice and tidy, so predictable and tolerable. It’s as if this “cute little correction” came neatly wrapped…<\/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-9753","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=9753"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9753\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}