Preface from Tim: Below is an item contributed from Avi, which obviously is in sharp contrast to my own point-of-view. I’m glad he wrote this, though, because it saved me some time in doing a post I was going to construct called “Elliott Wave’s Last Chance”. I will summarize what the post was supposed to be about………
Our friends in Gainesville were hyper-bearish from 2009 until sometime last year. Back in 2009, they stated that the S&P might claw its way back to 1000 or so, but then it was going to be plunging back beneath the 666 low. As most of you realize, this never happened. Year after year, though, the crash was always around the corner.
At some point – – I’m not sure when, but I think within the past year or so – – they massively changed their tune (and their wave count). Their current position is that LIFETIME highs are still forthcoming, pushing even past what we saw earlier this year. Avi seems to agree.
by Avi Gilburt, ElliottWaveTrader.net
The market has finally followed through on the pullback we were expecting to the 2335SPX region from 2400SPX, as we have outlined. The structure of the market over the coming week will likely tell us when the next 200-point rally to 2500SPX takes hold.
This past week, I read an article by a writer that has been decidedly bearish the stock market for quite some time. In his latest missive, he reiterated his position that the stock market is disconnected from the fundamentals of real world dynamics. And, then I read another article stating outright that this market is dangerously overpriced.
They seem to be no different than most analysts today claiming that the market is not being driven by fundamentals at this time. And, yes, I simply love that statement. It just makes me chuckle every time I hear it. It is no different than saying that the steering wheel is not driving a remote-control car. Well, of course it isn’t. It never has.
As Jeff Miller appropriately summed it up in his recent update: “Most pundits, media, “smart money,” experts on valuation have been completely wrong for many years.”