Re: [CANSLIM] M....Look Out Below

From: Spencer48@aol.com
Subject: Re: [CANSLIM] M....Look Out Below
Date: Sun, 23 Jun 2002 15:32:12 EDT

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Patrick:

     I agree with you with qualifications.  However, I believe the Elliott 
Wave Theory in general terms is a nice theory (and in many cases, even in 
individual stocks, it seems to work-mainly because it proxies itself as a 
psychological indicator (only, instead of using numbers-it uses charts).  For 
instance, an elongated Elliot Wave 5 illustrates the rabid greed of the 
investor.  That's why the wave, instead of ending, keeps going up:  Demand is 
prevalent-and it shows in rising prices.

     That said, I have read many times that Elliott Wave Theory is Fantastic: 
 But only AFTER the fact.  In other words, Elliott Waves are only apparent 
after the stock has made its move.  Then the Wave theorists can say, no 
matter what the stock does, that the stock has moved according to some 
esoteric Elliot Wave Concept.  As an example of this, waves are categorized 
as complex, flats, zig-zags, etc.  As I said, many times Elliot Waves are 
helpful in my understanding of the trend-but I always use my interpretations 
of WON and other tech. indicators to confirm the trend.  Also, once Elliot 
Waves helped in forecasting the trend, you can project what the stock will do 
in the near future.

jans

     


In a message dated 6/22/2002 12:33:37 PM Eastern Daylight Time, 
pjwahl@attbi.com writes:

<< Here is a great quote from that article -
 
 
 Without intending to cast aspersions, it seems that these big-wave theories 
 seem to appeal more to well-meaning eggheads than to demonstrably 
 successful investors. World-altering economic and psycho-social patterns are 
 easier to observe in retrospect than to forecast. The mathematical certainty 
 that appears to attend cyclical waves in the past tend to dissolve into 
uncertain 
 subjectivity in the present.
  >>

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