Rant on Kool-Aid

It's almost downright comical how there are very few people that respects Mr. Market! Instead, they cling to fantasizing about P3 and drink all of the Elliott Wave "Kool-Aid" that they can get their hands on . . . They're never wrong. It's Mr. Market that is WRONG and they'll come up with tons of "conspiracy" theories to try and blame their trading losses on someone else. That is the mark of a LOSER, not a winner. Anyone that has half a clue was fully aware that Investor's Intelligence sentiment showed less than 30% bulls. They also were aware that the Rydex/SGI Advisor Confidence Index which tracks investment advisor pscyhology was at a 16-month low in August. Bloomberg News also reported last week that the number of "Buy" ratings by brokerage analysts had reached a low not seen since 1997. Anyone that continued to short this market and play their convoluted "the decline from the 1129 SPX high was impulsive and showed a 5-wave decline" simply drank too much Prechter "Kool-Aid". Funny how Glenn Neely actually had the "count" correct for a change, but that's a whole nother issue. There are plenty of money making opportunities in this market. One did not have to be an EWave guru or rocket scientist to figure out that a successful re-test of 1040 SPX would generate a launching pad for a significant rally. But there seems to be an awful lot of bloggers out there in E-Wave Land that only "see" what they want to "see" instead of respecting what Mr. Market is actually telling them. Good Luck to All.

steveo here----

Well I played that bounce out of 1040ish, but it could have just as easily broken down and became a rout...the more times support is tested, the greater the fall will be when it breaks.   But I agree that as you say a success retest of support was a pretty good indicator of more upside. 

Most times, Mr. Market has multiple messages, often conflicting with each other.  In particular this year, it has been very tricky with bull and bear cases being presented at the same time and with the same technical compellingness.

Also, there have in the past, been extended declines AFTER bearish sentiment is already high.    Just because this POS joke of a market has alot of believers that it is way overvalued, does not mean that it is not overvalued.  

Also, I find it funny that EWI, who claim to be highly technical traders, are actually excellent fundamentalists.   And if you watch their tracks closely, you can see they are playing the Astro and time based theories.   Fundamentals will eventually win out, but it is easy to go broke in the meantime if you cling to that Kool-Aid and it is wrong!!!  And if Helicopter Ben has his way with the currency, we could see the fundamentals play out, and stocks become worth 35% of what they are now....but selling for the same dollar number as now.   OK Rant over!