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Mighty Mississippi and Elliott Wave Theory

What does Elliott Wave Theory have to do with the Mighty Mississippi flooding and the Stock Markets?

More than one may think on face value. Elliott Wave Theory tracks a charts wave forms and the data can come from individual stocks, to stock market indices to the human race itself...

image - fr.wikipedia.org

The Mighty Mississippi is roaring her head again. Much how Elliott Wave tracks the stocks, it also can be used to track weather patterns and even some use Elliott Wave Theory Theory to track humanity!

None the less, the facts that you read in this article bring back scary parallels to the last Great Depression, much like these stock market comparison crash charts did a couple years back:

May 12, 2011
NEW YORK (MarketWatch) — A swell of water is moving down the Mississippi River, threatening a catastrophe not seen since the Great Mississippi Flood of 1927.

That event still ranks as one of the worst natural disasters in American history. In part, that flood catalyzed the mass migration of millions of African-Americans to northern cities, propelled Herbert Hoover to the presidency and set the stage for the Great Depression. For more on 1927 flood, see “Rising Tide: The Great Mississippi Flood of 1927 and How It Changed America.”
Read Full: The nightmare Mississippi flood scenario - MarketWatch

"Set the stage for the Great Depression" is the sentence that caught my eye. Very interesting read and I do recommend checking it out. What scares me is the fact that some economic disruption will come from this flood. It is just a question of how bad really. We have Elliot Wave theorists like Prechter telling us the next crash us upon us and lastly; we have a Japanese disaster which just very well may see many corporations not meeting their 2011 July second quarter earnings as expected.

Let me add this piece about the weather and stocks:

"We are not the first to draw a correlation between rising temperatures and rising equity (and hence, falling commodity) markets. A couple of years ago, Bob Prechter of Elliott Wave International, did a study which showed that nearly every mania in paper assets over the past 200 years has coincided with periods of rising temperatures. In fact, the greatest speculative manias in recorded history, such as the Mississippi Bubble and Tulip Mania, occurred when rates of yearly temperature increases were at their peak.

In the twentieth century, the Great Depression of the 1930s in the U.S. coincided with the "Dust Bowl" of the midwest which destroyed much of the wheat and corn crop across the principle growing regions of the country. This led to the financial conditions which eventually caused a boom in commodities (since it greatly decreased the supply of grains). In fact, an argument could be made that the Great Crash of 1929 was, in part, in anticipation of the Dust Bowl of the 1930s."
Source: Weather Cycles and the Financial Markets - CRB Trader Archive

In short, the flood may be a precursor to things, much like back in 1927. Is the Mighty Mississippi telling us something or if not, is Elliott Wave Theory?

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Comments on this item:

Arkansas Rice
12-05-2011 18:35:34
40% Of America's Rice Crop Destroyed Due To Flooding In Arkansas!

13-05-2011 10:24:01
SAN FRANCISCO (MarketWatch) — Flooding on the Mississippi River and the upcoming start to Atlantic hurricane season have drawn U.S. refineries into the spotlight, raising the risks for operational disruptions at a time when retail prices for gasoline and diesel stand near record levels.
See full:
Fort Peck
22-06-2011 11:14:44
A record-setting year of moisture has raised the 134-mile-long reservoir to its highest level ever, an elevation of 2,252.3 feet as of Thursday. Full pool at the reservoir is 2,250. Inflows from the Missouri River, boosted by high water on the Musselshell River, have forced the U.S. Army Corps of Engineers to release a record amount of water from its spillway - 52,000 cubic feet per second, 65,000 cfs when combined with the water being run through the powerhouse.

Yet the lake level keeps rising.SEE FULL:

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