Long-term analysis of mankind shows troubling trends Using Elliot Wave Analysis to look into the future...
More than just the markets are collapsing, and market charting techniques can help us see the history of mankind in cycles and to see where we are likely headed in the future. The future in this case, appears to be now.
Many technical investors know Elliot Wave Theory as a method to determine stock market direction. There are even those that swear by it, such as Robert Prechter, the modern day flag bearer for this technique of predicting future movements by 'counting the waves' and knowing at which cycle the market is in (5 waves up or a 3 wave correction, etc.). This is all done via or by reading the charts of the market index or the individual stock. It was discovered by a mystified, then broke investor (Ralph Nelson Elliott (1871–1948), just after the 1930's crash and depression.
What many individuals may not realize is that we can apply Elliot Wave Theory to past history- and the wave patterns and cycles work (In particular by determining where we are in the "Grand Super Cycle"). Hence, we can also know generalizations about what the future will hold. For instance, many, including Prechter, have been predicting this financial collapse since the 90's. Some will argue that this down-cycle for the market (and thus humanity) started in 2000 with the dot-com bubble bursting and the subsequent September 11th. 2001 attacks and market drop, which would make these authors spot-on in their charting and analysis.
With this in mind I introduce an in-depth article on the internet called, "12,000 YEARS OF ELLIOTT WAVES" which goes into great detail about using Elliot Wave to look at history and the future OF history itself. After all, the markets simply follow the mood of the populace and not even the PPT can change that... Here in part 5 of their piece, called, "Part 5: Potential causes of an X-wave correction starting in the new millenium" we read:
"According to the long term Elliott wave count presented in the body of this document, we are at the brink of a new Dark Age's longer than the periods of substantially reduced economic activity that characterized the corrective waves that occurred earlier during the current Z3Y1X1 wave, yet not nearly as long as the substantial interregnum that followed the Fall of Rome at the end of wave Z1.... No wonder we cannot begin to imagine a bear market that just might last the better part of two centuries. Yet, as will be shown below, this grim outlook might not be all that farfetched if certain already established trends are carried through to what may well be a feasible scenario of events.
Even if this deeply gloomy future, strongly suggested by the Elliott analysis, does not materialize, there is some evidence to suggest that at least the next few decades may not present such smooth sailing as we would otherwise look forward to enjoy. And the effects of the potential trauma may last long enough to severely inhibit the circumstances our children and perhaps even their children will experience." SOURCE: http://www.gold-eagle.com/editorials_99/mbutler120299e.html
Chart showing the history of the wave cycles and what could be set to come or, dare I say, upon us: COPYRIGHT 1999 BY THE AUTHORS: Joseph M. Miller, Daan Joubert & Marion Butler
Authors note: It is almost surreal to write such a post as above. I almost hit delete more than once, for it is not fun being the bearer of what many will see as bad news. Yet keep in mind it is not news, it is history and although no one of us can see the future, it is good to be prepared. If the weatherman predicts heavy rain and you are going to have to be outdoors, you prepare properly... As my father said, "in the great depression, 75% still worked." Meaning, even if we have a down-cycle, it does not mean the end of the world- we'll just have to adapt. Time will tell and in the mean time, be positive and God Bless you all.