Bob Prechter "Quite Sure" Next Wave Down Will Be Bigger and March Lows Will Break

http://finance.yahoo.com/tech-ticker/article/299205/Bob-Prechter-%22Quite-Sure%22-Next-Wave-Down-Will-Be-Bigger-and-March-Lows-Will-Break

Bob Prechter "Quite Sure" Next Wave Down Will Be Bigger and March Lows Will Break
Posted Aug 11, 2009 11:52am EDT by Aaron Task in Investing, Newsmakers
Related: ^DJI, ^GSPC, SPY, DIA, QQQQ, ^RUT, BGZ
In late February, Robert Prechter of Elliott Wave International said "cover your shorts," and predicted a sharp rally that would take the S&P into the 1000 to 1100 range.
With that prediction having come to pass, Prechter is now saying investors should "step aside" from long positions, and speculators should "start looking at the short side."

"The big question is whether the rally is over," Prechter says, suggesting "countertrend moves can be tricky" to predict. But the veteran market watcher is "quite sure the next wave down is going to be larger than what we've already experienced," and take major averages well below their March 2009 lows.

Yes, the late 2007-early 2009 market debacle was just a warm-up to what Prechter believes will be the bear market's main attraction. In this regard, he says the current cycle will echo past post-bubble periods such as America in the 1930s and England in the 1720s, after the bursting of the South Sea bubble.

The 2000 market peak market a "major trend change" for the market from a very long-term cycle perspective, and the downside is going to continue to be painful well into the next decade, Prechter says. "The extreme overvaluation, the manic buying and bubbles in the late 1990s [and] mid-2000s are for the history books - they're very large," he says. "The bear market is going to have balance that out with some sort of significant retrenchment."
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326 Comments
Showing comments 1 - 20 of 326Next
mikensay - Tuesday August 11, 2009 12:01PM EDT
Anyone else having problems with the video's?

report abusemaicaray - Tuesday August 11, 2009 12:02PM EDT
No kidding!!!!!! Only an idiot buys into this market.

report abuseDog - Tuesday August 11, 2009 12:05PM EDT
I'm still with the doom and gloom camp. The losers and whiners on this board will always be losers and whiners no matter what the market does....!

report abuseThe Gurl - Tuesday August 11, 2009 12:09PM EDT
Even a broken clock is right twice a day...

report abuse88 - Tuesday August 11, 2009 12:10PM EDT
a major idiot

report abuseyattaboy - Tuesday August 11, 2009 12:11PM EDT
Prechter is always wrong. Except for the times he's right. He's giving an opinion, perhaps worth about the same as yours and mine. But Elliott Wave is not completely bunk -- perhaps because it is now so widely understood. The whole idea behind technical analysis is so you don't have to look at fundamentals. How many of you got out of the tech bubble because of fundamentals (with some gut feeling and luck, I did, so maybe I can get on TT because I called it -- but I admit it was mostly luck...). I look at all TT interviews as points of view, with interesting and different analysis that I could never have done on my own. I don't throw a tantrum if I don't like it -- I just mentally shove it aside. Unfortunately, it seems like most comments here metaphorically represent the beer-bottle-throwing hooligans in the Country AND Western bar in the Blues Brothers movie. Or they represent the 1600's English courtroom where the crowd cheers the judge and jeers the always-guilty defendant. TT is great, but it might be time to pass on the comments...

report abuseDevin J - Tuesday August 11, 2009 12:11PM EDT
Prechter carries some good points and has been right all along. If you like charts these ones are mind blowing. Prepare, it is coming! http://dshort.com/charts/bears/Dow-and-Now.gif http://dshort.com/charts/mega-bear-2000-comparisons.html?mega-bear-2000-quartet-extended

report abusen_j_wolff - Tuesday August 11, 2009 12:12PM EDT
Fed will have good news to boost the market one last time. Then we start toward the lows again. I just hope I can recapture some of the 15% loss I was clubbed with in the past weeks. Still up 15% YTD (with this clubbing) but this one trade is killing me at the moment. I got greedy and didn’t take the 5% and now I have reversed 20% and im down 15%. Wish me luck I hope Bernanke says something phenomenal to turn that trade around.

report abuseSuavi - Tuesday August 11, 2009 12:17PM EDT
This guy shorted at 2007 top, then covered at 2009 bottom. He picked all tops in Gold and Silver last few years. Listen carefully what he says. Read here another written explanation why stocks are waaay over valued: http://www.tradingstocks.net/html/near_bottom.html This is not the time to buy and hold. Those days were gone a decade ago. You must time the market: http://www.tradingstocks.net to protect your savings. What will you do if the market crashes 90% from here? What shape will your 401k be if you stay in the market? It has happened to the past generations. Do not think you are special.

report abuseeblair20@bellsouth.net - Tuesday August 11, 2009 12:18PM EDT
Where do you get these pecan cases?

report abuseBrad Coldman - Tuesday August 11, 2009 12:18PM EDT
Bookmark this page and remember this idiot a year from now.

report abuserichard.klem - Tuesday August 11, 2009 12:19PM EDT
Stop trying to predict the market and just go with the trend: www.originalturtletrader.com

report abuseYahoo! Finance User - Tuesday August 11, 2009 12:20PM EDT
Too far too fast (this current rally) suggests an overvaluation. To those who think that this will continue, what are we to believe? That the market will return to Dow 14,000 and we can just pretend like none of this ever happened?

report abuseBrad Coldman - Tuesday August 11, 2009 12:20PM EDT
Did he say when that next leg down would happen? NO! Did he say where the bottom would be? NO!

report abuseWiseguy - Tuesday August 11, 2009 12:21PM EDT
I agree that you would have to be an idiot to buy into this market! You would be surprised how many idoits are out there! I've not really followed Robert Prechter before, but he is worth listening to. He sounds like an extreme bear but in this market and when you consider the sad cases for consumer credit and real estate in our country (which are crucial to any recovery), you've to respect what he is saying.

report abuseJON M - Tuesday August 11, 2009 12:21PM EDT
I agree with him.

report abuseLeslie - Tuesday August 11, 2009 12:25PM EDT
Major buying opportunity : Ford @ 1 GE @ 5.5 Bank of America at 3 The list goes on...I guess he thinks it will be better than that... Bob how fast did the market go down??? What about the fundamentals? What if the recession is over? What if the dollar stays at the current levels? This period is like the South Sea Bubble???WTF???

report abusemadmilker - Tuesday August 11, 2009 12:25PM EDT
bout time sum1 spoke the truth. and if tis happens.... http://www.liberty.edu/media/9980/attachments/healthcare_overview_obama_072909.pdf Katy bar the door!

report abuserichard.klem - Tuesday August 11, 2009 12:26PM EDT
Has anyone tried this yet? www.originalturtletrader.com

report abusePopoy - Tuesday August 11, 2009 12:26PM EDT
I think the Dow Jones will looking 2009 as written off as irrelevant..They will looking forward to 2010 year, for which the economic forecast is better, much better than 2009, albeit a bit soggy.If short term down turn will occour it probably before November. Why the McCellian Index is once again showing upward.It will reach a highest level since the records begun in 2000.The sell index is not good as the buy signal indicate.The economy is very different shape now than last year.......A very treachery...........Either you go or down,either you are a bear or bull. If another buy signal is given or repeated after this couple of set back mark my word a good momentum will go straight up in the short term.......If the trend will not change Dow jones is and easy distance to reach 10,000.....May I was wrong but the chart never make wrong......If i missed probably I was a fool......Will I........