Criticism of Prechter and Hochberg

When the Elliott Wave Theorist (subscription service, pay to get your advice) issues a market opinion, I imagine Jimmy Cagney holding a machine gun at your head saying "you dirty rat". Then firing dozens of bullets.

Why this imagery and comparison? Imagine you want to kill someone financially (and demoralize them too!). How would you do it? Well,, the way they do it is a pretty good model. Make very strong impassioned arguments against the large trend in force so that people bet against the trend. Do not provide them stop loss points. Then regardless of how much the market goes against your subscription clients, the very people paying you subscription fees, keep pounding the table at how everyone else is a sucker.

SP500, Nasdaq, Bonds, Euro, Gold, Silver, all strongly move up to high after high, for months.

Prechter and Hochberg pound the table with meaningless drivel (but arcane and exacting drivel, so the more impressive it sounds). How those strong up trends will end. How everyone is wrong. For the year 2020, in April, May, June, July, their message has been strongly consistent: All the markets just listed will drop very strongly.

What is ironic is they are a technical analysis service (in theory). Yet they talk about fundamentals so much that it's not correct to call them just a technical service. They also have gotten the fundamental analysis as wrong as their technical analysis. So they do a terrible job there too.

They aren't just the worst, they are the most impressively worst. Just think Jimmy Cagney.

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