Editor’s Note: This article has been excerpted from a free issue of Robert Prechter’s monthly market letter, The Elliott Wave Theorist.

The full 10-page market letter, Be One of the Few The Government Hasn’t Fooled, can be downloaded free from Elliott Wave International.

By Robert Prechter, CMT

“Who Will Benefit From The Housing Act?”

This question is an actual headline from a national daily paper. The real answer is: mortgage lending corporations, developers, real estate agents, speculators and politicians. The government is also pledging tax money to providers of “financial counseling” and grants for speculators who want to “buy and renovate foreclosed housing”; in other words, it will hand tax money to charlatans and unfunded wheeler-dealers. But a far better headline would have been, “Whom Will the Housing Act Hurt?” The answer to that question is: (1) prudent people, i.e. …

November 19, 2008
Editor’s Note: On Nov. 19, 2008, the U.S. Labor Department reported a 1 percent drop in the consumer price index for October 2008. The drop marked the largest decline in 61 years, and it was the first decline in that measure in nearly a quarter of a century. The 1 percent drop was twice as large as many mainstream analysts had forecast. Such a large decline in consumer prices is forcing …

Key News• Bad Crop: Commodity Currencies   Currencies of commodity exporters such as Canada and Australia could suffer further as global growth weakens. (WSJ)• Home Inventories Remain Huge (WSJ)• Strains Mount on Bailout Plans  The U.S.'s financial-system rescue plans are coming under strain as an array of distressed companies ratchet up their requests for assistance. (WSJ)

Quotable “The harder you work, the luckier you get.”

  Attributed to Gary Player (among others)

FX Trading – Defining the Correction, and Finding Its End!

Jack’s been running around speaking at various currency tours and seminars this year. And there’s one line he likes to use when conveying the uncertainty of trading in any market ...

“It’s better to be lucky than good.”

In other words, when we’re trading our money and effectively have our clients’ money on the line, we’ll take lucky any day if it means we, and our members, are making money. Being ‘good’ doesn’t always

By Robert Prechter, CMT
Elliott Wave International

The following was adapted from Bob Prechter’s 2002 New York Times and Amazon best seller, Conquer the Crash – You Can Survive and Prosper in a Deflationary Depression.

Deflation requires a precondition: a major societal buildup in the extension …