After May Sell Off Prechter Still Sees Long Bear Market, Likes Cash Not Gold (Has Too Many Bulls)

First off, did you listen to Robert Prechter (Elliott Wave International) in April when he said "between now and May is the 3rd best selling opportunity since 2000"?  He called that one right!  Prechter was on Tech Ticker last week giving his prediction that stocks are in for a very long bear market.  By the way, Distressed Volatility is not a perma-bear blog as the name implies, I let chart technicals decide direction.  Embedded videos are used to promote different opinions whether they agree with the chart or not.  If you want recent bullish commentary see posts with Barton Biggs (Traxis Partners).  Prechter said we are in minor Wave 3 (of 5) of C?  Elliott Wave people correct me if I'm wrong.  Here are key points Prechter made and the Tech Ticker video.

*Started second major wave of deflation, this one should be much larger than the first
*In minor 3rd wave, should be in for week or two of serious selling w/ bounces
*In leg down/"wave of recognition", where fundamentals catch up with technicals
*Mentioned the text book head and shoulders pattern from 2000-2010
*Recommends being in cash inside safe financial institutions
 See recent blog posts with Prechter.


In the next Tech Ticker video, Prechter said the gold bull/bear ratio was too high (too many bulls) and it has lost upside momentum since 2006. He also said $1 trillion couldn't save the Euro.