Bob Prechter is Bearish on Stocks, Silver and Oil, Likes Dollar (2/25/2011)

Robert Prechter, president of Elliott Wave International, was featured on Tech Ticker on 2/25/2011. The last time I featured Prechter was on 8/12/2010, when he was bearish on stocks and bullish on the US Dollar. Since then, the market rallied hard during QE2 and the $USD declined, but he still hasn't changed his views. In fact, Prechter noted that investor optimism in stocks is at an extreme not seen since 2007, when the stock market peaked. Prechter is confident that the S&P 500 is in a cyclical bull market within a structural bear market. Watch the video after the jump with links to 2 and 3.

  • "AAII (American Associate of Individual Investors) 10 week average of the % of bulls - % of bears is above where it was at the peak in 2007 for the stock market" 
  • "Advisors (Investors Intelligence) on a 10-week moving average are also higher than they were in 2007, meaning they are more optimistic or have been over the past 10-weeks"
  • "Futures traders hit 93% (98% bearish 2 years ago at the bottom)"
  • "I think we are nowhere near the end to the bear market." (he said the stock market could make a new low)
  • "Oil has hit not only 97% bulls (daily sentiment index) but the last time it hit that number was the first week of July 2008 just before it crashed 78%. It has also retraced 62% of its crash decline since 2008, and it's on news...."

Segment #2 Yes, Robert Prechter Is Still Worried About Deflation (Gold) Segment #3 Social Mood Has Turned Negative and So Will Stocks