Welcome to Science Investing!

Intention

Our goal is to contribute outstanding elliott wave analysis and forecasting. We focus on the most liquid assets that are subject to worldwide public attention.

Approach

Our methods are rooted in behavioral economics and technical analysis. We believe that irrational market participants move markets due to herding behavior. As a result asset valuations tend to diverge, sometimes extremely and even form bubbles, from their long run mean.

Moreover valuations tend to be mean-reverting in the long run. Oscillation around long run mean valuations develop in trends. We aim to recognize trends with tools from technical analysis despite that no scientific support for technical analysis itself exists to our knowledge. Elliott wave analysis is implemented across markets in order to identify and predict current trends.

About

Our passion lies in economics and trading. We have been trained at reputable universities and worked as proprietary traders as well as portfolio managers throughout the past couple of decades. We started exploring the field of behavioral economics due to self interest in the late 90’s. Our curiosity helped us to understand financial markets and asset price valuations with our insights from behavioral science.

Catch Of The Week

We interpret recent selling pressure worldwide as early evidence that risky assets are building a top. This simply means that some risky assets will record new highs whereas others will experience fading countertrend rallies and fail to reach new highs. Two indices, the German Dax and the French CAC 40 exhibit particularly conclusive short term elliott wave patterns. Both of these indices traced out irregular flats. The only possible conclusion of this particular elliott wave structure is that an orthodox top has not been recorded yet. Hence, we expect the Dax and CAC 40 to rally short term.

Technical Analysis