Welcome to Science Investing!
Our goal is to contribute outstanding macroeconomic forecasting. We focus on the most liquid assets that are subject to worldwide public attention.
We combine macro- and behavioral economics with Elliott wave analysis. We believe that irrational market participants move markets due to herding behavior. As result asset valuations tend to diverge from their long-run mean. The divergence process can result into periodic excesses and even form bubbles.
Moreover, we believe that valuations tend to be mean-reverting in the long run. Oscillation around long-run mean valuations develops in trends. We aim to recognize trends with tools from technical analysis. Elliott wave analysis is implemented across markets in order to identify and predict current trends.
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
The last couple of trading days gave us some strong hints regarding the probable near-term path of the market. Evidence mounts heavily to the bullish side of the ledger.
The Nasdaq 100 marked fresh new all-time highs on Friday. Its top was reached with a non-terminal Elliott wave pattern, which implies more upside. Additionally, we see risk inclination among US and European investors. High-beta stocks were leaders during the past trading week. Risk inclination among investors is also a bullish signal. Furthermore, the overall picture gets confirmed by short-term momentum. It is on the rise and yet another bullish hint.
On top of that, we see the German DAX and French CAC40 with a non-terminal Elliott wave pattern of minor / intermediate degree respectively. We have emphasized during the past weeks that new highs are likely for both indices short-term. The UK FTSE 100 index is ambiguous. Nevertheless, it is at high-odds that it will rebound short-term regardless of its mid-term market pattern.
All in all, the setup for major equity Indices worldwide is clearly bullish short term. Odds are high that bears will get smoked during next week.