Saturday, April 18, 2009

Glenn Neely and NEoWave

Although he doesn't play ice hockey, there are other similarities and comparisons relevant to Glenn Neely that makes this post a natural follow-up to my ode to Pavel Datsyuk. Neely is one of the most brilliant market observers and analysts of our time. My accolades are not easily earned, but without a doubt Neely's view of the markets he covers, Stocks, Bonds, Gold and Currencies, is probably the most important opinion or analysis a trader need have, second only to your own.

Neely and Robert Prechter are almost always joined at the hip by media-derived reviews of current Elliott Wave theorists. Therein lies the rub, for Neely to be relegated to just another Elliott Wave interpretation misses an entire body of work and analysis that this man has generated over the past thirty years. If one were to look at his work, derived in part from his book, Mastering Elliott Wave, but more importantly from his published commentaries to his subscribers, it becomes readily apparent that there is a whole lot more to this analysis then numbers and letters on a chart.

From the opening paragraph of his book, you know that there is something different going on here:

From an Elliott Wave perspective, the plotted price activity of a market is the graphical representation of crowd psychology. The Wave Theory describes how local plotted data relates to surrounding data, how data should behave under a multitude of circumstances, when and how psychological trends begin and end, how one psychological environment mandates the unfolding of another and what general shape the price action should exhibig upon completion. In other words, the Elliott Wave Theory organizes the semingly random flow of market price action into identifiable, predictable patterns on the natural progression of crowd psychology.
From Mastering Elliott Wave, Chapter 1, "What is Elliott Wave Theory.....Price Patterns of Psychology"; presented at's description of the book.

Neely describes his approach to measuring crowd psychology in a scientific, objective context as "NEoWave." What are the differences between NEoWave and Elliott Wave? The public (free) area of the NEoWave web site carries a easily understood explanation:

Elliott Wave and NEoWave: How Do They Differ?

There is so much to Neely's analysis that hesitate to even try to explain it with my own words. For $39, Neely offer's a two-week trial to his four forecasting and trading services:
NEoWave TRIAL Offer

2-Week Subscription for only $39

What You Get

The NEoWave Trial Service provides a comprehensive sampling of all NEoWave Forecasting and Trading services released over a 2-week period.

The NEoWave Forecasting service provides Mr. Neely’s unique NEoWave analysis on four cash markets. When you subscribe, you will immediately receive (by email) the most recent updates for:

Euro Currency

This is a good deal, it will introduce to an entirely novel and fascinating analysis of major trading markets. For the cost of the commissions on a couple of stock trades, you can feed your head (apologies to Grace Slick) instead of your broker.

One more thing. What was Glenn Neely's market opinion at about the same time I had published my Crash Warning post?

With his permission, Glenn Neely's S&P Forecast chart from early October, 2008:

October 2008 Interview with Glenn Neely



Anonymous said...


I noticed you took down your link to The Foundation For The Study of Cycles and no product review of their offerings is posted since the original positive post.

Can you explain too us what the situation is?

Have you tested the product and found it to be a non-useful trading tool?

- Doug, Miami

Anonymous said...

Hi Allan,

Comic Sans walks into a bar and the bartender takes one look and says "sorry, we don't serve your type".

Warmly, Joe/NYC

Anonymous said...

Red Wings won 4-0 ...

Allan, do you expect an oversold bounce from the gold miners ???