Permabear Prechter calling for major drop

So many people, especially today's rookies, worship this guy Prechter. I've always been critical of him because for the most part he's a permabear. I say most part because he does make tactical calls to cover shorts and/or go long but he's been a long-term bear since 1987. The following is an excerpt regarding this guy.

"Prechter’s forecasts have had mixed results. While the former rock-and-roll drummer achieved fame for predicting a stock market crash two weeks before Black Monday in 1987, his standing suffered in the 1990s because he missed the almost decade-long bull market. In December 2002, he said the Dow Jones Industrial Average would fall below 1,000. It hasn’t dipped below 6,000 since then, climbing 25 percent in 2003 and then another 35 percent through Oct. 9, 2007."


How can someone miss the entire 1990's bull market and still have any credibility? Everyone get's it wrong but for fuck sakes, to miss out on the biggest bull market in history and never admit defeat is simply inexcusable. Ya, he's made good calls but just as many if not more terrible ones. You can add his call for gold to go to $200 in 2000 to the list and once again remaining bearish the entire decade with gold.

According to Mark Hulbert who tracks the performance of newsletters, over the past 20years the performance of Prechter and co. is DEAD LAST amongst all market timing strategies he tracks! But because Prechter and his Elliot wave drones have had success in the last couple of years a lot of people have been worshiping his every word especially many unsuspecting rookies who are now permabears just like him. Apparently Prechter has just recommended traders aggressively go 200% short!
He's expecting a major drop that will eventually make its way below the March lows.

This has the makings of the mother of all bear traps. I've been ranting bearishly as of late but my bearishness is ST in nature. I think we could see a 3-5% correction in the very near future for reasons I've outlined before. I can just see it now...if we get such a correction it's going to get every single bear on earth embracing the "wave c" decline that Prechter is calling for....the same bears who have been beaten and battered to a pulp and want revenge so badly....a lot of them may end up betting whatever they have left in their account. And then.....the mother of all bear traps will be set.

But you know what? If Prechter ends up being right then giddy the fuck up. That means this market will be far from boring and there will be plenty of money to be made on the downside. I have no problems whatsoever embracing the bear side....I've done so in the past. Believe me, I no permabull. But I highly doubt he will be right because the sentiment backdrop from a LT perspective regarding the rally we've seen since March is one of skepticism, disbelief and hatred. That's not the ingredients for a major calamity that Prechter is calling for but rather, the ingredients needed for a bull market to advance.

Bottom line: A correction is likely coming but it will likely set up for the biggest bear trap of the year as bears try to make a final stand going aggressively short thanks to the dire warnings of Prechter.