One of the best articles I have ever read that refutes Prechterian Elliot Wave gold theory was written in 2003 but equally applicable to the gold market today when you see who was right and who was wrong back then. Please take the time to read this, and imagine the cajones it took to write this in early 2003, when gold was around $350. Then you can have the confidence to not get freaked out every time an Elliot Waver tells you everything is already pre-determined.

http://www.gold-eagle.com/editorials...

When you boil it down, Prechterians argues that the "waves", as expressions of the psychology of the markets, trump fundamentals. He and his followers claim the waves are going to complete no matter what the fundamentals.

Intuitively, I know this is not correct. In this writer's and my own opinion, waves are expressions of the market psychology based on fundamentals, not the other way around. There is a huge difference. Elliot wave can be useful, but is not the oracle of all investing.

Hysteria