PART III
THE BASIS OF THE WAVE PRINCIPLE IN BIOLOGY, PSYCHOLOGY AND SOCIOLOGY

The formal construction of the stock market's path implies a mechanism of impulsive cooperation on the part of the market participants and therefore of society at large. Because aggregate stock price movement is intricately patterned, there must be primary causes of its behaviour, forces that shape it. Part III argues that the primary mover of aggregate stock market prices is mass emotional change, which itself must be, and demonstrably is, independent of outside influence. The specifics of market action are determined by the naturally occurring direction, speed and extent of social mood changes.

If the Wave Principle were the only basis for making this claim, then proof would rest entirely upon demonstrating the validity of the Wave Principle. I believe the literature (including Chapters 5 through 7 of this book) has done a fair job of doing so. For many people, though, that is not enough to dispel skepticism. Is there any other basis to believe that mass emotional change is independent of social events and conditions? Are there biological and psychological sources of these emotional imperatives? Science provides insights that respond to this question in the affirmative

Remember the way Safcom played around 2 - 2.50 for sometime? A similar scenario is in the offing for the sub - 10 bob. Safcom is FIVE Waves Up. A major correction is due.

I'll be posting charts soon.

Fundamental Investing primarily relies on PERFORMANCE (profits, assets, cashflow) which does not always correlate with the share price especially in the short term.

@mmandii - It seems that Elliott and Charts are about the "price" more than the underlying financial performance. Do I have this right?

So fundamentals precede the charts. In other words, fundamentals are the now, charts are history.