Wednesday, October 30, 2013

Boston Red Sox win 2013 World Series: Bad Omen for Stocks?

On the evening of Wednesday, October 30, 2013, the Boston Red Sox beat the St. Louis Cardinals 6-1 in their first home game world series championship win since 1918. The other two times the Red Sox have won the World Series since 1918, 2004 and 2007, they were traveling and didn't get to enjoy the win at their own Fenway Park. Now in 2013, they have even more to celebrate than the prior two instances they won the World Series Championship. While Fenway Park is celebrating, could this win be a sign of a major impending top in the stock market?

Please click here for an article on the big win by the Boston Red Sox

The Socionomics Institute, the sister company of Elliott Wave International, found that baseball is a "bull market sport". They found that baseball ticket sales, and thus it's popularity, rise during times when the stock market, are rising, and fall at times when the stock market is falling. From a contrarian standpoint, we know that market tops are always met with good news; be it more central bank intervention, the "stabilization" of the European Banking System through bank recapitalizations, or any other piece of news that would be viewed by most as positive. Well, here in the Fall of 2013, we have historical good news on a bull market sport. It would appear that this is just one of many contrary indicators that the stock market may be at or near a very significant top. Time will tell, but from an Elliott Wave perspective, with the market having met the minimum requirements for the end of a double zigzag upward correction from the 2009 low, this historic win by the Boston Red Sox may very well have marked top tick for the bear market rally that began in March 2009.

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