Putting This Stock Market Rally Into Perspective
- Posted by JC Parets
- on September 28th, 2012
The good folks over at Chartoftheday.com have a good one out this morning. Like them, I think it’s constructive to compare today’s market to other times throughout history and see if maybe we can learn something. The chart below plots our current bull market with every rally the past 111 years that got started after a 30% decline (i.e. a major bear market). Each dot represents a major bull market as measured by the Dow Jones Industrial Average:
Notice how the rally that began in March of 2009, as quick and dirty as it’s been, is actually still well below average in both duration and magnitude.
Look at the monster in 1942 plotted on the upper right hand corner.
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J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) and is a member of the Market Technicians Association. More
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