Stock Market Rallies Since 1900
- Posted by JC Parets
- on July 17th, 2013
I think it’s important every now and then to take a step back and really compare today’s market environment to similar circumstances throughout history. It helps to gain some perspective on where we are and where we’ve been. And maybe, some of that information can shed some light on where we’re going.
Today’s Chart of the Day plots every Dow rally in terms of both magnitude and duration. Rallies in the Dow Jones Industrial Average, according to this chart, represent any advance that came after a 30% decline. There have been 13 such instances since 1900, which on average is one every 8.5 years or so.
Here is the chart showing how our current stock market rally (off the March 2009 lows) is below average in both magnitude and duration:
The good folks at Chart of the Day also note that when you compare the current advance to the most recent post-major bear market rally (i.e. the rally that began in 2002), this bull market is significantly greater in magnitude but also accomplished this feat in less time. I thought that was interesting. But if you go back further in history, this “huge rally” is really nothing special. At least not yet…
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) in 2008 and now actively manages money incorporating Technical Analysis and Behavioral Finance into his practice More
- Why America is the Best in the World?
- Webinar: Technical Analysis To Find Profitable Opportunities Around the World
- Was That A Failed Breakout in the US Dollar?
- Radio: Larry Kofsky & JC Parets from NYSE
- This Chart Still Suggests Buying Bonds and Selling Stocks
- Fox Business: US Stocks Are Heading Lower
- S&P500 Breaks the 2009 Uptrend Line
- The Bond Market Still Says: “Sell Stocks”
- Discretionary vs Staples Ratio Breaks 2009 Uptrend Line
- What the 200 Period Moving Average Means to Me
Archive by Year