I couldn't help but notice how the magical TRIPLE that we've had in the stock market since the 2009 low was mirrored by a time in the not too distant past when there was a TRIPLE in the same 5 years time.
Granted - there are many differences in the fundamental backdrop, but given that we all want to educate ourselves on what markets can do based on what they have done in the past, this is at least a useful reference to see and to compare to the current rally.
The current advance has outlasted the 1982-1987 rally in time, but has lagged in price by a little.
I look at the near "linear advance" in the market as unusual. Tripling your money in 5 years is a tremendous return and given that the 300% advance has only been tested lightly a few times, there certainly could be a test to the market again in the near future. I offer this chart as educational value. How to implement a strategy off of this observation remains to be seen. You can see what happened back in 1987 though once the stops were getting triggered... it turned into a cascade of sell orders. That same condition could certainly emerge from here too.
Keep your helmets on tight. The going could get rough.
Tim Sun 11:49PM EST 9/21/2014 SPX 2010.40 last
Granted - there are many differences in the fundamental backdrop, but given that we all want to educate ourselves on what markets can do based on what they have done in the past, this is at least a useful reference to see and to compare to the current rally.
The current advance has outlasted the 1982-1987 rally in time, but has lagged in price by a little.
I look at the near "linear advance" in the market as unusual. Tripling your money in 5 years is a tremendous return and given that the 300% advance has only been tested lightly a few times, there certainly could be a test to the market again in the near future. I offer this chart as educational value. How to implement a strategy off of this observation remains to be seen. You can see what happened back in 1987 though once the stops were getting triggered... it turned into a cascade of sell orders. That same condition could certainly emerge from here too.
Keep your helmets on tight. The going could get rough.
Tim Sun 11:49PM EST 9/21/2014 SPX 2010.40 last
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