07 November 2010

Chart of the Day: Stock market rallies since 1900

Chart of the Day had an interesting chart showing the length of bull markets; as they commented:
the current Dow rally (hollow blue dot labeled you are here) is still somewhat short in duration and below average in magnitude when compared to all the stock market rallies that occurred since 1900
Chart of the Day adds:
Most major rallies (73%) resulted in a gain of between 30% and 150% and lasted between 200 and 800 trading days.
Whatever the imperfection of such data (where are the rallies in bear markets, that can be extremely profitable), this a useful reminder that the current bull market (or rally in a bear market) is not yet de end if history repeats itself.

Source:
Chart of the Day: http://www.chartoftheday.com/20101105.htm?T