Here’s an EXCELLENT collection of news articles and charts from the depression years of the 1930’s. Each slide shows a different quote from the news of the day and it is ABSOLUTELY uncanny how similar the news was in 1930 compared to today. From the quotes and charts provided, you’ll see that in 1930, they thought the recovery had arrived!!! Of course, that was just the fool’s rally before the L O N G grind to the bottom. One of the problems that contributed to the great depression was the dust bowl. Could the Gulf Oil Spill be today’s equivalent of the dust bowl?
Note: the link above starts on slide 1 of 21 - click one slide to the left (toward 0 of 21) to read the article that accompanies the slides.
Here’s what I see…
On slide #8, There is a bit of a “head and shoulder” pattern. A break below the neckline confirmed the pattern. That neclkine was about 300… Then after the drop, there was a rally that stalled at 300… That 300 WAS support. Support becomes resistance after its broke. Since the rally stalled at resistance, that was another SIGN… It dropped and rallied again… That rally stalled AGAIN at 300… That was a “double top” pattern. That was the 3 rd and final sign before the long grind lower… The chart patterns are simply the sentiment of investors reflected by price movement. Not everyone went broke back in then. I’m sure there was a lot money made ( remember what Potter was doing in “Its a Wonderful Life”). I’m sure there were a lot of people who bought into the blood during the last crash and any future ones. Those people make FORTUNES buying the dips and selling the rallies. The bigger the dips and rallies, the bigger the profit…
You say there’s a big drop coming. I say BRING IT ON!!! :biggrin :beer
I’m not so sure the DOW will be 1,000. That’s a bit extreme IMO. But if you think the market’s going down, short it. If you think its going up, buy it. When the move runs out of steam, cover the trade and go the other way or stay in cash until an opportunity arises.