2000 NASDAQ Rhymes with 1929 Dow - 2nd biggest rhyme of all time
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This graph is the Golden-125 indicator for the 1929 Dow and the 2000 NASDAQ. Read the July 24, 2007 post to understand how the G-125 score is derived.
Many of the salient points are annnotated on the graph.
Note the two legs down after the bull market ends on the 1929 G-125 line. In the previous post the 1949 Bull had two similar moves down. The first rebound is the headfake, the second leg down takes the speculators out of the market. This happened in 1937 after the 1932 market quadrupled and inspired renewed confidence in the markets. It happened in 1974 afer the 1969-1970 recession was shrugged off and the 1973 markets raced to new highs on record corporate profits.
And most importantly, it will happen in 2008-2009 as the 2002 recession becomes a distant memory and hope springs eternal that the worst is behind us.