Bucking Broncos
Yes, I agree, it would be great if this whole thing could turn on a dime and
enable us to see a brand new bull in the coming year.Â
But it’s sobering when you realize that eight out of the past 26 bear markets (if
we throw out 1987 as an anomaly) since 1900 have been longer than our current
one.
Based on this comparison, the current bear market is still rather young.
Hopefully, not too young to die though.
Whatever happens in the long run, staying on your toes will keep you out of
trouble. Dec. 18, 2000, I showed you this chart.
We didn’t get a bounce from the lows of the range and plunged
straight down through it to the bottom of the steep trend channel and got a big
bounce on Friday. Here’s the chart updated on to include today’s action.
I suspect that Dave
Landry’s team of six-year old market analysts would say it’s still going
down the slide.
Keep this in the back of your mind: There are still hot stocks
that are like bucking broncos–moving wildly without any regard to what the
market is doing.
Genzyme
(
GENZ |
Quote |
Chart |
News |
PowerRating) looks good not only because of its strength
since mid-Sept., but because it’s near support off its 20-day moving average,
range-lows, and 50% retracement (Nov. lows – Dec. highs). A favorable move in
the market would help support GENZ rising up from this support.
Wishing you holiday cheer and prosperity in the new year,