Bulkowski's Market Review
S&P 500 (^GSPC):
As of 12/06/2013
16,020 198.69 1.3%
7,200 43.90 0.6%
490 5.88 1.2%
4,063 29.36 0.7%
1,805 20.06 1.1%
or 15,750 by 12/15/2013
or 6,900 by 12/15/2013
or 480 by 12/15/2013
or 3,900 by 12/15/2013
or 1,750 by 12/15/2013
Written by and copyright © 2005-2013 by Thomas N. Bulkowski. All rights reserved.
This is the main gateway for significant events in the stock market. The conclusions I draw from this analysis are two:
- If a major shock occurs that takes price down dramatically, buy soon after, perhaps within a week. This
occurred on 9-11 and Black Monday (the 1987 crash). Early entry means you get in near the bottom of a fast recovery.
The downside is, the recovery will be like an ugly double bottom or
a dead-cat bounce -- a bounce upward with the second low above the
first. That is fine so long as you get in near the low and not near the top of the bounce.
- For bear markets, like the 1929 stock market crash and the 2000-2002 bear market, then you have to call the bottom correctly
before adding new positions. Taking your time before jumping in may mean missing a few points of the rise, but it helps
avoid markets that climb some before continuing down.
This page is dedicated to Ronda Palm who gave me the idea... Thanks Ronda.
-- Thomas Bulkowski
Copyright © 2005-2013 by Thomas N. Bulkowski. All rights reserved. Moderate: a guy who makes enemies left and right.