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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (3145)	4/29/2010 1:53:07 PM
From: Patrick Slevin	1 Recommendation Read Replies (5) \| Respond to of 222346

Read an interesting comment today, The author looked back at what happened to the Market after a drop like last Tuesday's 200 pointer. So he traced all three standard deviation declines on record in the DJIA that occurred during the second quarter yet with the DJ still closing above the 200 dMA. (Yes, I know. You would think people could find better things to do.) Anyway, to move on it happened 14 times in the last 100 years, the most recent time in May of 1995. In all but one instance the result was an advance, averaging 6.4% over the following 7 weeks. (Don't worry, I'm getting to the point soon----) You asked, It seems the market doesn't care about the broad debt problems... I wonder why... One of the reasons provided for the May, 1995, drop according to the NYT database was the rising trade deficit with Japan and fears that a decline in borrowing costs was coming to an end. The Dow also was riding a seven month surge and just hit 6 new Highs in a row. He draws a parallel to today. The upshot was that the Dow doubled over the next three years. The comment came from a newsletter writer named Markman.