"Never Short a Dull Market"
Tuesday, April 6, 2010 at 03:30PM Over the last few years, investors became used to not only one percent days, but also two, three, and even four percent days. At one point during the last bear market, the S&P 500 was averaging a daily move of +/-4% over a 50-day period! But believe it or not, it has now been more than a month (21 trading days) since the S&P 500 had a one-day gain or decline of at least one percent.
While 21 trading days without a one percent move seems like a long streak after what we've been through recently, it was actually not that uncommon prior to the financial collapse. As recently as January 2007, the S&P 500 had a streak of 38 days without a +/-1% daily move. As shown in the chart below, the current streak is big compared to the last couple of years, but it pales in comparison to many streaks over the last 20 years. While the S&P hasn't had a one percent gain or decline since March 5th, the index is up 4.54% over the time period. Most of these streaks come during periods where the market is rallying nicely. The phrase "never short a dull market" came about for a reason!
Reader Comments (1)
I appreciate for your post! I hope you will keep it on. I also want to make friends with you and share my favorite replica watches to you. I am focus on you.