Friday

Bear Market Comparison Chart Update 23.10.2009:1929 vs 1937 vs 1976 vs 1987 vs 2000 vs Current

Quick update on the comparison of ALL MAJOR bear markets since 1929. Apologies for the clutter - click to enlarge.

Comparison of All Bear Markets since 1929 Update 23 October 2009 | www.theinflationist.com

Comparison of All Bear Markets since 1929 Update 23 October 2009 | www.theinflationist.com

Our preferred comparison of the current bear market with Nikkei’s 1989 Crash updated below:

Comparison of Nikkei 1989 Crash and Current Bear Market Update 23 October 2009 by www.theinflationist.com

Comparison of Nikkei 1989 Crash and Current Bear Market Update 23 October 2009 by www.theinflationist.com

For our new readers, here is the first post we made comparing the Nikkei’s 1989 crash with the Dow’s current crash. If we shifted the current chart to the left, we have slightly surpassed the Nikkei’s recovery in terms of percentage gains. In terms of duration, we are due for a decline. Note the Dow declined greater than Nikkei’s initial decline - is this a case of the harder you fall the higher you bounce?

Looking at the Nikkei, it failed to fulfill its inverse head and shoulders upside targets many now are expecting the Dow to do. Sure, it could get there and over, we continue to anchor our shorts as we scale this wall of worry.

A cartoon a reader sent to us recently by pritchettcartoons.com

Bear Market Cartoon by pritchettcartoons.com

Update: SHORTING WITH STOPS

• $4/point at 10020 average. Stops 100 points above.

Shorting the Dow