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2004 U.S Equity Market Low


Written: 15 August, 2004 MDsnews Investment Advisory

Context: Long-term investing

Terminology: Communicating to experienced investors, familiar with indicators and signals mentioned

This is certainly a unique time of year for the US equity markets. Historically (decades) we are in the three most bearish months of the year August, September and October, a market bottom usually forms in September or October. What generally follows are the three most bullish months of the year November, December and January.

Since the market has been moving down for sometime already, maybe the next three months will not be as negative. Generally, if the market had been had been consolidating sideways a sharper move to the downside could be expected.

In the meantime, above a prior days high, all indicators are signalling a market rally to the upside.

Reproduced with permission