Friday, February 11, 2011

Does history repeat in the market? 2-11 (cont)

I showed you 2 charts that look remarkably similar.  So does history repeat or just rhyme?  Well one chart covers about 2 years, the other about 4 years.  The first chart was 2001-2002 time frame.  The second chart was 2007-2010 time frame.  So I think we can agree - not a repeat of history, but a rhyme. 

In other words the market is moving at a slower pace down/up than it was during the ".com" bust and recovery.  So keep that in mind when viewing the charts (if 2001-2002 chart makes a move in 1 month it would take 2 months to make the same move today  if that relationship continues).

So here are the charts with labels (time and price):

Hope you found this enlightening.  GL traders.

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