3 Prior Market Crashes

Wednesday, January 23, 2008 | 12:45 PM

Today's chart porn comes to us via Bob Bronson.

Here's a comparison of 3 prior market crashes: 1930, 1962, 1987 and today. (Note that there is no guarantee that this will be a crash, or if it is it will be the same as those others):

>
1930, 1962, 1987, 20084_crashes

Source: Bronson Capital Markets

>

We are getting to a point where markets are oversold, and due to bounce. But understand what odds we are facing here: A deep recession likely awaits us, and with it, earnings compression, and lower -- often considerably lower -- stock prices.

We will hear a lot of noise about Fed action, stimulus plans, etc. -- every reason why you should jump back in here -- but all that intervention will accomplish is delay the inevitable washout.

>

 

UPDATE: January 23, 2008 4:15pm

Wow, that was a helluva bounce.

The rumors of NYS helping to arrange a capital bail out of the monolines didn't hurt.

And, it can keep going -- perhaps over the next few weeks -- to SPX 1,400 or so . . .

Wednesday, January 23, 2008 | 12:45 PM | Permalink | Comments (88) | TrackBack (0)
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More chart porn (CA RE):

http://media.sacbee.com/smedia/2008/01/22/21/188-3W23FORECLOSEZ.xlgraphic.prod_affiliate.4.gif

Posted by: damondidit | Jan 23, 2008 12:57:57 PM

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