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Weekend Stock Market Analysis

(10/19/13)

Congratulations to Bernanke and the Momentum Chasing Crowd who have achieved another milestone in the market.  The current rate of change calculated over a 55 month period is now slightly higher than the previous peak that occurred with the late 1990's bubble.  

 

Furthermore since March of 2009 the S&P 500 has risen over 1000 points which is similar to what occurred from 1995 to 1999 so the market is definitely in a parabolic move.

Finally keep in mind parabolic moves like we are currently seeing never end well.  Hopefully when this latest parabolic move ends we will not see a repeat of the period from late 1929 through 1932 which followed the parabolic move from 1925 through 1929.    

 

 

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