Things look even worse as we zoom out of the monthly chart, which now has a bearish candle breaking a multi-year trendline.
So, don’t let the recent action fool you into thinking the worst is over. Remember, the biggest stock market rallies come in bear markets. You don’t get 7% snap back rallies during up-trending bull markets.
It takes high volatility to spark something like that, and it only happens when risk is extremely elevated. The current rally is not characteristic of the type of environment where stocks are going up
Note, the top 10 largest up days over the past 30 years took place in 1987, 2002, 2008 & 2009. Those were all in the teeth of major bear markets.
About the Author:
9 "Must Own" Growth Stocks For 2019
Get Free Updates
Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!
Top Stories on StockNews.com
3 Dividend-Paying Consumer Staples Stocks for Stability
Dividend-paying consumer staples stocks offer consistent income and resilience. Therefore, investing in companies such as Walmart (WMT), Colgate-Palmolive (CL), and Sysco Corp (SYY) might be a good way to build a resilient portfolio. Read on…
Expensify Inc. (EXFY) vs. Jowell Global Ltd. (JWEL): Which Small-Cap Stock Offers More Upside?
Small-cap stocks offer high growth potential, especially during economic recoveries and rate cuts, making them attractive for investors seeking significant returns. So, let’s analyze Expensify (EXFY) and Jowell Global (JWEL) to determine which small-cap stock offers more upside. Read more...
3 Retail Stocks Thriving in the E-Commerce Era
Retail stocks present significant growth opportunities as consumer behavior evolves, particularly during the holiday season. Therefore, it could be wise to watch top retail stocks such as Costco Wholesale (COST), Target Corp (TGT), and Walmart (WMT). Keep reading…
Stock Investors: Are You “Fed Up”?
The post 12/18 Fed meeting sell off caught many by surprise as the S&P 500 (SPY) broke under 6,000 for the first time this December. What is happening? And why? And what comes next? Steve Reitmeister shares his view in the fresh article to follow...