Exactly 1,000 trading ago stock prices hit their last bottom on March 9, 2009. Curiously, the recovery before this from the low point of March 11, 2003 also reached 1,000 trading days on a March day; it was the first day of March 2007.
Coincidence? Perhaps, but consider some parallels between then and now; these may be useful when wondering what to do with financial investments, now that stock prices are on the verge of beating previous all-time high.
Indeed, our current recovery is far beyond that earlier one: the S&P500 now stands at 203 percent of its bottom of 1,000 days ago. Thats a major improvement over the 157 percent achieved in 2007. Thats wonderful of course, but also ground for caution.
Has this market already reached its top or are prices going far higher? Thats the essential, obvious question. Our suggestion is to look at the number 154.
That was the number of trading days left in the 2003/2007 bull market after passing the 1,000-day mark since surging from its 2003 low. That happened on October 9, 2007. We focus our diagram of the S&P500 there. If we project the current resurgence to last as long, it will top out around the beginning of October 2013.
If that happens two recent bull markets, each lasting 1,154 days and ending in early October- will that be coincidence, or demonstrate the existence of some unknown force affecting the nations financial markets?
Heres another happenstance revealing parallels between then and now. In 2007, the S&P500 hit a temporary ceiling not at, but shortly before, the 1,000-day recovery point. That occurred seven days earlier, at recovery day 993.
How similar, how parallel to now when our last high happened this past February 19, some eight trading days ago, at recovery day 992!
DJIA .25 percent
NASDAQ .30 percent
S&P500 .23 percent
