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wardpsych

Dow Repeats Great Depression Pattern: Charts

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The Dow Jones Industrial Average is repeating a pattern that appeared just before markets fell during the Great Depression, Daryl Guppy, CEO at Guppytraders.com, told CNBC Monday.

“Those who don’t remember history are doomed to repeat it…there was a head and shoulders pattern that developed before the Depression in 1929, then with the recovery in 1930 we had another head and shoulders pattern that preceded a fall in the market, and in the current Dow situation we see an exact repeat of that environment,” Guppy said.

The Dow retreated 457.33 points, or 4.5 percent last week, to close at 9,686 Friday. Guppy said a Dow fall below 9,800 confirmed the head and shoulders pattern.

The Shanghai Composite is seeing a very rapid collapse, falling below 2,500, which suggests the major fall in the Dow, he added.

In the European markets, Guppy says Frankfurt's Dax is witnessing a different pattern to London's FTSE.

Guppy uses the broad trading band as measurement- giving the Dax a downsize target of 1,500. The same head and shoulders pattern seen in the Dow can also being seen in the FTSE, he added.

http://www.cnbc.com/id/38092759

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http://retirementinvestingtoday.blogspot.com/2010/07/history-of-severe-real-s-500-stock-bear.html

I also find this interesting. This is from my own work. Looking at a standard S&P 500 chart would make you think the bear market began in 2000 (dot com) and then a second in 2007 (credit crunch) with 2 peaks of pretty similar height. Correct the whole thing for inflation though and it's a very different story. Second chart then takes it a step further and compares to some previous pretty big long term historic bear markets (bear market that included the 1907 Bankers Panic, bear market that included the Great Depression, bear market including the 1973 Oil Crisis)

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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