For a 4-year cycle rally - How does the current rally rank? Chart of the Day

The folks at Chart of the Day have updated their comparison of the equities rally to similar previous rallies. It's also interesting because it refers to what sounds like the 4-year cycle - at least that's my interpretation. Since the general thinking now is that March 2009 bottomed a 4-year cycle low, it's worth considering this information - which they post at their site at http://www.chartoftheday.com/20100115.htm

So here's their chart with their comments:

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Chart of the Day - How does the current rally rank?

January 15, 2010

The Dow made another rally high Thursday. To provide some perspective to the current Dow rally that began back in March, all major market rallies of the last 110 years are plotted on today's chart. Each dot represents a major stock market rally as measured by the Dow. As today's chart illustrates, the Dow has begun a major rally 27 times over the past 110 years which equates to an average of one rally every four years. Also, most major rallies (73%) resulted in a gain of between 30% and 150% and lasted between 200 and 800 trading days -- highlighted in today's chart with a light blue shaded box. As it stands right now, the current Dow rally (hollow blue dot labeled you are here) has entered the low range of a "typical" rally and would currently be classified as both short in duration and below average in magnitude.

Quote of the Day
"Buy when everyone else is selling, and hold until everyone else is buying. This is not merely a catchy slogan. It is the very essence of successful investing." - J. Paul Getty

Events of the Day
January 17, 2010 - Golden Globe Awards
January 18, 2010 - Martin Luther King Jr. Day (observed) - Australian Open Tennis Tournament begins (ends Jan. 31st)

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