{"id":1941,"date":"2024-03-09T12:05:18","date_gmt":"2024-03-09T12:05:18","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/03\/09\/you-need-to-realize-one-important-fact-with-big-rallies-like-this-one\/"},"modified":"2024-03-09T12:05:18","modified_gmt":"2024-03-09T12:05:18","slug":"you-need-to-realize-one-important-fact-with-big-rallies-like-this-one","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/03\/09\/you-need-to-realize-one-important-fact-with-big-rallies-like-this-one\/","title":{"rendered":"You Need To Realize ONE Important Fact With Big Rallies Like This One"},"content":{"rendered":"
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Make absolutely no mistake about it, Friday was the most bearish day of 2024. There was a bearish engulfing candle on MASSIVE volume in the semiconductors area ($DJUSSC), and this group has been BY FAR the biggest single reason why our major indices have advanced as much as they have. Check out this chart:<\/p>\n

That\u2019s a NASTY bearish engulfing candle on the semiconductor chart. And the reversal occurred on the second largest volume of the past 6 months. I believe today\u2019s open marked a very significant top on the DJUSSC. That doesn\u2019t mean the overall market rally has ended. But I do expect to see other areas of the market lead the next advance. At a minimum, I\u2019d expect at least short-term consolidation or selling among semiconductor stocks. That\u2019s not a bad thing, it\u2019s a necessary thing. Continuing higher in parabolic fashion would only end in a much more substantial pullback.<\/p>\n

But huge rallies do not always end in despair. In fact, most just keep on truckin\u2019!<\/p>\n

Let\u2019s check to see how the rally off the October 27th low measures up against other periods over the past few decades, first on the S&P 500 and then on the semiconductors index ($DJUSSC):<\/p>\n

S&P 500:<\/strong><\/p>\n<\/p>\n

The blue-dotted vertical lines coincide with every 90-day period in which the S&P 500 gains 25% or more. Prior to the current 25% gain in 90 days, you can see that it\u2019s only been achieved a handful of other times over the past 30 years. The black arrows tell you that every one of these 25% rallies occurred AFTER a significant bear market bottom or correction low. This is the importance of calling major market bottoms, because the biggest gains take place on the heels of these bottoms.<\/p>\n

Next, check out what happens to the S&P 500 after these 25%+ gains are made. It keeps going higher! <\/em><\/strong>We are in a secular bull market. If you have been waiting to get into this rally, I\u2019d consider using any short-term weakness to do so. That\u2019s my opinion, of course. I\u2019m not a Registered Investment Advisor and, therefore, am not licensed to provide recommendations. I\u2019m simply providing educational materials based on my research. Do with it what you will.<\/p>\n

Semiconductors ($DJUSSC):<\/strong><\/p>\n<\/p>\n

Here, the blue-dotted vertical lines coincide with 90-day periods where the DJUSSC gains at least 50%. Again, this has only happened a handful of times. Right now, the last 90 days has resulted in a gain in the DJUSSC of more than 75%, which eclipses any other semiconductor rally over the past 30 years. The group needs a break.<\/p>\n

Should semiconductors stall here, I\u2019m still very encouraged by the small cap asset class. On Monday, I\u2019ll be analyzing a tiny software company that this week broke out of a cup with handle pattern on crazy high volume. It potentially could gain 40-50% over the next few months to its pattern measurement. To check it out, you can CLICK HERE<\/a> to subscribe to our FREE EB Digest newsletter with only your name and email address. I\u2019ll send you this tiny software stock on Monday morning.<\/p>\n

Happy trading!<\/p>\n

Tom<\/p>\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Make absolutely no mistake about it, Friday was the most bearish day of 2024. There was a bearish engulfing candle on MASSIVE volume in the semiconductors area ($DJUSSC), and this group has been BY FAR the biggest single reason why our major indices have advanced as much as they have. Check out this chart: That\u2019s […]<\/p>\n","protected":false},"author":0,"featured_media":1942,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1941","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/1941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=1941"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/1941\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/1942"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=1941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=1941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=1941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}