One of the most impressive stock market cycles in 20th century is known as "Year 7 Pattern" which is that years ending in "7" have historically reached the top of a bull market and then quickly started selling off, which marked the beginning of deep correction or a bear cycle. Here are the historical stats.
| 1917 ==> -40.1% |
| 1927 ==> -10.2% |
| 1937 ==> -49.1% |
| 1947 ==> -24.0% |
| 1957 ==> -19.4% |
| 1967 ==> -25.2% |
| 1977 ==> -26.9% |
| 1987 ==> -35.1% |
| 1997 ==> -13.2% |
The average of these sell offs is 27% and so far this market is down about 8%.
For those of you have never heard of Zanger. Check him out at chartpattern.com. He's one of the best traders around.
2 comments:
Minor detail: Mr. Zanger's website is actually www.chartpattern.com.
Thanks for the correction Bill. I am on still on pain killers. :-)
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