CHECK OUT THE SIMILARITIES! History never repeats, it rhymes.
I want you take a close look at the four charts attached on this post. Let me preface that i was trading during the 2002 bear lows. I remember a very eerily similar sentiment happening among average joe investors during THE bottom of 2002. I recall that NO ONE believed that OCT 2002 was the ultimate lows, most average joe traders were still short convinced that the market WILL RETEST the lows and they will cover their bets at HUGE gains. But unfortunately for them, that 'retest' never came....not the kind of 'retest' they were looking for at least. 2002 bear market ended with a Double Bottom but this double bottom was awkward but a double bottom non the less. I am getting a gut feeling that 2009 March lows COULD have been the "retest" of the Novmber 2008 lows and might not be the 'retest' everyone is looking for. We might as well have started a new mini bull market within a secular bear market in equities. These rallies are very common place within secular bear markets and can produce at least 50% or more rallies off the bottom and can last for months or years before the primary trend reasserts itself. Are you skeptical? Then a trader with an open mind will say: "GREAT! Stocks in bull trends climb a wall of worry and the biggest strongest rallies are built with tons of skepticism."
