fbpx The Specter of 2001 Still Haunts This Market (Preview) | Option Strategist

The Specter of 2001 Still Haunts This Market (Preview)

By Lawrence G. McMillan

We have written repeatedly about the similarities between the markets of late 2000 and early 2001, ascompared to late 2018 and early 2019. Those comparisons are still valid.

The accompanying graph is a repeat of one that we’ve published before, having last shown it just after the new year (2019) began. Now, we’ve reached the end of January – the exact time when the market turned southward again in 2001. So the first four comments on the chart of 2000-2001 are applicable to 2018-2019 as well, including the last one: that the January rally has reached the +3ó “modified Bollinger Band” (mBB).

In short, bear markets are punctuated with fierce rallies that top out without much notice, and then the major downward trend takes over again for a while. In bull markets, tops are rounding, drawn out affairs, but not in bear markets...

Read the full article, published on 2/1/2019, by subscribing to The Option Strategist Newsletter now. 

The Option Strategist Newsletter $29 trial

Share this

Option Strategist
Blog Search

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
Visit the Disclosure & Policies page for full website disclosures.